Expanded Focus on South Korean Life Sector: Anticipated Growth on the Horizon
The insurance industry in South Korea is set to experience growth across various sectors over the next few years, according to a market report released by GlobalData.
The life insurance industry is forecast to grow at a compound annual growth rate (CAGR) of 3.1% from KRW182.7 trillion ($139.8 billion) in 2025 to KRW206.2 trillion ($157.9 billion) by 2029, in terms of direct written premium (DWP). This growth is supported by demographic changes, with the population aged 65 years and older in South Korea estimated to reach 20.8% in 2025.
Meanwhile, the life insurance industry growth is forecasted to be higher than the general insurance industry's growth rate. The general insurance industry is projected to grow at a CAGR of 3.8% from KRW33.7 trillion ($25.1 billion) in 2025 to KRW39.1 trillion ($29.1 billion) by 2029, in terms of DWP. Motor insurance remains the largest line of business and is expected to account for 58.7% of the general insurance DWP in 2025.
Other general insurance lines, such as financial lines, property, and marine, aviation, and transit, are estimated to account for the remaining 20% share of the general insurance DWP in 2025. Liability insurance is the second-largest line of business, with an estimated 13.5% share of the general insurance DWP in 2025.
The outlook for South Korea's general insurance industry remains positive, with a projected acceleration in premium growth over the next five years. This growth is expected to be driven by factors such as the increasing demand for customizable health products, rising costs of healthcare, and an aging population.
Notably, the sale of electric vehicles (EVs) reached 52% of total vehicle sales in May 2025, which could have an impact on the motor insurance sector. According to the Korea Automobile and Mobility Association (KAMA), automobile sales grew for the fifth consecutive month in June 2025, increasing by 5.8%.
The growth of the South Korean life sector is also being driven by demographic changes. The South Korean life insurance industry is forecast to grow at a CAGR of 5.6% over 2023-27, and the personal accident and health insurance line is forecast to expand at a CAGR of 9.3% during 2025-29.
GlobalData has provided statistics on the growth of the South Korean life sector and the general insurance industry. The Senior Insurance Analyst at GlobalData who spoke about the development of the insurance sector in South Korea was not named in the search results.
In conclusion, the insurance industry in South Korea is projected for growth across multiple sectors over the next few years, with the life insurance industry forecasted to grow at a higher rate than the general insurance industry. The outlook for the general insurance industry remains positive, with a projected acceleration in premium growth over the next five years, driven by factors such as the increasing demand for customizable health products, rising costs of healthcare, and an aging population.
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