South Korea's insurance market could hit $290b by 2036

Industry premiums were equal to 9.8% of gross domestic product in 2025.

South Korea’s insurance market is expected to grow steadily over the next decade, with property and casualty insurance expanding slightly faster than life insurance.

South Korean insurers collected an estimated $175.6b (EUR154b) in premiums in 2025, according to the Allianz Global Insurance Report 2026.

Property and casualty insurance accounted for $91.0b (EUR79.8b), whilst life insurance contributed $84.6b (EUR74.2b). Separate figures for health insurance were not available.

Insurance premiums were equal to 9.8% of South Korea’s gross domestic product, one of the highest rates in Asia. Property and casualty insurance penetration stood at 5.1% of GDP, whilst life insurance was equal to 4.7%.

Average insurance spending was about $3,398 (EUR2,981) per person in 2025. This included $1,761 (EUR1,545) for property and casualty cover and $1,638 (EUR1,437) for life insurance.

Allianz expects South Korea’s property and casualty premiums to grow by an average of 4.9% a year between 2026 and 2036. Life insurance premiums are forecast to increase by 4.4% a year.

Based on these projections, property and casualty premiums could reach $154.6b (EUR135.6b) by 2036, whilst life premiums could rise to $135.7b (EUR119b).

This would bring the combined market to about $290.2b (EUR254.6b).

The outlook marks a stronger growth period for South Korea’s life insurance sector. Life premiums grew by an average of just 0.8% a year between 2015 and 2025, compared with 5.4% for property and casualty insurance.

South Korea is already one of Asia’s more developed life insurance markets.

Demand is supported by an ageing population, retirement needs and the use of private insurance and savings products alongside public pension arrangements.

($1.00 = EUR0.88)