General Liability Insurance - South Korea

The General Liability Insurance market market in South Korea is projected to reach a market size (gross written premium) of US$1.29bn in 2024.
The average spending per capita in this market is expected to be US$24.99 in the same year.
It is estimated that the gross written premium will show an annual growth rate (CAGR 2024-2029) of 5.01%, resulting in a market volume of US$1.65bn by 2029.
In comparison to other countries, the United States is expected to generate the highest gross written premium in the General Liability Insurance market market, amounting to US$178.4bn in 2024.
Amidst increasing litigation and a growing awareness of liability risks, South Korea's General Liability Insurance market is experiencing a surge in demand.

Definition:

General liability insurance is a type of coverage that offers protection to businesses and individuals against financial losses resulting from third-party claims of bodily injury, property damage, or personal injury. When you have general liability insurance, you pay regular premiums to an insurer, and in return, the insurer helps cover legal costs, settlements, and damages if you or your business are found liable for causing harm to others. This insurance is vital for shielding individuals and businesses from the financial repercussions of legal claims and liabilities arising from accidents or incidents that occur on their premises or as a result of their actions.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, and the share of insureds in the total population for over 50 countries.

Liability insurance booked for individuals and businesses

Motor vehicles liability
Aircraft liability
Liability for ships
Reinsurance

The General Liability Insurance market in South Korea is experiencing a significant growth trajectory driven by various factors shaping the insurance landscape in the country.

Customer preferences: South Korean customers are increasingly valuing the security and protection offered by General Liability Insurance policies. With a growing awareness of potential risks and liabilities associated with businesses, individuals and corporations are seeking comprehensive insurance coverage to safeguard their assets and interests.

Trends in the market: One prominent trend in the South Korean General Liability Insurance market is the rise of tailored insurance products to meet the specific needs of different industries. Insurers are customizing policies to address unique risks faced by sectors such as manufacturing, construction, and technology, thereby catering to the evolving demands of businesses in the country.

Local special circumstances: In South Korea, the regulatory environment plays a crucial role in shaping the General Liability Insurance market. Stringent regulations and compliance requirements set by the government influence the insurance landscape, driving insurers to offer specialized products that align with legal standards and industry practices in the country.

Underlying macroeconomic factors: The economic stability and growth of South Korea are fundamental drivers of the General Liability Insurance market. As the economy expands and businesses thrive, the demand for insurance coverage increases concurrently. Moreover, factors such as globalization, technological advancements, and changing consumer behaviors are also influencing the market dynamics in South Korea.

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.

Both the number and cost of global risks are rising due to drivers, such as climate change and cyber crime, and these trends are impacting in the insurance industry. The global insurance market was worth almost six trillion U.S. dollars in 2022, but this looks set to increase substantially in the coming years. Cyber crime is consistently seen as a leading risk to global business by risk management experts. Meanwhile, the cost of natural disaster losses rose over the past two decades. These risks are likely to grow in the future, which will sustain the growth of the insurance sector.