Korea commercial insurance competition drives premiums lower in Q3

Underwriting remains generally flexible, although insurers are more cautious.

The Korean commercial insurance market saw intensifying competition in the third quarter of 2025, pushing premiums lower despite major wildfires and record rainfall in the first half of 2025, according to Steve Chang, Chief Broking Officer for Aon's Commercial Risk Solutions in Korea.

He said pricing reductions have accelerated across most commercial lines, supported by abundant capacity from both domestic and international insurers and the absence of large catastrophe losses so far this year. 

Underwriting remains generally flexible, although insurers are more cautious in cyber and motor.

Most policies are renewing at expiring limits, deductibles, and terms, with some well-performing risks able to secure higher limits or broader coverage at little or no additional cost. 

Cyber wordings are also being updated to align with global standards.

In motor insurance, higher claims frequency and rising labour costs have pushed up loss ratios, but pricing continues to face downward pressure due to the growth of pay-as-you-go products and online distribution. 

The casualty and liability market remains soft, except for risks with US or product liability exposure, where capacity is tightening and rates are rising.

The cyber market is seeing stronger demand following recent large data breaches, with buyers seeking more tailored coverage. 

Directors and officers insurance also remains soft, with premium cuts continuing, although companies with US IPO exposure or links to the cryptocurrency sector face tougher terms.

Property insurance remains firmly a buyers’ market, with six years of falling prices and no major losses in 2025 allowing clients to secure lower premiums and flexible underwriting.