South Korea's insurance industry is expected to grow at a compound annual growth rate (CAGR) of 3.4% from 2025 to 2029, rising from $167.1bn in 2025 to $191.2bn by 2029, according to GlobalData.
This growth is primarily driven by demographic changes and the adoption of new reporting standards, including IFRS17 and K-ICS.
GlobalData noted that the introduction of IFRS17 and K-ICS will improve solvency standards, enhance transparency, and encourage insurers to diversify their product offerings.
It also highlighted that demographic shifts, such as an aging population and falling fertility rates, are reshaping consumer demand for insurance products.
The industry is expected to grow by 2.2% in 2025, with life insurance accounting for 84% of direct written premiums and general insurance making up the remaining 16%.
The life insurance sector is set to grow by 1.8% in 2025, supported by South Korea’s ageing population.
General insurance growth will be fuelled by rising demand for coverage against fire and natural disasters, with over 30,000 fire accidents reported in 2024, driving the need for fire and natural hazard insurance.
The expansion of electric vehicle charging infrastructure has also introduced new fire-related risks.
Furthermore, liability insurance demand is expected to increase due to regulatory changes and mandatory coverage requirements for individuals and businesses. General insurance is projected to grow at a compound annual growth rate (CAGR) of 5.1% from 2025 to 2029.