South Korea: Premium growth to slow next year
Source: Asia Insurance Review | Nov 2016
South Korea’s insurance industry is expected to face slower premium growth next year, mainly due to low interest rate trends, slow economic growth and ageing society, according to a report by the Korea Insurance Research Institute.
The premium growth rate is likely to fall to 2.2% next year from a forecast 3.2% this year. It was 5.5% in 2015, the report showed.
Life insurers are expected to see growth of 1.7% next year from 2.7% this year. P&C insurers would see their premium growth dip to 2.9% next year from 3.8% this year.
“The demand for insurance policies is falling due to low economic growth linked with the ageing society and low interest rates,” said Im Jun-hwan, Director of Research, Planning and Coordination at the institute.