Credit: Andrii Yalanskyi/ shutterstock.com.

The general insurance industry in South Korea, in terms of direct written premiums, is expected to grow at a CAGR of 5.2%, from KRW34.1trn ($26bn) in 2024 to KRW43.5trn ($33.3bn) in 2029.

The growth is driven by by economic recovery, mandatory insurance regulations, and a heightened focus on data protection.

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This is according to GlobalData, which also forecast that South Korea’s general insurance industry is estimated to grow by 5% in 2024, driven by compulsory lines of insurance and increased awareness for data protection, leading to higher demand for liability insurance products.

Aarti Sharma, insurance analyst at GlobalData, comments: “The South Korean general insurance industry may face potential premium price increases in the short-term due to the escalating geopolitical crisis in the Middle East that can potentially influence the prices of important commodities, given the country’s high reliance on trade.”

Motor insurance is the largest line of business, which is expected to account for 59.9% share of the direct written premiums in 2024. It is expected to witness a slower growth of 1.7% in 2024 due to a decline in vehicle sales.

Liability insurance is the second leading line with a 13.7% direct written premiums share in 2024. It is expected to grow by 12.2% in 2024, propelled by favorable regulatory developments and mandatory insurance classes for both individuals and businesses, encompassing third-party liability and professional indemnity policies.

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Sharma concludes: “The general insurance industry in South Korea is poised for steady growth, driven by an economic recovery and mandatory insurance requirements. The industry’s resilience and adaptability to changing market conditions and expanded scope for liability insurance are likely to contribute to the industry’s growth trajectory in the coming years.”