South Korea’s life insurance market to hit $174.4b in 2030

Rising demand for health, pension, and protection products is driving growth in 2025.

South Korea’s life insurance market is expected to be worth $174.4b by 2030, growing at a compound annual growth rate (CAGR) of 4.5% in terms of direct written premiums (DWP), according to data and analytics company GlobalData.

The market is expected to grow by 3.8% in 2025 on the back of rising demand for health, pension, and protection products.

A demographic shift, regulatory reforms, rising household incomes, and industry-wide push for AI digital platforms will support the market’s growth through 2030, said Swarup Kumar Sahoo, senior insurance analyst, GlobalData.

“However, in August 2025, the Bank of Korea forecasted the GDP growth to slow to 0.9% in 2025 after the US imposed a 15% blanket tariff. Considering this, insurers have started accelerated technology adoption to counter saturating demand amongst younger cohorts and to address cost pressures from fraud and economic headwinds,” Sahoo said.

These combined interventions will improve retention, lower operational costs, and create tailored products based on demand, Sahoo added.

The rise of the aging population is making long-term financial sustainability a major issue in South Korea. One-fifth of the population is aged 54 or above in 2024, making the country a “super-aged society” according to GlobalData.

“Proposed financial sector reforms, such as increasing the retirement age and redefining the elderly population as 75 years and above, are expected to improve the condition,” Sahoo said.

Regulatory reform will also support growth by reshaping sales economics and product design, he said.

In December 2024, the FSC and the Financial Supervisory Service (FSS) announced the ‘Insurance Sales Commission Reform Direction’, which caps first-year sales commissions to no more than 12 times the monthly premium and mandates disclosure comparisons for policyholders to evaluate sales commissions by product. These changes aim to improve contract retention.

“The combination of regulatory reforms, technological advancements, and an aging population will drive sustained growth in the life insurance market in South Korea over the next five years,” Sahoo said.