A Report on the Life Insurance Industry in South Korea
In terms of gross written premium, the South Korean insurance industry is the world’s eighth-largest. However, within the Asian region it is the third-largest, behind only japan and China. The industry has grown over the last decade due to an increase in the public’s awareness of insurance products and South Korea’s strong economic development, which resulted in the country having the highest gross insurance written premiums per capita in Asia. Notably, although the value of the segment declined for the first time in 2009 due to the financial crisis, it recovered in 2010 due to diversifying consumer needs.
Although life insurance has traditionally been one of the most popular forms of saving in South Korea, the segment is now mature and has limited growth opportunities compared to corresponding segments in China and India. The life segment is expected to record robust growth over the next five years, driven by its rapidly aging population and demand for retirement protection products. The segment’s written premium value is expected to increase from KRW100.2 trillion (US$89.0 billion) in 2012 to KRW142.9 trillion (US$134.5 billion) in 2017, after recording a CAGR of 7.3% between now and 2017.
Complete report available @ http://www.rnrmarketresearch.com/life-insurance-in-south-korea-key-trends-and-opportunities-to-2017-market-report.html .
The popularity of bancassurance in distributing life insurance is expected to support segmental growth over the next five years. The bank’s proactiveness in cross-selling life insurance products will support the growth. Following an increase in the accessibility of formal banking services for the South Korean population, bancassurance grew between 2008 and 2012. By 2012, it had become the largest distribution channel in the segment, representing 47.6% share of South Korea’s total life insurance new business written premium. Although there is no vertical integration between banks and insurers in South Korea, the country’s
Although life insurance has traditionally been one of the most popular forms of saving in South Korea, the segment is now mature and has limited growth opportunities compared to corresponding segments in China and India. The life segment is expected to record robust growth over the next five years, driven by its rapidly aging population and demand for retirement protection products. The segment’s written premium value is expected to increase from KRW100.2 trillion (US$89.0 billion) in 2012 to KRW142.9 trillion (US$134.5 billion) in 2017, after recording a CAGR of 7.3% between now and 2017.
Complete report available @ http://www.rnrmarketresearch.com/life-insurance-in-south-korea-key-trends-and-opportunities-to-2017-market-report.html .
The popularity of bancassurance in distributing life insurance is expected to support segmental growth over the next five years. The bank’s proactiveness in cross-selling life insurance products will support the growth. Following an increase in the accessibility of formal banking services for the South Korean population, bancassurance grew between 2008 and 2012. By 2012, it had become the largest distribution channel in the segment, representing 47.6% share of South Korea’s total life insurance new business written premium. Although there is no vertical integration between banks and insurers in South Korea, the country’s