Insurances - South Korea

South Korea

The Insurances market in South Korea is expected to reach a projected market size (gross written premium) of €131.80bn in 2024.
Life insurances dominate the market with a projected market volume of €96.43bn in 2024.
In terms of average spending per capita, in South Korea is estimated to spend €2.55k in 2024.
When compared globally, the United States is projected to have the highest nominal value, reaching €3,477.0bn in 2024.
Looking ahead, the gross written premium is expected to have an annual growth rate (CAGR 2024-2029) of 1.16%, resulting in a market volume of €139.60bn by 2029.
Once again, the United States is set to generate the highest gross written premium in 2024, reaching €3,477.0bn.
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.

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Analyst Opinion

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.

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.