South Korea Insurance Report

Providing expert analysis, independent forecasts and competitive intelligence on the insurance industry.

Report includes: BMI Industry View, Industry SWOT Analysis, Industry Forecasts, BMI's Insurance Risk Reward Index and Company Profiles.

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South Korea Insurance Report
Product Price
$1,295.00

BMI View: Both the life and the non-life segments of South Korea's sophisticated insurance sector should benefit from the ageing of the population. We have revised upwards our forecasts for life insurance and, in non-life segment, motor vehicle insurance.

Headline Insurance Forecasts (South Korea 2013-2020)
2013 2014 2015e 2016f 2017f 2018f 2019f 2020f
BMI/KIRI
Gross life premiums written, KRWbn 106,084.28 110,575.00 115,048.27 120,760.48 128,132.97 136,161.51 144,913.90 154,466.24
Gross life premiums written, KRW, % y-o-y -8.0 4.2 4.0 5.0 6.1 6.3 6.4 6.6
Gross life premiums written, USDbn 96.91 105.01 98.33 99.60 105.68 115.88 128.81 140.42
Gross life premiums written, USD, % y-o-y -5.3 8.4 -6.4 1.3 6.1 9.7 11.2 9.0
Gross non-life premiums written, KRWbn 71,420.76 76,575.00 81,544.39 87,834.49 95,909.22 104,701.88 114,288.20 124,751.02
Gross non-life premiums written, KRW, % y-o-y 4.2 7.2 6.5 7.7 9.2 9.2 9.2 9.2
Gross non-life premiums written, USDbn 65.25 72.72 69.70 72.44 79.10 89.11 101.59 113.41
Gross non-life premiums written, USD, % y-o-y 7.2 11.5 -4.2 3.9 9.2 12.7 14.0 11.6

Key Updates And Forecasts

  • South Korea is in many ways the archetypal North Asian insurance sector. Life insurance has long played a central role in the economy and society as a conduit for organised savings. This is in a country where the savings rate has typically been high and the provision of social security by the state has been limited. Two factors set the insurance sector apart from others. One is the fact that long-term savings and protection products are also a very important business for South Korea's non-life companies, which effectively operate as composites. The other is that many of the leading companies benefit from their association with the Chaebol corporate groups which dominate South Korea's economy.

  • Recent results from the largest insurers confirm that they are benefiting from a number of factors. In particular, life insurance is seen as an attractive opportunity relative to other savings and investments, given very low interest rates and the volatility of financial markets. Over the long-term, demand for retirement income products will grow thanks to the ageing of the population. Relative to Q116, we have revised our forecasts upwards. Gross life premiums are forecast to reach KRW154,466bn in 2020. Growth will continue into 2021 and beyond.

  • The ageing of the population should also boost demand for long-term savings and protection products that are offered by the non-life insurers. Demographic changes should also support the development of health and personal accident insurance. Thanks to an upwards revision to our forecasts for car sales, we think that the motor vehicle insurers will benefit from greater values than we did in Q116. We forecast gross non-life premiums to reach KRW124,751bn in 2020.

BMI Industry View
5
Table: Headline Insurance Forecasts (South Korea 2012-2019)
5
SWOT
7
Insurance
7
Industry Forecast
9
Life Premiums Forecast
9
Table: Life Premiums (South Korea 2012-2019)
12
Table: Life Insurance Claims (South Korea 2007-2014)
13
Non-Life Premiums Forecast
13
Table: Non-Life Premiums (South Korea 2012-2019)
16
Table: Non-Life Insurance Claims (South Korea 2008-2014)
17
Non-Life Sub-Sector Forecast
18
Table: Non-Life Insurance Premiums by Product Line (South Korea 2012-2019)
24
Industry Risk Reward Ratings
26
Asia Pacific Industry Risk/Reward Index
26
Table: Asia Pacific Insurance Risk/Reward Index
27
Market Overview
28
Life Market Overview
28
The Product Offering
28
Competitive Landscape
29
Table: Company Performance: Life Insurance Market (USDmn) 2007-2012
31
Table: Company Performance: Life Insurance Market (%) 2007-2012
32
Non-Life Market Overview
33
The Product Offering
33
The Competitive Landscape
33
Table: Company Performance: Non-Life Insurance Market (USDmn) 2011-2012
35
Table: Company Performance: Non-Life Insurance Market (%) 2011-2012
36
Company Profile
37
Hanwha Life
37
Samsung Life
40
Samsung Fire & Marine
43
Methodology
46
Industry Forecast Methodology
46
Risk/Reward Index Methodology
49
Table: Indicators
51
Table: Weighting of Indicators
52

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.

Key Benefits

  • 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).

Coverage

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.

Company Profiles*

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.

Sources

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.