|
|
 |
|
Viewing report
|
|
|
|
South Korea Insurance Report Q2 2010
Business Monitor International, March 2010, Pages: 108
Business Monitor International's South Korea Insurance Report provides industry professionals and strategists, corporate analysts, insurance associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on South Korea's insurance industry.
A major change in relation to BMI's last quarterly report is that they have reviewed all data that is publicly available at the beginning of 2010 in order to ensure that their estimate for 2009 and forecast for 2010 are reasonable. BMI have been able to include actual data for 2008 across all countries that they survey in the Asia-Pacific region.
This quarter, BMI include a regional review that looks at the actual and forecast growth rates for premiums – across both major segments. A key insight is that growth in China’s life segment has slowed markedly over the last year or so. Nevertheless, the impact of the global financial crisis was much greater in South Korea, Australia, Singapore and Hong Kong. For the time being, BMI continue to expect that the most rapid growth will take place in countries such as Vietnam and the Philippines – where organised savings are at an embryonic state of development. For non-life insurers, the key insight is that price competition has caused penetration (ie: premiums as a percentage of GDP) to fall in many countries: indeed, there has been a fall in absolute premiums in some instances.
As was the case in Q1, BMI provide a ranking of the major players in each of the two main segments, as they are seen by the organisation providing the data (which is usually the regulator or the trade association). In South Korea, for instance, the three largest non-life companies in H109, in terms of gross written premiums, were Samsung F&M, Hyundae and Dongbu F&M, whose market shares were 27.0%, 15.3% and 14.2% respectively. In the life segment, the leaders in H109 were Samsung, Kyobo and Korea, whose market shares were 28.6%, 13.4% and 13.1% respectively. Over time, BMI hope to derive insights from observing how market shares change. BMI emphasise though that a decline in share of gross written premiums is not automatically a bad thing and is often the result of a deliberate corporate decision to focus on more profitable business lines.
In this report, BMI also provide a breakdown of the insurance sector by line, from the point of view of the regulator or the trade association. In South Korea, for instance, the largest non-life lines in 2008 were land vehicles voluntary insurance (CASCO), accident and compulsory motor third party liability (CMTPL). These accounted for 21.9%, 12.5% and 11.4% respectively of total non-life premiums. Over time, BMI should be able to use this information to bring greater sophistication to their forecasting process. BMI estimate total premiums in 2009 of KRW102,146,809mn. This includes non-life premiums of KRW40,134,661mn and life premiums of KRW62,012,147mn. In 2014, the corresponding figures should be KRW135,637,800mn, KRW61,987,800mn and KRW73,650,000mn. In terms of the key drivers that underpin their forecasts, BMI expect non-life penetration to increase from 3.37% in 2009 to 4.20% in 2014, and for life density to rise from US$1,001 per capita to US$1,500. BMI’s proprietary Insurance Business Environment Rating for South Korea is 72.8
Product samples
A sample for this product is available. Please Login/Register to download this sample.
Customers who bought this item also bought
South Korea Insurance Report Q4 2010
South Korea Insurance Report Q1 2011
South Korea Insurance Report Q1 2010
South Korea Insurance Report Q1 2012
South Korea Insurance Report Q2 2012
Emerging Insurance Markets of Asia-Pacific - Global Strategic Business Report
Thailand Insurance Report Q2 2010
Malaysia Insurance Report Q2 2010
Vietnam Insurance Report Q2 2010
China Insurance Report Q2 2010
|
|
|
|
