South Korea Insurance Report

Published 30 June 2015

  • 69 pages
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  • Includes 3 free updated quarterly reports
$1,295.00
South Korea Insurance Report

BMI View: We have a favourable outlook for South Korea's life and non-life insurance segments over the next five years. As both segments are considerably concentrated due to the domination of offshoots of the chaebol corporate groups, they are characterised by disciplined underwriting and absence of brutal price competition, which will continue to enable steady growth in the foreseeable future. We identify future investment opportunities in health insurance in particular , as a result of demographic changes and rising private health expenditures.

South Korea's life insurance comprises the larger segment of the country's overall insurance sector, accounting for nearly 59% of total premiums written in 2015. Non-life insurance, however, will grow at a considerably higher rate over the next five years, which will lead to life insurance shrinking to some 54% in 2019. Nonetheless, life insurance is set to grow at an average annual rate of 6.1% between 2015 and 2019, and there are a number of ongoing developments which underlie this trend. First and foremost, South Korea's population has been experiencing a change in its demographic structure. As the average life expectancy of South Koreans is steadily increasing, in part due to better accessible healthcare, and the country is seeing its 65+ population grow, increasingly more South Koreans will seek more security in the form of life insurance. In addition, as the population's GDP per capita is growing, and private disposable income is rising, more (retirement-aged) people are in a better position to afford life solutions. The coming years will therefore continue to provide attractive opportunities for investment in the life segment.

Accounting for 41.4% of total insurance premiums written in 2015, non-life insurance is considerably smaller than its life counterpart. However, there is significant scope for future growth within this segment, as has become evident from our analysis as well as the major companies'...

BMI Industry View
7
SWOT
9
Insurance
9
Political
11
Economic
12
Operational Risk
13
Industry Forecast
15
Life Premiums Forecast
15
Life Premiums
15
Table: Gross Life Premiums Written (South Korea 2012-2019)
17
Life Insurance Claims and Assets
18
Table: Life Insurance Claims (South Korea 2007-2014)
18
Table: Assets (South Korea 2007-2014)
19
Life Insurance Drivers
20
Table: Life Expectancy by Gender (South Korea 2012-2019)
20
Table: Demographic Breakdown (South Korea 2012-2019)
21
Non-Life Premiums Forecast
22
Non-Life Premiums
23
Table: Gross Non-Life Premiums Written (South Korea 2012-2019)
23
Non-Life Claims
24
Table: Non-Life Insurance Claims (South Korea 2007-2014)
25
Table: Non-Life Insurance Claims by Line (South Korea 2007-2014)
25
Non-Life Assets
26
Table: Assets (South Korea 2007-2014)
26
Non-Life Sub-Sector Forecast
27
Table: Non-Life % Breakdown (South Korea 2012-2019)
27
Motor And Transport Insurance
28
Table: Motor Vehicle Insurance (South Korea 2012-2019)
29
Table: Insurance Key Drivers, Autos (South Korea 2012-2019)
30
Table: Transport Insurance (South Korea 2012-2019)
31
Property Insurance
31
Table: Property Insurance (South Korea 2012-2019)
32
Credit/ Financial Guarantee Insurance
32
Table: Credit/Financial Guarantee Insurance (South Korea 2012-2019)
33
Health Insurance
33
Table: Insurance Key Drivers, Private Health Expenditure (South Korea 2012-2019)
34
Industry Risk Reward Ratings
35
Asia Pacific Industry Risk/Reward Index
35
Table: Asia Pacific Insurance Risk/Reward Index
36
Market Overview
37
Life Market Overview
37
Table: Life Insurance Market Shares (USDmn), 2006-2012
39
Table: Life Insurance Market Shares (%), 2006-2012
40
Non-Market Overview
41
Table: Non-Life Insurance Market Shares (USDmn), 2011-2012
43
Table: Non-Life Insurance Market Shares (%), 2011-2012
45
Company Profile
46
Hanwha Life
46
Hyundai Marine & Fire Insurance
49
Samsung Fire & Marine
52
Samsung Life
55
Demographic Forecast
58
Table: Population Headline Indicators (South Korea 1990-2025)
59
Table: Key Population Ratios (South Korea 1990-2025)
59
Table: Urban/Rural Population & Life Expectancy (South Korea 1990-2025)
60
Table: Population By Age Group (South Korea 1990-2025)
60
Table: Population By Age Group % (South Korea 1990-2025)
61
Methodology
63
Industry Forecast Methodology
63
Risk/Reward Index Methodology
66
Table: Indicators
68
Table: Weighting of Indicators
69

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.

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