BMI View: We maintain our favourable medium-term outlook for South Korea's life and non-life insurance segments on the back of demographic changes, in particular, which will lead to higher demand long-term savings solutions and health insurance. While both segments remain dominated by indigenous players, there are some opportunities for fore ign players to enter the market via acquisitions and joint ventures with local insurers.
Life insurance in South Korea is the larger segment of the country's overall insurance sector, accounting for about 59% of premiums written in 2015. Although we expect this share to decline over our five-year forecast period, as non-life sector growth outpaces that of the life sector, life insurance will continue to grow in absolute terms. We believe this comes primarily on the back of the country's ageing population, with the country's 65+ population forecast to rise from 13.1% to 15.1% of the population between 2015 and 2019. Importantly, adding over 1.1mn people to this age bracket over the same period. The average life expectancy will also grow on the back of better access to healthcare. As a result of these trends, demand for longer-term savings solutions from the South Korean population will grow. We highlight a growing domestic economy will provide them with the means to purchase life insurance products, with GDP per capita growing at an average rate of 5.2% per annum over our five-year forecast period and disposable income also rising. This will create plenty of opportunities for life insurers in South Korea.
For non-Life insurance, the smaller of the two segments, the scope for future growth is significant. While motor vehicle insurance - currently the largest individual line in South Korea's non-life market - has traditionally been and will continue to remain important, other lines will see much stronger growth. Among these will be health insurance and certain long-term products, which have been showing strong growth rates...
The South Korea Insurance Report has been researched at source and features BMI Research's independent assessment and forecasts for the insurance sector. It examines industry developments, key growth drivers and risk management projections, including the macroeconomic situation, government policy, regulatory environment and the level of development and potential for growth, broken down by line. Leading insurers are profiled, covering premiums, products and services and competitive positioning.
BMI's South Korea Insurance Report provides professionals, consultancies, government departments, regulatory bodies and researchers with independent forecasts and regional competitive intelligence on the Korean insurance industry.
- Benchmark BMI's independent insurance industry forecasts for South Korea to test other views - a key input for successful budgeting and strategic business planning in South Korea's insurance market.
- Target business opportunities and risks in South Korea through our reviews of latest industry trends, regulatory changes and major deals, investments and macroeconomic developments.
- Exploit latest competitive intelligence on your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
BMI Industry View
Summary of BMI’s key industry forecasts and views, covering the Life and Non-Life segments, the evolving competitive landscape and business operational risks.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the insurance sector and within the broader political, economic and business environment.
BMI Industry Forecasts
Historic data series (2005-2014) and forecasts to end-2019 for key industry indicators, supported by explicit assumptions, plus analysis of key risks to the main forecasts. Indicators include:
- Life/non-life Premiums: Total premium growth (USDmn), premium growth (% y-o-y), penetration (% of GDP), density (USD per capita) for Life and Non-Life sectors, claims reinsurance, and assets and liabilities.
- Non-life subsectors: Data on gross written premiums for all major Non-Life segments (motor, transport, property, personal accident, health, general liability and credit financial).
BMI’s Insurance Risk Reward Index
BMI’s Risk Reward Indices provide investors (Life and Non-Life) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide an indices of highest to lowest appeal to investors, with each position explained.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
Growth Drivers & Risk Management Projections
Key data and forecasts to end-2019 focusing on the growth drivers and downside risks to specific insurance lines including:
- Population: Male/female, by age group, active/pensionable/youth population % of total, urban/rural population % of total.
- Freight: Tonnage – air freight, rail freight, road freight, inland waterway.
- Motor: Fleet size by type of vehicle % change y-o-y.
- Epidemiology: Disease Adjusted Life Years and private health expenditure.
Market Overview & Rankings
Illustration of the insurance industry via rankings tables comparing gross written premiums by company (USDmn) and market share (%) for the top 20 players in both Life and Non-Life. This chapter also includes in-depth regional analysis of the market position, business strategies and investment potential of the leading insurance companies.
The insurance Reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.