Non-life insurance companies are considering joint reinsurance to share business with reinsurers as the Bank of Korea lowered interest rates for the second consecutive month in November 2024.
NongHyup Property and Casualty Insurance Company's (NH P&C) prospective underwriting performance is expected to remain supported by its contractual service margin (CSM) base and the improved underwriting fundamentals of government policy insurance lines, albeit with moderate volatility, says AM Best.
The underwriting performance of Seoul Guarantee Insurance Company (SGI) is expected to normalise from 2025 with a gradual interest-rate cut, says Fitch Ratings.
South Korea's non-life insurance market is expected to post moderate growth over the next 12 months, mainly attributable to insurers' efforts to expand the long-term insurance line amidst heightened competition for high-margin protection-type products, according to Ms Chanyoung Lee, director, at AM Best.
KB Insurance Co (KBI), South Korea's fourth biggest non-life insurer, maintains an adequate operating performance as adequate, with its return-on-equity and combined ratios being largely in line with its domestic industry average, according to an assessment by AM Best.
Pacific Life Re and Kakao Pay Insurance have signed a Memorandum of Understanding (MoU) to provide sustainable and innovative life insurance solutions in South Korea.
Called "Jongbo Inheritance Insurance", the product is a life insurance that can manage funds for inheritance and utilise various funds, focusing on the original value of life insurance and providing high death guarantees.
Korean Reinsurance will likely maintain largely stable underwriting performance over the next two years, says S&P Global Ratings. It expects the reinsurer's combined ratio to be 93%-95%, based on IFRS 17, over the next two years.
Financial institutions in South Korea, including insurance companies, have been busy with plans to attract customers who wish to switch the companies managing their pension accounts.
Reinsurance Group of America (RGA), a leading global life and health reinsurer, has reached an agreement with Tongyang Life Insurance to increase coverage of an existing co-insurance contract originally executed in June 2024. Under this arrangement, coverage is expanded by an additional KRW150bn ($109m).