GlobalData forecasts that South Korea’s normal insurance coverage market will expertise wholesome progress, recording a compound annual progress price (CAGR) of 6.8% over 2020–25f, making it a lovely marketplace for overseas funding. Given such robust prospects, Lloyd’s of London normal insurance coverage dealer Ramon Worldwide expanded to open an workplace in South Korea by its latest acquisition as a part of plans to cement the agency within the Asian market. Nevertheless, long-term success might show difficult because of a declining inhabitants.
In accordance with GlobalData’s International Insurance coverage Database, by way of gross written premiums (GWP), South Korea’s normal insurance coverage market is ready to develop from KRW112.3trn ($98.1bn) in 2021 to KRW143.9trn ($127.9bn) in 2025f, representing a CAGR of 6.8%. Moreover, normal insurance coverage will account for 52.2% of GWP in 2025f, in comparison with 48.6% in 2021e. Motor insurance coverage leads the best way with a 17.5% share of normal insurance coverage GWP.
This chance has prompted Ramon Worldwide to enter the market by buying a majority stake in CKI Korea by its mother or father firm, Kastor Holdings. Ramon Worldwide has now been rebranded as Ramon Korea Restricted because it goals to develop its credibility within the Asian market.
Supply: GlobalData’s International Insurance coverage Database
South Korea is among the strongest economies in Asia, with GDP of over $1.8trn as per the IMF. That equates to roughly a 5% share of your complete Asian market. South Korea’s robust and rising financial system is clearly promising to insurers and brokers, corresponding to Ramon, in or coming into into the market.
Nevertheless, one of many greatest challenges they may face is the nation’s declining inhabitants, which is ready to fall by 13.7% by 2060 based on Statistics Korea. A declining inhabitants would naturally imply a smaller buyer base. Nonetheless, the market offers insurers with the chance of a rising financial system and a gateway into the broader area.