Sales of variable insurance policies in South Korea more than doubled in the first quarter of this year as local stock markets reported robust gains, industry data show.
The first premium for variable insurance policies, which invest part of the funds they control in stocks and bonds, rose to KRW545.5 billion (US$477.2 million) during the January-March quarter, compared with KRW215.2 billion for the same three-month period last year, reported the Yonhap News Agency citing data by the Korea Life Insurance Association.
South Korea's main Korea Composite Stock Price Index has gained some 17% so far, compared with the first trading day of this year.
Life insurers have been luring customers with variable insurance policies, pointing out that such products could guarantee a high return.
Customers also appear to invest in variable insurance policies as a hedge against inflation amid record low interest rates, industry watchers say.