The general insurance sector in South Korea is poised for significant growth. GlobalData predicts a compound annual growth rate (CAGR) of 5.2% from 2024 to 2029, with direct written premiums expected to hit $33.3b. In 2024, the sector is estimated to see a 5% increase, driven by economic recovery, regulatory requirements, and a rising demand for liability and health insurance. However, Aarti Sharma, an Insurance Analyst at GlobalData, warns of potential premium hikes in the short-term due to the Middle East geopolitical crisis, considering South Korea’s heavy trade dependence.
Motor insurance, which dominates the market with a 59.9% share, is set for a modest 1.7% growth in 2024, mainly due to declining vehicle sales. But inflation-induced rising repair costs will likely fuel a 4.5% CAGR over 2025 – 2029. Liability insurance, the second-largest segment with a 13.7% market share in 2024, is expected to expand by 12.2% this year. Regulatory changes such as the Virtual Asset User Protection Act and revisions to the Personal Information Protection Act are spurring the demand for mandatory liability policies, and it’s projected to grow at an 8.1% CAGR until 2029.
Non-life personal accident and health (PA&H) insurance, spurred by an ageing population, increasing medical costs, and longer public health service wait times, is forecast to grow by 14% in 2024 and maintain a 5.1% CAGR from 2025 – 2029. The other segments, including property, financial lines, marine, aviation, and transit insurance, make up around 19.5% of the market in 2024. Despite geopolitical challenges, the South Korean general insurance market’s growth path remains robust, underpinned by regulatory initiatives and changing consumer demands.
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