South Korea's insurance industry to hit $191.2b by 2029

This year, the industry is expected to grow by 2.2%.

South Korea’s insurance industry is projected to grow at a compound annual growth rate (CAGR) of 3.4% from 2025 to 2029, increasing from $167.1b in 2025 to $191.2b in 2029, according to GlobalData. 

The growth is driven by demographic shifts and the adoption of new reporting standards, including IFRS 17 and K-ICS.  

GlobalData senior Insurance analyst Swarup Kumar Sahoo said the implementation of IFRS 17 and K-ICS will enhance solvency standards, increase transparency, and push insurers to diversify their product offerings. 

He added that demographic trends, such as an ageing population and declining fertility rates, are influencing consumer demand for insurance products.  

The industry is expected to grow by 2.2% in 2025, with life insurance accounting for 84% of direct written premiums (DWP) and general insurance making up the remaining 16%. 

The life insurance sector is set to grow by 1.8% in 2025, supported by South Korea’s ageing population. 

Statistics Korea projects the median age to rise to 48.5 years by 2030 and 52.6 years by 2040, whilst life expectancy is expected to reach 87.2 years by 2040. 

These demographic changes will drive demand for long-term financial planning and insurance products tailored to older consumers.

Regulatory changes under IFRS 17 and K-ICS have also led insurers to focus on lower-risk, long-term policies, such as protection and health insurance.

“The enhanced transparency and comparability of financial statements under IFRS 17 have also encouraged insurers to create more customer-centric products, further stimulating demand and growth in the life insurance sector,” Sahoo said in a report.

“Consequently, the life insurance sector is expected to grow at a CAGR of 3.1% from 2025 to 2029,” added Sahoo.

General insurance growth will be driven by rising demand for coverage against fire and natural disasters. Over 30,000 fire accidents were reported in 2024, increasing demand for fire and natural hazard insurance. 

The expansion of electric vehicle charging infrastructure has also introduced new fire-related risks. 

Additionally, liability insurance demand is expected to rise due to regulatory developments and mandatory coverage requirements for individuals and businesses. General insurance is projected to grow at a CAGR of 5.1% during 2025-2029.  

Sahoo said the industry’s growth will be shaped by regulatory reforms, demographic changes, and evolving consumer needs, with insurers focusing on managing rising losses from fire and natural disasters whilst offering more customer-centric products over the next five years.