South Korea: Insurance market expected to rebound in 2024
Source: Asia Insurance Review | Feb 2024
The insurance market in Korea is forecast to rebound in 2024, with an expected growth rate of 2.6%, following a period of negative growth in 2023, said Korean Re in a blog posted on its website.
Total premiums are forecast to reach KRW253.8tn ($194bn), added Korean Re citing an outlook report released by the Korea Insurance Research Institute in October 2023.
The life insurance market is expected to recover in 2024 after declining steeply in 2023, with premium income forecast to grow by 0.6% to KRW120tn in 2024. Premiums from protection-type insurance are projected to grow by 2% because sales of health insurance remain robust.
The COVID-19 pandemic has become a driving force behind rising risk awareness and demand for health insurance coverage. This will provide a greater boost to insurers’ marketing initiatives to increase protection-type products under the new regulatory frameworks of IFRS 17 and K-ICS. However, a limited economic recovery may have a negative impact on insurance sales growth as fewer consumers will have extra money to spend on insurance.
The non-life insurance market has been demonstrating greater resilience over the last few years compared to the life sector, and its premium volume is expected to grow by 4.4% to KRW133.8tn in 2024. The growth will be supported by long-term personal accident and health insurance, general property and casualty (P&C) insurance, and retirement annuities.
General P&C insurance will remain a strong driver of growth, although it still accounts for a small portion of the entire non-life market. Its premiums are expected to grow by 5.2% in 2024, and firm growth momentum will come from the casualty lines of business backed by liability insurance amid increased awareness of the importance of liability protection for companies and the expansion of compulsory insurance. A