The net profits of life insurers in South Korea are declining and those of non-life insurers have worsened as well against a backdrop of low economic growth, low interest rates and an ageing population.
South Korea's national health insurance scheme is expected to post a deficit of KRW3.2tn ($2.7bn) in 2019, sharply widening from a year earlier, as the country provides greater coverage for various medical services, reported Yonhap News Agency.
The economic outlook of South Korea for the upcoming year is, in one word, 'blue'.
Elderly South Koreans' medical spending covered by the state health insurance programme exceeded the KRW30tn ($25.9bn) mark to reach a record high in 2018.
Increasing losses and intense competition in the automobile and long-term insurance lines, as well as rising interest obligations, may pressure the Korean non-life insurance sector's overall profitability, says AM Best.
Kakao Corp, which operates South Korea's largest messenger app and online bank, is teaming up with Samsung Fire & Marine Insurance to form a digital insurer.
Health insurance spending covering smoking and drinking-related treatments reached KRW13tn ($11bn) in the years 2016-2018.
The Korean government will revise regulations and set up traffic infrastructure for fully autonomous vehicles, as well as lay out insurance rules and drivers' responsibilities, by 2024.
About 500,000 foreigners and overseas Koreans subscribed to the National Health Insurance Service by the end of September after health insurance coverage became mandatory for foreigners residing in the country with effect from 16 July.
The Financial Services Commission (FSC) in South Korea has decided on a 12-month delay in implementing the International Financial Reporting Standards 17 (IFRS 17) for insurers, according to a report from the Yonhap News Agency. This comes after the global insurance industry called for more time to adopt to the global accounting standards which are originally set to be effective in January 2021.