Insurance companies in South Korea reported investments totalling KRW31.3tn ($22.7bn) in real estate overseas at the end of December 2023, holding the largest share of 54.4% among all categories of financial institutions in the country, according to data released by the Financial Supervisory Service (FSS).
Korea's insurance market has seen a lot of growth and innovation over the past few years, but there is still work to be done to improve the underlying health of the industry. Munich Re's Messrs Roland Eckl and Michael Hauer elaborate.
Insurance companies in South Korea saw their combined net profit shrink more than 11% from a year earlier in the first three months of the year, according to data from the Financial Supervisory Service.
Life insurance companies are increasingly targeting the "senior care" market.
More insurance customers are surrendering their policies for cash due to financial burdens exacerbated by high inflation and costly borrowing rates.
The National Tax Service, under the Ministry of Economy and Finance, is looking into the reasons why corporate tax revenues have failed to increase proportionately despite insurers recording their highest-ever net profits after the adoption of IFRS 17 in 2023.
Lockton Korea is focusing on organic growth, in line with the group's management approach and plans to achieve 20% annual growth under the latest plan, according to Mr Ben Son, CEO of the brokerage.
Moody's Ratings says that its outlook for South Korea's (Aa2 stable) life insurance industry is stable, reflecting the global credit agency's expectation that growth in contractual service margins (CSM), driven by a focus on protection products, will support capitalisation and profitability, and prudent investment strategies will underpin stable asset quality at life insurers in the next 12-18 months.
The overseas branches of South Korean insurance companies saw their combined net income turn to red last year, according to the Financial Supervisory Service (FSS).
A majority stake in Lotte Insurance, South Korea's seventh biggest non-life insurer, has been placed for sale for over KRW2tn ($1.45bn).