South Korea Motor insurance Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Key Highlights

• The South Korea Motor insurance Market is estimated to grow at a CAGR of approximately 2.5% during the forecast period.
• Direct Premium income of the non-life insurance sector for the Q2 of 2019 rose to 23.0 trillion KRW, up by 5.8% compared to the Q2 of 2018. In Q2 2019, the Direct premium written of the automobile was 4,384 billion KRW. In Q2 2019, Auto insurance premium jumped by 4.0% due to the increase in insurance premium rate caused by increased maintenance fees, higher loss ratios, and revision of the standard terms and conditions. For the Q2 of 2019, the division of and automobile insurance decreased to 19.1% from 19.4% for the Q2 of 2018.
• In 2018, Automobile insurance was second highest in terms of written premium with 15.8 trillion KRW, 17.6% share of overall non-life written premium. Automobile insurance recorded a high loss ratio of 85.9%, expenses incurred by automobile insurance have decreased by 2.7 % compared to the previous year. Among non-life insurances, automobile insurances have constantly been in deficit for a long time and the underwriting result of the automobile insurance has deteriorated to the previous year, Underwriting results of automobile insurance turned to a deficit by 739 billion KRW in 2018.

Key Market Trends

Increase in Insurance penetration of Non-Life Segment:

Korea’s insurance penetration ratio, premiums as a percentage of GDP, reached 11.2% in 2018. The life insurance penetration ratio decreased to 6.1% in 2018 from 6.6% in 2017. Therefore, the non-life insurance penetration ratio increased to 5.1% in 2018 from 5.0% in 2017. Insurance density, which is defined to be premiums per capita, reached 3,465 USD in 2018. Life insurance density in Korea decreased to 1,898 USD, and non-life insurance density increased to 1,567 USD.

Demand for passenger cars have potential:

South Korea plans to commercialize fully automated vehicles by 2027 and become the first country in the world to have entirely self-driving cars on its roads. To achieve this goal, the government and vehicle manufacturers will invest around KRW 60 trillion (USD 50.7 billion) in the industry by 2025. Hyundai Motor Group, the country’s largest automaker, will contribute more than two-thirds of that amount.

Competitive Landscape

The report covers the major players operating in the South Korea Motor insurance Market. The market is Consolidated due to the top 4 companies hold more than 50% market share. The market is expected to grow during the forecast period due to the increase in insurance penetration of the non-life segment and many other factors are driving the market.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support