home
Chairman & CEO
Chairman & CEO
Korean Insurance Industry Update
Premium Volume in 2016
The total premium of the Korean insurance market slightly increased by 3.6% in 2016. Subsequently, Korea kept its 3.61% share,
and placed 7th globally and 3rd in Asia.
[Unit : USD million, %]
| Rank | Country | Premium Voulme in 2016 | Premium Volume in 2015 |
|||
|---|---|---|---|---|---|---|
| Total | M/S | Life | Non-Life | |||
| 1 | United States | 1,352,385 | 28.6 | 558,847 | 793,538 | 1,318,485 (2.6%) |
| 2 | Japan | 471,295 | 10.0 | 354,053 | 117,243 | 448,611 (5.1%) |
| 3 | PR China | 466,131 | 9.9 | 262,616 | 203,515 | 386,500 (20.6%) |
| 4 | United Kingdom | 304,208 | 6.4 | 199,369 | 104,839 | 328,883 (-7.5%) |
| 5 | France | 152,817 | 5.0 | 558,847 | 84,826 | 238,011 (-0.2%) |
| 6 | Germany | 215,021 | 4.5 | 94,661 | 120,360 | 214,494 (0.2%) |
| 7 | South Korea | 170,862 | 3.6 | 104,169 | 66,694 | 164,997 (3.6%) |
| 8 | Italy | 162,383 | 3.4 | 122,438 | 39,945 | 167,736 (-3.2%) |
| 9 | Canada | 114,523 | 2.4 | 49,976 | 64,547 | 114,420 (0.1%) |
| 10 | Taiwan | 101,445 | 2.1 | 84,493 | 16,952 | 95,979 (5.7%) |
| World | 4,732,188 | 100 | 2,617,016 | 2,115,172 | 4,597,680 (2.9%) | |
Source : Sigma, No.3/2017, Swiss Re
Insurance Density : Premium Per Capita in 2016
Insurance density reached US $3,362 in 2016 which placed Korea into 18th place overall in the world.
Life and non-life insurance density totaled US $2,050 and US $1,312 respectively.
[Unit : USD]
| Rank | Country | Population (millions) |
Premiums per Capita in 2016 | ||
|---|---|---|---|---|---|
| Total | Life | Non-Life | |||
| 1 | Cayman Islands | 0.1 | 12,160 | 596 | 11,565 |
| 2 | Hong Kong | 7.4 | 7,679 | 7,066 | 613 |
| 3 | Switzerland | 8.4 | 6,934 | 3,700 | 3,233 |
| 4 | Denmark | 5.7 | 5,159 | 3,742 | 1,416 |
| 5 | Finland | 5.5 | 5,061 | 4,106 | 955 |
| 6 | Netherlands | 17.0 | 4,717 | 965 | 3,752 |
| 7 | Luxembourg | 0.6 | 4,589 | 2,631 | 1,958 |
| 8 | Ireland | 4.7 | 4,408 | 3,640 | 769 |
| 9 | Taiwan | 23.5 | 4,321 | 3,599 | 722 |
| 10 | United States | 324.0 | 4,174 | 1,725 | 2,449 |
| - | |||||
| World | 4,732,188 | 638 | 353 | 285 | |
Source : Sigma, No.3/2017, Swiss Re
Insurance Penetration : Premium as a % of GDP in 2016
Insurance penetration in the Korean insurance market was a remarkable 12.1% on 2016 which placed it 5th in the world and 3rd in Asia.
Much like insurance density, life insurance had a higher penetration rate at 7.4% compared to non-life insurance at 4.7%
[Unit : %]
| Rank | Country | GDP (USD billion) | Premiums as % of GDP in 2016 | ||
|---|---|---|---|---|---|
| Total | Life | Non-Life | |||
| 1 | Cayman Islands | 3 | 22.6 | 1.1 | 21.5 |
| 2 | Taiwan | 508 | 20.0 | 16.7 | 3.3 |
| 3 | Hong Kong | 321 | 17.6 | 16.2 | 1.4 |
| 4 | South Africa | 294 | 14.3 | 11.5 | 2.7 |
| 5 | South Korea | 1,414 | 12.1 | 7.4 | 4.7 |
| 6 | Finland | 237 | 11.8 | 9.5 | 2.2 |
| 7 | Netherlands | 771 | 10.4 | 2.1 | 8.3 |
| 8 | United Kingdom | 2,629 | 10.2 | 7.6 | 2.6 |
| 9 | Denmark | 307 | 9.6 | 7.0 | 2.6 |
| 10 | Japan | 4,954 | 9.5 | 7.2 | 2.4 |
| World | 75,335 | 6.3 | 3.5 | 2.8 | |
Source : Sigma, No.3/2017, Swiss Re
Premium Income
In terms of total assets, the Korean insurance industry grew by 8.7%, reaching KRW 1034.1 trillion in 2016.
Despite faster growth in the non-life insurance industry, life insurance accounted for the bulk of assets at KRW 782.1
trillion while non-life accounted for KRW 252 trillion.
[Unit : KRW trillion, %]
| Classification | FY'12 | FY'13 | FY'14 | FY'15 | FY'16 |
|---|---|---|---|---|---|
| Life | 115.3 [30.1] | 108.6 [-5.8] | 110.6 [1.8] | 117.9 [6.0] | 119.8[2.2] |
| None-Life | 68.6 [11.7] | 70.7 [3.2] | 76.6 [17.4] | 80 [4.4] | 84.5 [5.6] |
| Total | 183.9 [22.8] | 179.3 [-2.5] | 187.2 [4.4] | 197.2 [5.3] | 204.3 [3.6] |
Source: Insurance Statistics Yearbook, KIDI
Note : Parenthesis indicates the growth rate
Total asset
In terms of total assets, the Korean insurance industry grew by 8.7%, reaching KRW 1034.1 trillion in 2016.
Despite faster growth in the non-life insurance industry, life insurance accounted for the bulk of assets at KRW 782.1 trillion
while non-life accounted for KRW 252 trillion.
[Unit : KRW trillion, %]
| Classification | FY'12 | FY'13 | FY'14 | FY'15 | FY'16 |
|---|---|---|---|---|---|
| Life | 569.8[24.4] | 597.5 [4.9] | 662.1 [10.8] | 724.9[9.5] | 782.1[7.9] |
| None-Life | 156.5 [20.5] | 170.6 [9.0] | 200.3 [17.4] | 226.1 [12.9] | 252 [11.5] |
| Total | 726.3 [23.5] | 768.1 [5.8] | 862.4 [12.3] | 951 [10.3] | 1034.1 [8.7] |
Source: Insurance Statistics Yearbook, KIDI
Note : Parenthesis indicates the growth rate
Note : The designated time frame for one financial year (FY) changed in FY’13. As one FY changed to January 1st ~ December
31st from April 1st ~ March 31st, FY’13 became only nine months (April 1st ~ December 31st).
TNumber of Insurance Companies in Korea
As of 2016, fifty-seven insurance companies are conducting business operations in Korea,
of which twenty-five are in the life insurance business while thirty-two are in non-life insurance.
[Unit : KRW trillion, %]
| Category | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|
| Life | 22 | 22 | 22 | 23 | 23 | 24 | 25 | 25 | 25 | 25 |
| None-Life | 28 | 30 | 30 | 30 | 30 | 31 | 31 | 31 | 31 | 32 |
| Total | 50 | 52 | 52 | 53 | 53 | 55 | 56 | 56 | 56 | 57 |
Source : Monthly Financial Statstic Bulletin, FSS
Note : The number of non-life insurance companies includes reinsurance companies and foreign insurance company branches in Korea.
Note : All figures are on a year-end basis