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Health insurance - South Korea

South Korea

The Health insurance market market in South Korea is expected to reach a projected market size (gross written premium) of €15.24bn in 2024.
Furthermore, the average spending per capita in the Health insurance market market is estimated to be €294.50 in the same year.
It is projected that the gross written premium will exhibit an annual growth rate (CAGR 2024-2029) of 3.34%, resulting in a market volume of €17.96bn by 2029.
In comparison to other countries, the United States is anticipated to generate the highest gross written premium of €1,568.0bn in 2024.
South Korea's health insurance market is characterized by a strong focus on preventive care and a high level of public trust in the national health insurance system.

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Analyst Opinion

Over the past decade, the Health insurance market in South Korea has experienced significant growth and transformation.

Customer preferences: Customers in South Korea are increasingly seeking comprehensive health insurance coverage that includes a wide range of medical services and benefits. They are looking for customizable insurance plans that cater to their specific healthcare needs, such as coverage for alternative therapies and preventive care. Additionally, there is a growing demand for digital health insurance services that offer convenience and accessibility.

Trends in the market: One notable trend in the South Korean health insurance market is the rise of innovative insurance products that integrate technology and healthcare services. Insurers are partnering with healthcare providers to offer telemedicine services, health monitoring apps, and online consultations. This trend is driven by the country's advanced digital infrastructure and tech-savvy population, making it easier for insurers to reach customers through digital channels.

Local special circumstances: South Korea has a unique healthcare system that combines both public and private insurance schemes. The government plays a significant role in regulating the health insurance market and ensuring universal coverage for its citizens. This dual system creates opportunities for private insurers to offer supplementary insurance products that cover services not included in the public insurance plans. Moreover, the country's aging population and increasing healthcare costs are driving the demand for private health insurance options.

Underlying macroeconomic factors: The growing middle-class population in South Korea, coupled with rising disposable incomes, is fueling the demand for quality healthcare services and insurance coverage. As people become more health-conscious and aware of the benefits of insurance protection, the health insurance market is expected to continue expanding. Additionally, the government's efforts to promote preventive care and wellness programs are encouraging individuals to invest in health insurance for long-term health management.

Methodology

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.