Page 16 - Insurance Times February 2022

International

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Insurance industry in under the upcoming IFRS-17 and K-ICS ers in digital transformation, ESG re-
regulations will prompt insurers to lated initiatives, and positive regula-
South Korea to reach shift their focus towards protection- tory environment.”
$229.5bn in 2025 type products over the next few years.
As a result, life insurance is expected 52% of UK consumers who
South Korean insurance industry is pro-
to grow at a CAGR of 1.6% during
jected to grow at a compound annual 2020-2025.” buy income protection in-
growth rate (CAGR) of 3.5% from surance do so because of
KRW220.5 trillion ($186.8bn) in 2020 General insurance segment accounted
to KRW262.5 trillion ($229.5bn) in for the remaining 46.0% of the DWP COVID-19
2025, in terms of direct written premi- in 2020. The segment grew by 7.0% in According to findings from
ums, forecasts GlobalData, a leading 2020, driven by an increase in motor GlobalData’s 2020–21 UK Insurance
data, and analytics company. premiums and improved underwriting Consumer Surveys, 52% of UK consum-
performance of general insurers. How-
Anjuli Srivastav, Insurance Analyst at ers in 2021, compared to 37.4% in
ever, it is expected to witness a slower
GlobalData, comments: “After grow- growth of 3.8% in 2021 due to the 2020, stated that their decision to buy
ing by 4.2% in 2020, the industry is income protection insurance was influ-
economic impact of the pandemic.
expected to contract by 0.4% in 2021. enced by the COVID-19 pandemic.
The decline is mainly driven by life in- South Korean insurers’ have also taken Beatriz Benito, Senior Insurance Ana-
surance segment, which is expected to initiatives to divest from high-risk non- lyst at GlobalData, says: “Individuals
contract by 2.5% due to the persistent renewable energy projects and invest have become increasingly wary about
low-interest-rate environment, re- only in renewable energy projects, the unprecedented events of the last
duced disposable income due to the which is expected to support their un- two years, rethinking how best to pro-
derwriting performance in the coming
COVID-19 pandemic, and an aging tect themselves now and in the future.
population.’’ years. The UK’s furlough scheme prevented
Life insurance accounted for 54.0% of In June 2021, insurers like Hyundai mass redundancies, yet many individu-
the industry’s direct written premiums Marine & Fire Insurance, Hana Insur- als still felt the financial squeeze. Some
(DWP) in 2020. The segment is ex- ance, DB Insurance, and Hanwha Gen- consumers may feel more vulnerable
pected to revive in 2022 and grow by eral Insurance pledged to stop provid- to job losses and health concerns than
1.9%, driven by post-pandemic eco- ing construction and operational insur- in the past and are therefore examin-
nomic recovery and increased aware- ance coverage to any new coal ing ways of protecting themselves in
ness, which will boost the demand for projects. an uncertain economy.
health insurance products. Srivastav concludes: “The outlook for “Equally, the pandemic has increased
Srivastav continues: “Maintaining the South Korean insurance industry awareness about the importance of
strict solvency and capital require- looks positive driven by economic re- health and wellbeing. Many individuals
ments for annuity insurance products covery, increased investments by insur- may not have the funds to support

16 The Insurance Times, February 2022