The Ministry of Health and Welfare has indicated significant changes to the country's health insurance payment standards in a bid to improve financial stability and prevent fraud.
The average W&I insurance premium rate increased slightly in 2022 in Japan to 2.4% from 2.3% year on year, whereas the hike was bigger in South Korea, climbing to 3.1% in 2022 from 2.4% in 2021, notes Marsh which is the world's foremost insurance broker.
South Korea's fifth-biggest life insurer, Tong Yang Life Insurance (TYL), has seen its return on equity improved to 10% in 2021, from about 5% in 2020. The ROE remained around 10% on an annualised basis in 9M22, says Fitch Ratings.
The South Korean financial authorities are considering allowing non-banking financial companies, including insurers, to engage in banking services such as payment settlement and loans in a move to boost competition in an industry that is led by five top banks.
Kyobo Life Insurance, one of Korea's top three life insurers, announced on 8 February that it would form a financial holding company in the second half of 2024 to expand its business portfolio into other financial sectors.
2023 is going to be a transformative year for the Korean insurance industry given that major regulatory changes are taking effect and their implications could be significant across the insurance sector, says Korean Re in a blog.
The CEOs of local insurance companies are urged to pay extra attention to risk management and market stability while refraining from over-expansion.
The latest trends in the Korean pet insurance industry are long-term insurance plans and sales in offline channels, says Shim Jun-won, CEO of Petfins, a local pet insurer.
The government will begin earnest discussions to boost the sustainability of the national health insurance system and plans to unveil reform measures by September.
The life insurance sector in South Korea will seek deregulation for digital innovation in whole sectors of the insurance industry this year, according to Korea Life Insurance Association chairman Chung Hee-soo.