Long-term

The long-term insurance market in Korea maintained growth momentum throughout 2018 in the face of declining savings insurance sales due to reduced tax benefits. The main drivers of growth were long-term personal accident (PA) and disease insurance products, leading the market to grow by 3 percent in terms of direct premiums in 2018. 

Long-term insurance was an engine of premium growth for Korean Re in 2018, with gross written premiums rising by 9.1 percent to KRW 2,031 billion for the year. The combined ratio increased by 0.6 percentage point to 99.4 percent amid deteriorating loss ratios of medical expense insurance products, but we continued to expand the portion of profitable business in our long-term business portfolio. This effort to build a more profitable book of business focused on the co-development of new products with direct insurers.        

In 2019, the overall growth rate of the market is expected to be comparable with what was recorded in 2018, as insurers’ sales strategy will remain geared toward boosting new business, with a particular focus on PA and disease policies. There will likely be growing competition among direct insurers to develop new products targeting people with chronic or pre-existing conditions and increase new business in this product segment. 

In response, we will continue to work closely with our clients so that we can support market growth in a way that meets their needs effectively. Analyzing the trend of product development within and outside the country is a critical aspect of our work to explore ideas for new products. 

Another focus will be placed on providing our clients with medical underwriting services and supporting the expansion of the long-term property insurance market based on our technical assistance and reinsurance programs. Through these efforts, we will endeavor to achieve stable premium income growth and ultimately contribute to improving our business portfolio.

Gross Written Premiums: Long-term

(Units: KRW billion, USD million)