South Korea’s general insurance sector is on track to exceed KRW39.1 trillion (US$29.1 billion) in direct written premiums (DWP) by 2029, according to new projections from GlobalData.
This anticipated growth, which translates to a compound annual growth rate (CAGR) of 3.8% from KRW33.7 trillion (US$25.1 billion) in 2025, is expected to be driven by regulatory developments, demographic shifts, and evolving consumer needs.
GlobalData’s analysis indicates that the market will expand by 2.8% in 2025, with liability insurance premiums rising in response to stricter compliance requirements.
Health and personal accident insurance are also forecast to see steady gains, underpinned by regulatory oversight from the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS).
The country’s aging population is expected to further support long-term industry expansion.
Swarup Kumar Sahoo, senior insurance analyst at GlobalData, noted that motor, liability, and health-related insurance products are expected to remain central to the industry’s growth.
“The revival in vehicle sales and tightening regulations, including data protection regulations, have collectively triggered demand in these lines. Heightened health following the COVID-19 pandemic continues to drive private health insurance growth, with longer waiting times in the public healthcare system and rising medical costs pushing consumers further toward health products,” he said.
Motor insurance is projected to remain the dominant segment, accounting for nearly 59% of South Korea’s general insurance DWP in 2025.
This line is expected to grow at a CAGR of 1.9% from 2015 to 2029, supported by a combination of rising vehicle sales, more frequent traffic incidents, and premium adjustments to address higher loss ratios.
Recent data from the Korea Automobile and Mobility Association (KAMA) shows that automobile sales have increased for five consecutive months as of June 2025, with a 5.8% uptick.
Electric vehicles (EVs) have become a significant portion of the market, comprising 52% of new vehicle sales in May 2025.
This shift has prompted insurers to introduce new products that address risks unique to EVs, such as battery damage and roadside charging incidents.
Sahoo added that partnerships between automakers and insurers are expanding, particularly in the area of embedded insurance for EVs.
“Collaboration between automakers and insurers on embedded insurance products for EVs will also expand coverage uptake, supporting steady growth. Additionally, digital distribution channels and the popularity of usage-based insurance models are expected to increase market penetration,” he said.
Liability insurance is expected to represent 13.5% of the general insurance market by 2025.
Regulatory initiatives, including the Act on the Protection of Virtual Asset Users, are requiring virtual asset service providers to maintain liability coverage, which is expected to increase demand.
Amendments to the Personal Information Protection Act have also expanded the range of organisations required to carry data breach insurance.
GlobalData projects a 6.0% CAGR for liability insurance premiums between 2025 and 2029.
Personal accident and health insurance is forecast to make up 7.8% of the market in 2025.
The sector’s growth is attributed to the rising proportion of older adults – expected to reach 20.8% of the population in 2025 – and the introduction of sliding-scale premiums for medical expense insurance. These changes, effective from July 2024, will allow premiums to be adjusted based on prior medical service usage. This segment is anticipated to grow at a CAGR of 9.3% through 2029.
Other general insurance categories, such as financial lines, property, and marine, aviation, and transit insurance, are projected to account for the remaining 20% of the market in 2025.
Looking ahead, Sahoo commented that the industry’s prospects are shaped by ongoing developments in healthcare, liability protection, and technology-driven motor insurance.
“While competition will intensify, insurers with strong underwriting discipline and digital capabilities are likely to secure long-term growth and profitability,” he said.
The motor insurance market is forecast to reach KRW25 trillion (US$18.6 billion) in gross written premiums by 2029, reflecting a CAGR of 4.5% from KRW20.9 trillion (US$15.6 billion) in 2025.
This expansion is expected to be underpinned by increased new vehicle sales, a rebound in third-party liability coverage, and premium adjustments.
Separately, South Korea’s life insurance sector is projected to reach KRW206.2 trillion (US$157.9 billion) in DWP by 2029, growing at a CAGR of 3.1% from KRW182.7 trillion (US$139.8 billion) in 2025.
