South Korea Insurance Market Intelligence: 2011 Edition

Date: January 1, 2011
Pages: 26
Price:
US$ 600.00
Publisher: Koncept Analytics
Report type: Strategic Report
Delivery: E-mail Delivery (PDF)
ID: S0915E94A36EN
Leaflet:

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South Korea Insurance Market Intelligence: 2011 Edition
The South Korean insurance market has undergone several changes since the deregulation of life insurance sector in 1987. The deregulation of market led to the entry of foreign insurers in the South Korean market in the form of joint ventures with local companies or the acquisition of domestic players. Life insurance market accounts for a larger share of the South Korean insurance business. The domestic consumer’s slow uptake in general insurance products has restricted non-life insurance business growth.

Despite the global economic slowdown, annual insurance premiums maintained a high growth trend in 2009 due to changes in the financial environment as well as diversifying consumer needs. The on-going demand for after-retirement protection-type products as well as health insurance products, including accident and illness, and medical expense coverage products are expected to drive this growth. In life insurance sector, sales of both annuities and savings insurance products are in high demand among consumers. Non-life insurance premiums growth was mainly driven by growing demand for long term insurance and automobile insurance.

Samsung Life, Korea Life and Kyobo Life dominate the South Korean life insurance market, accounting for more than half of all life-insurance premiums in 2009 whereas Samsung Fire and Marine is the largest non-life insurer. Moreover adoption of IFRS (International Financial Reporting Standards) in 2011 and introduction of risk based capital system (RBC) are expected to strengthen risk management and improve financial prudence of insurers. It is expected that South Korean Insurance sector will grow in coming years on account of demand for new retirement pension scheme, health insurance policies and introduction of new products/policies with more benefits as well as protection.
1. INDUSTRY SNAPSHOT

1.1 Industry Structure
  1.1.1 Deregulation in 1987 led to entry of foreign players
  1.1.2 Regulated and supervised by FSC (Financial Services Commission)
1.2 Market Overview
  1.2.1 Market Size & Growth
  1.2.1 Changes in financial environment led to increase in overall premiums in 2009
  1.2.2 Rise in demand for after-retirement protection-type products and health insurance products
  1.2.3 Non-life premiums driven by long term insurance and automobile insurance
  1.2.2 Market Segments
    1.2.2.1 Life insurance dominated insurance sector
    1.2.2.2 Introduction of new pension service scheme create more opportunities for insurance companies
    1.2.2.3 Long term & automobile insurance as major segments of non-life insurance
  1.2.3 Market Density & Penetration
    1.2.3.1 Both insurance density and penetration declined in 2009 compared to 2008
  1.2.4 Market Share
    1.2.4.1 Samsung Fire and Marine as largest non-life insurer on basis of assets in 2009
    1.2.4.2 Samsung Life, Korea Life and Kyobo Life continue to be the dominant market players

2. INDUSTRY ANALYSIS

2.1 Industry Developments
  Amendments to Insurance Business Act
  Introduction of Risk Based Capital System (RBC)
  Adoption of IFRS (International Financial Reporting Standards)
  Expansion of Retirement Pension System
  Improved Individual Indemnity Health Insurance System
  Improvement of Financial Infrastructure
  Establishment of DAS Legal Expenses Insurance
  Life Insurers as Payment Services Providers
  Hike in Health Insurance Premiums by 6%
  South Korea's Life Insurers on IPO Spree
  Regulatory Approval to ERGO Insurance Group
  Hanwha Non-Life Acquired First Fire & Marine
  Meritz Fire Aims To Become Holding Firm 15
2.2 Market Drivers
  Rising Household Expenditure and Disposable Income
  Average Monthly Disposable Income per Household: 2004-2009
  Growth in Motor Market
  Rising Health Care Costs and Demand for Long Term Care (LTC)
  Introduction of Retirement Pension System
  New Life Insurance Products with Exclusive License Right

3. COUNTRY ANALYSIS: RISK ASSESSMENT

3.1 Political Environment
3.2 Macro-economic Indicators: Current and Projections

4. INDUSTRY OUTLOOK: FORECAST AND PROJECTIONS

4.1 Amendments in insurance business structure les to slower growth in coming years
4.2 In Non-Life, Long-term and Motor Insurance are expected to Continue Recording Growth
4.3 Health Insurance is expected to Register High Growth in the Coming Years

LIST OF CHARTS:

South Korean Annual Insurance Premium - 2002-2009
South Korean Insurance Premium Share (%) by Segment – 2009
South Korean Insurance Premium by Segment – 2002-2009
South Korean Life Insurance Premium Share (%) by Segment – 2009
South Korean Individual Insurance Premium Share (%) by Segments – 2009
South Korean Non-Life Insurance Premium Share (%) by Segment – 2009
South Korean Insurance Density (US$) - 2002 – 2009
South Korean Insurance Penetration - 2002 – 2009
South Korean Major Non-Life Insurers’ Market Share – 2009
South Korean Major Life Insurers’ Market Share – 2009
Average Monthly Expenditure per Household - 2002-2009
South Korean Number of Motor Vehicles Registered - 2003 – 2009
South Korean Domestic Motor Sales - 2003-2009
Ratio of Auto Premiums to Overall Premiums of Non-life Insurers (%): 2009
Forecast: South Korean Insurance Industry - 2009A - 2013F
Forecast: South Korean Life & Non-Life Insurance Sectors - 2008A - 2012F

LIST OF TABLES:

Average Monthly Disposable Income per Household - 2004-2009
Average Monthly Expenditure per Household on Medical Care -2002-2009
National Health Insurance Premiums - 2002-2009
Retirement Pension Reserve in KRW 100 Million - 2009
New Life Insurance Products with Exclusive License Rights - 2008-2009
Key Macroeconomic Indicators - 2009A – 2013F
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South Korea Insurance Report Q3 2011 US$ 1,175.00 Jul, 2011 · 84 pages
South Korea Automotive Intelligence Quarterly US$ 625.00 Dec, 2011 · 60 pages

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