Market Report, "South Korea Insurance Report Q2 2011", published

April 3, 2011 - PRLog -- Key Insights On South Korea's Insurance Sector

Writing in March 2011 we have been able to include final data for fiscal 2009 (ie: the year to March 31 2010) and numbers published by the regulator in recent months. We estimate that total premiums in fiscal 2010 (ie: the year to March 31 2011) will amount to KRW152,533,594mn. This includes non-life premiums of KRW56,337,603mn and life premiums of KRW96,195,991mn. In fiscal 2015, the corresponding figures are forecast to be KRW174,176,708mn, KRW80,696,320mn and KRW93,480,388mn. In terms of the key drivers that underpin our forecasts, we expect non-life penetration to remain constant at 5.12% of GDP from 2010 to 2015. We forecast an increase in life density from US$1,686 per capita in 2010 to US$1,900 in 2015. BMI's proprietary Insurance Business Environment Rating for South Korea is 71.3.

Although South Korea's insurance sector is open to foreign multinationals, the life and non-life segments continue to be dominated by the large domestic companies, which are typically associated with one of the massive South Korean corporate groups. In the non-life segment, for instance, Samsung Fire, Hyundai Fire & Marine, Dongbu Fire and LIG Non-Life account for about two-thirds of all premiums. In the life segment, Samsung Life, Korea Life, Kyobo Life and Shinhan Life have a combined market share that is only slightly smaller. However, ING (the fifth largest life insurer in the country) and Allianz (the seventh largest) are both writing about US$1bn in premiums annually.

We make two other observations here. The first is that the business of South Korea's non-life insurers is inflated by long-term insurance products that in other countries might be considered to be a part of the offerings of the life segment. In the quarter ending June 30 2010, for instance, long-term products accounted for over half of total non-life premiums, which amounted to KRW11,748,934mn. The second is that the data point to continuing strong growth in the non-life segment (which has consistently achieved double-digit growth since fiscal 2006) and a strong recovery in growth in the life segment, after two fairly dismal years in fiscal 2008 and 2009. In the non-life and life segments we expect growth to slow in the coming years. We anticipate growth in the life segment to decline as the non-life segment picks up market share for long-term insurance products.

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Report Table of Contents:

Executive Summary
- Table: Overview Of South Korea's Insurance Sector
- Key Insights On South Korea's Insurance Sector
SWOT Analysis
- South Korea Insurance Industry SWOT
- South Korea Political SWOT
- South Korea Economic SWOT
- South Korea Business Environment SWOT
What Might Have Been: Prudential's Acquisition Of AIA
- Tale: AIA - Key Facts
- Table: AIA's Market Positions
- Table: What The Combined Group Would Have Looked Like - Latest Rankings In Asia Pacific Life Insurance
- Table: Asia Highlights Of Prudential plc's 2009 Annual Report
- Table: Prudential plc's New Business In Annualised Premium Equivalent, 2009
- Table: Global Life Insurance Profitability - Selected Figures
- Table: Who's Who - Life Insurance Joint Ventures And Businesses In India And China
Asia Pacific Market Overview
- Table: Premium's In Asia Pacific's Non-Life Segment (US$mn)
- Table: Premiums In Asia Pacific's Life Segment (US$mn)
Projections And Forecasts
- Table: Insurance Premiums, 2008-2015
- Projections And Drivers Of Growth
- Table: Growth Drivers, 2008-2015
Country Update
- Macroeconomic Outlook
- Table: South Korea Economic Activity, 2008-2015
- Political Outlook
- Long-Term Political Outlook
- North-South Relations
Insurance Business Environment Ratings
- Table: South Korea's Insurance Business Environment Rating
- Table: Asia Pacific Insurance Business Environment Ratings
Regional Context
- Table: Non-Life Premiums In A Regional Context, 2009
- Table: Life Premiums In A Regional Context, 2009
Major Players In South Korea's Insurance Sector
- Table: Ranking Of Life Companies By Premiums, April-August 2010, (KRWmn)
- Table: Ranking Of Non-Life Companies By Premiums, January-June 2010, (KRWmn)
- Table: Breakdown Of Life Premiums, FY09, (KRWmn)
- Table: Breakdown Of Non-Life Premiums, April-June 2010 (KRWmn)
Analysis Of Regional Competitive Conditions
Regional Company Profiles
- AEGON
- Allianz
- Aviva
- AXA
- Cardif
- Fortis
- Generali
- Groupama
- HDI-Gerling
- HSBC Insurance
- ING Group
- Liberty Mutual
- Manulife
- MetLife
- Prudential Financial
- Prudential plc
- QBE
- RSA
- Sun Life Financial
- The Principal
- Zurich Financial Services
Country Snapshot: South Korea Demographic Data
- Section 1: Population
- Table: Demographic Indicators, 2005-2030
- Table: Rural/Urban Breakdown, 2005-2030
- Section 2: Education And Healthcare
- Table: Education, 2002-2005
- Table: Vital Statistics, 2005-2030
- Section 3: Labour Market And Spending Power
- Table: Employment Indicators, 2001-2006
- Table: Consumer Expenditure, 2000-2012 (US$)
- Table: Average Annual Wages, 2000-2012 (KRW)
BMI Methodology
- Insurance Business Environment Ratings
- Table: Insurance Business Environment Indicators And Rationale
- Table: Weighting Of Indicators

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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.