Non-life insurances - South Korea

The Non-life insurance market in South Korea is expected to reach a projected market size (gross written premium) of US$38.59bn in 2024.
The average spending per capita in the Non-life insurance market is anticipated to amount to US$745.80 in 2024.
Furthermore, the gross written premium is projected to exhibit an annual growth rate (CAGR 2024-2029) of 3.39%, resulting in a market volume of US$45.59bn by 2029.
In comparison to other countries, the United States is forecasted to generate the highest gross written premium of US$2.5tn in 2024.
South Korea's non-life insurance market is experiencing a surge in demand driven by the country's increasing urbanization and growing middle class.

Definition:

Non-life insurance, also known as general insurance, covers a wide range of insurance products that protect against financial losses related to events other than death. Non-life insurance is designed to provide policyholders with financial support and protection in various circumstances, like car accidents, property damage, and medical expenses.

Structure:

The non-life insurance market covers the following insurance types: health, motor vehicles, property, general liability, and legal.

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, and the loss ratio – calculated as gross claim payments divided by gross written premium.

Health insurances
Motor Vehicle insurances
Property insurances
General Liability insurances
Legal insurances

Live insurances
Other non-live insurances, such as travel insurance, freight insurance, and accident insurance
Reinsurance

The Non-life insurance market in South Korea is experiencing significant growth and evolution.

Customer preferences: Customers in South Korea are increasingly valuing convenience and personalized services when it comes to non-life insurance products. They are looking for easy-to-understand policies that cater to their specific needs and offer quick and efficient claims processing. This shift in preferences is driving insurance companies to innovate and digitalize their services to meet the changing demands of the market.

Trends in the market: One notable trend in the South Korean non-life insurance market is the rising popularity of digital insurance platforms. Insurtech companies are gaining traction by offering online comparison tools, instant policy issuance, and seamless customer experiences. This trend is reshaping the competitive landscape and pushing traditional insurers to enhance their digital capabilities to stay relevant in the market.

Local special circumstances: South Korea's rapidly aging population is influencing the non-life insurance market dynamics. As the elderly population grows, there is an increasing demand for health and long-term care insurance products. Insurance companies are adapting their offerings to cater to this demographic shift by providing specialized policies that address the unique needs of older customers. This presents both challenges and opportunities for insurers looking to tap into this market segment.

Underlying macroeconomic factors: The overall economic stability and steady GDP growth in South Korea are contributing to the expansion of the non-life insurance market. As disposable incomes rise and consumer awareness about financial protection increases, more individuals and businesses are opting for various non-life insurance products. Additionally, favorable government regulations and initiatives to promote insurance coverage are bolstering the market growth and attracting new players into the industry.

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.