Ageing Population to Boost Insurance Uptake in South Korea

South Korean Insurance Industry to See Growth: The South Korean insurance industry is projected to reach $191.2b in direct written premiums (DWP) by 2029, with a 3.4% compound annual growth rate, due to the ageing population driving demand for various insurance types, according to GlobalData.

2024 – 2025 Forecasts and Growth Drivers: In 2025, DWPs are forecasted at $167.1b. The industry contracted in 2023 but is expected to rebound in 2024 with economic recovery and an ageing population. Demographic changes will boost health and retirement pension product demand. Life insurance and pension will account for 84% of 2024 premiums and grow at a 3.1% CAGR from 2025 – 2029. Health insurance demand will rise with more life – threatening diseases. General insurance, 16% of 2024 DWP, will grow 4.9% in 2024 and at a 5.1% CAGR from 2025 – 2029.

Segment – specific Growth and Challenges: Life insurance will grow 0.5% in 2024 after a 2023 contraction. Motor insurance may see flat growth in 2024 due to falling vehicle sales from weak consumer sentiment and high interest rates. South Korea’s natural – catastrophe prone status will boost demand for fire and hazard policies.

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