Insurances

The Insurances market in South Korea is expected to reach a projected market size (gross written premium) of US$143.70bn in 2024.
Life insurances dominate the market with a projected market volume of US$105.10bn in 2024.
In terms of average spending per capita, in South Korea is estimated to spend US$2.78k in 2024.
When compared globally, the United States is projected to have the highest nominal value, reaching US$3.8tn in 2024.
Looking ahead, the gross written premium is expected to have an annual growth rate (CAGR 2024-2029) of 1.31%, resulting in a market volume of US$153.30bn by 2029.
Once again, the United States is set to generate the highest gross written premium in 2024, reaching US$3.8tn.
South Korea's insurance market is experiencing a surge in demand for cyber insurance due to the increasing prevalence of cyber attacks targeting businesses in the country.

Definition:

Insurance is a financial arrangement that provides individuals or businesses with protection against unexpected financial losses. In exchange for regular payments, known as premiums, an insurance policyholder is covered in case of specific events, such as accidents, illnesses, or damage to property. When a covered event occurs, the insurance company compensates the policyholder, helping them recover from the financial impact of the loss or damage. 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.

Structure:

The insurance market comprises life and non-life insurances. 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, loss ratio – calculated as gross claim payments divided by gross written premium, for selected European countries the distribution channels of insurance bookings, and the share of insureds in the total population for over 50 countries for live, health, motor vehicle, property, general liability, and legal insurances.

Life insurances
Non-life insurances

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

The Insurances market in South Korea has been experiencing significant growth and development in recent years. Customer preferences in South Korea are shifting towards more comprehensive insurance coverage, including health, life, and property insurance. Customers are increasingly seeking personalized insurance solutions that cater to their specific needs and lifestyle choices. This trend is in line with global consumer behavior, where individuals are placing greater importance on financial security and risk management. Trends in the market in South Korea indicate a rise in digitalization and Insurtech innovations. Insurers are leveraging technology to streamline processes, enhance customer experience, and offer more accessible insurance products. The growing popularity of online insurance platforms and mobile apps is reshaping the way insurance is bought and sold in the country. Additionally, there is a noticeable trend towards the introduction of new insurance products tailored to address emerging risks such as cyber threats and pandemics. Local special circumstances in South Korea, such as the country's rapidly aging population and increasing healthcare costs, are driving the demand for insurance products. With a growing number of elderly citizens and rising medical expenses, there is a heightened awareness of the importance of having adequate health and long-term care insurance coverage. Furthermore, the government's efforts to promote private insurance as a means of supplementing public welfare programs are influencing the market dynamics in the country. Underlying macroeconomic factors, such as stable economic growth, low interest rates, and regulatory reforms, are also shaping the insurance market in South Korea. The country's robust economy and favorable business environment are attracting both domestic and foreign insurers to expand their presence and offerings. Additionally, the low interest rate environment is prompting insurers to diversify their product portfolios and investment strategies to maintain profitability in a challenging market landscape. Regulatory changes aimed at enhancing consumer protection and market transparency are further driving the evolution of the insurance sector 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.