, Korea
150 view s
/Saffu from Unsplash

Korea bound for greener pastures in 2024, 2.6% growth projection

Non-life market to beat life sector in premium volume.

Korea’s insurance industry is expected to surge 2.6% this year, rebounding from the contraction recorded in 2023, Korean Re reported.

Based on an outlook report by the Korean Insurance Research Institute, premiums will reach $190b.

“The life insurance market is expected to return to positive growth in 2024 after experiencing a sharp contraction in 2023. The non-life insurance market is likely to surpass the life insurance sector in terms of premium volume, as the market is projected to continue growing in 2024, albeit at a more moderate pace compared to the previous year,” Korean Re said in a release.

The life insurance sector, after a significant drop in 2023, is predicted to see a 0.6% increase in premium income to $89b, driven by a 2% growth in protection-type insurance like health coverage, spurred by heightened risk awareness post-COVID-19. 

However, savings life insurance is expected to decline by 6.6%, as rising bank interest rates make them less appealing.

ALSO READ: South Korea’s insurers register better capital adequacy ratio Q3’23

The non-life insurance market, showing more resilience, is likely to grow by 4.4% to $100b, with long-term personal accident, health, and general property and casualty insurance being key growth drivers. 

The motor insurance market is expected to grow modestly by 1.8%, affected by lower-priced online insurance options. General property and casualty insurance is set to grow by 5.2%, particularly due to an increased focus on liability insurance.

Likewise, contract service margin (CSM) is bound to sustain its growth for both sectors this year, with an estimated jump to $52b and $48b, accordingly. This signals a profitable for insurers, Korean Re said.

“However, there is an expectation of considerable volatility in investment income. Since the implementation of a stringent monetary policy in 2022, profitability deviations among insurers have widened, and this trend may persist into 2024 due to the prolonged period of high-interest rates. With the anticipated high volatility in financial markets, an insurer’s profit size may fluctuate, contingent upon its capabilities in managing investment income,” the statement added.

(KRW1.00 = $0.00075)

 

Follow the link for more news on

Join Insurance Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

Income-Allianz failed merger shows popular opinion is king
The deal faced backlash from Singaporeans who thought it betrayed Income’s social mission.
Filipino gamers hold promise for FWD
The insurer plans to support other games and aspects of the gaming ecosystem beyond esports.