Life insurance - South Korea | Statista Market Forecast

The South Korean Life insurance market market is expected to reach a market size (gross written premium) of US$105.10bn in 2024.
Furthermore, the average spending per capita in the Life insurance market market is projected to amount to US$2.03k in 2024.
The market is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 0.50%, resulting in a market volume of US$107.80bn by 2029.
In comparison to other countries worldwide, the United States is expected to generate the highest gross written premium, with an estimated value of US$1.3tn in 2024.
The South Korean life insurance market is experiencing a shift towards digitalization and the adoption of innovative technologies to enhance customer experience and streamline operations.

Definition:

Life insurance is a type of financial product that provides financial security for individuals and their families. In simple terms, when you buy a life insurance policy, you pay regular premiums to the insurance company. In return, if you were to pass away while the policy is in effect, your designated beneficiaries receive a lump sum payment, known as the death benefit, which can help them cover living expenses and financial needs. Life insurance is designed to provide peace of mind and support for loved ones in the event of the policyholder's death. Gross written premium (GWP) is the main indicator of the insurance market. It is the total amount of money that an insurance company collects from policyholders for their insurance coverage before deducting expenses or commissions.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, loss ratio – calculated as gross claim payments divided by gross written premium, and the share of insureds in the total population for over 50 countries.

Death benefit insurance
Endowment insurance
Disability insurance
Dowry insurance
Birth insurance
Term life insurance
Whole life insurance
Universal life insurance
Burial insurance
Other types of life insurance

Health Insurance
All non-life insurance types
Reinsurance

South Korea's Life insurance market is experiencing significant growth and development, driven by various factors that are shaping the industry landscape in the country. Customer preferences in South Korea's Life insurance market are increasingly leaning towards more diverse and personalized products. Consumers are seeking insurance policies that offer a wide range of coverage options, flexible terms, and value-added services. This shift in preferences is driving insurance companies to innovate and tailor their offerings to meet the evolving needs of customers. Trends in the market indicate a growing demand for digital insurance solutions and online distribution channels. Insurers in South Korea are investing in technology to enhance customer experience, streamline processes, and reach a wider audience through digital platforms. Additionally, there is a trend towards more sustainable and socially responsible insurance products, reflecting a broader global movement towards ESG (Environmental, Social, and Governance) considerations. Local special circumstances in South Korea, such as the country's aging population and increasing awareness of the importance of financial planning, are influencing the growth of the Life insurance market. As the population ages, there is a greater emphasis on retirement planning and long-term financial security, leading to a higher demand for life insurance products. Moreover, the government's efforts to promote financial literacy and insurance coverage are also contributing to the market expansion. Underlying macroeconomic factors, including stable economic growth, low interest rates, and regulatory reforms, are playing a significant role in shaping the Life insurance market in South Korea. The country's robust economy and low interest rate environment are encouraging individuals to invest in insurance products as a means of wealth accumulation and protection. Regulatory changes aimed at enhancing consumer protection and transparency are also influencing market dynamics and driving insurers to adapt their business models to comply with new requirements.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

The biggest life insurance market globally is the United States, and it was almost twice as large as the second-biggest market, China. People take out life insurance to financially support their loved ones after their death. The payout is often used to cover funeral expenses, replace income earned by the deceased, or pay for children's education. It can be paid out in a lump sum or as an annuity, which is paid in regular installments for either a specified time or for the lifetime of the beneficiary. In 2022, the United States was the leading life insurance premium writing country, with a total value of life direct premiums written exceeding 600 billion U.S. dollars. The second and third-largest life insurance markets were China and the United Kingdom, respectively.