BMI View: In line with various recent and anticipated developments within South Korea's insurance industry, we foresee both life and non-life insurance segments to achieve steady growth rates through the 2015-2018 forecast period. The growth in life premiums written will for a large part be driven forward by an increase in private healthcare expenditures resulting from the ageing population and an increase in chronic diseases. The expected rise of the non-life segment, which is set to overtake the life segment in market share in the near future, is underpinned by rapidly growing healthcare insurance premiums, paired with the growing motor vehicle sub-segment due to governmental stimulations. Major players in the insurance industry have considerable pricing power, and they have altered their distribution strategies and product portfolios to enhance profitability. Overall, South Korea's insurance industry provides significant opportunities for future investment.
With the continuously falling interest rates (from already low levels), 2015 will likely pose a challenging period for insurers in both major segments of the South Korean insurance market to maintain the profitability of some of the products that they are offering. Regulatory decisions have increased costs and interrupted telemarketing sales. In the life segment, new business premiums have fallen sharply, which is because they were elevated by impending tax changes in H113. In the non-life segment, the general weakness of the economy has hit the property insurance sub-sector, among others .
Nevertheless, there have been a number of positive trends and developments. The non-life companies are continuing to benefit from growing demand for long-term products. The ageing of South Korea's population should continue to underpin an increase in the need for private health insurance. Above all, the companies themselves are taking measures to boost profitability (by changing distribution channels, by focusing...
The South Korea Insurance Report has been researched at source and features Business Monitor International (BMI)'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.
Individual analysis of both Life and Non-Life insurance sector developments and prospects across developed states and emerging markets - supported by BMI's global industry growth forecasts. This is followed by an in-depth evaluation of region- and country-specific trends, focusing on BMI's country-by-country market growth data.
Business Environment Rankings
BMI's Insurance Business Environment Rankings provide a country-comparative Risk-Reward Rankings index aimed at investors (Life and Non-Life) in the insurance market.
The rankings methodology makes sophisticated use of over 40 industry, economic and demographic data points and is part of BMI's integrated Country Risk-Industry Rankings products.
BMI Industry Forecasts
Historic data series (2008-2012) and forecasts to end-2018 for key industry and economic indicators (see list below) supported by explicit assumptions, plus analysis of key risks to the main forecasts. Indicators include:
Premiums: Total (US$mn), growth (% y-o-y), penetration (% of GDP), density (US$ per capita) for Life and Non-Life sectors, and total premiums.
Life: Data on gross written premiums for all major non-life segments (e.g. motor, fire, work).
Non-life: Data on gross written premiums for all major life segments (e.g. life, retirement).
Economic: Nominal GDP (US$bn), real GDP growth (%), GDP per capita (US$), population (mn), unemployment (%), exchange rate (against US$).
Competitive Landscape & Rankings
Illustration of the insurance industry via rankings tables comparing gross written premiums by company (US$mn) and market share (%). This chapter also includes in-depth regional analysis of the market position, business strategies and investment potential of the leading insurance companies.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape. 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.