Non-Life Insurance Market Thriving in South Korea

The non-life insurance sector in South Korea ishigh-end and larger car segments. Moreover, during
growing at a good pace, mainly driven by long termthe forecast period (FY 2009 – FY 2012),
insurance and automobile insurance. As a result, thepremiums are anticipated to grow at a CAGR of
share of non-life insurance surged from 30.33% in FYover 15% as the economic recession fades away.
2007 to an estimated 33.23% in FY 2008. Moreover,Consequently, there will be an increase in car sales in
the sector is forecast to grow at a CAGR of overthe latter years of forecast period.
9% between FY 2009 and FY 2012 due to theTo better gauge the future success of the non-life
perennial demand in private health insurance.insurance in the South Korean insurance market, our
We have found that long term insurance sector isreport “South Korean Insurance Industry
steadily growing in South Korea, accounting forForecast to 2012” provides results and analysis
around 50% of total direct premiums collected. Theof various non-life insurance products like Fire
premiums are forecasted to grow at a CAGR ofinsurance, Marine insurance, guarantee insurance,
over 6% during FY 2009 to FY 2012. The on-goingcasualty insurance, automobile insurance, long term
demand for after-retirement protection-typeinsurance and private annuity insurance.
products as well as health insurance products,In addition to this, since deregulation in 1987 the
including accident and illness, and medical expensenon-life insurance sector has seen many new
coverage products are expected to drive thisentrants. However, the leading four - Samsung Fire
growth.& Marine, Hyundai Fire & Marine, Dongbu
Besides, premiums collected in automobile insuranceFire & Marine and LIG insurance - still dominate
increased at a CAGR of over 10% between FY 2005the market, accounting for around 68% of all non-life
and FY 2008 as a result of increase in imported carinsurance assets as of the end of 2008.
sales amidst the shift in automobile market to