A survey by the Korea Times revealed that a language barrier prevents foreign residents in South Korea from purchasing life insurance policies, despite a rising demand.
South Korea is a tough market for foreign insurers, and success in the country is a sure sign that the same can be achieved in other countries, according to AXA Korea CEO Gilles Fromageot.
Language remains a major barrier to foreigners signing up for insurance policies in South Korea despite a steady rise in foreign residents in the country.
Korean insurers have been advised to diversify their foreign exchange hedging strategies as hedging costs soar due to the reversal of interest rates between the US and South Korea.
South Korea's top life insurers reported the sharpest fall in net profit in the first six months of this year, notes Moody's Investors Service.
South Korean life insurers' net profit and premium income were down by 32.4% and 1%, respectively, in 1H2019 from a year ago, according to preliminary data from the Financial Supervisory Service (FSS). This reflects lower earnings from both insurance operations and investments amid slower economic growth, continued product mix shift and lower interest rates, says Moody's Investors Service.
South Korea's non-life insurers are seen as being better positioned than their life counterparts to cope with the impact of the International Financial Reporting Standards 17 (IFRS 17) accounting standard and K-Insurance Capital Standard (K-ICS) solvency regime when they take effect, says AM Best.
South Korean life insurance companies saw their profits fall sharply in the first half of this year. The net profits of the 24 domestic life insurance companies totalled KRW2.13tn ($1.75bn) in 1H2019, down by 32.4% from KRW3.15tn a year earlier.
The Seoul Organising Committee for the 30th East Asian Insurance Congress (EAIC) has launched its official website for the Congress.
Major non-life insurers in Korea are spending more on marketing fees in order to boost market capitalisation, raising concerns that consumers will end up paying higher premiums, reported The Korea Times.