South Korea Motor Insurance Market Size
| Study Period | 2019 - 2028 |
| Base Year For Estimation | 2021 |
| Forecast Data Period | 2024 - 2028 |
| Historical Data Period | 2019 - 2020 |
| CAGR | > 6.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
South Korea Motor Insurance Market Analysis
The auto industry has shown tremendous resilience due to the COVID-19 impact. From the economic depths experienced in spring 2020, it has rebounded to deliver year-on-year growth in new-vehicle sales over the last few months.
In 2020, the car insurance market value in South Korea amounted to nearly twenty trillion South Korean won, an increase of 11.6 percent from the previous year. The leading four car insurers in South Korea, Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, Dongbu Insurance, and KB Insurance accounted for nearly 85 percent of the South Korean car insurance market that year.
As per laws of South Korea auto insurance industry, it is necessary for every car, which has an engine displacement size of at least 50 ccs. Mopeds and vehicles, which are lesser than 50 ccs are not liable to be insured as per auto insurance laws of South Korea. Thus, compulsory motor insurance plays an important role in promoting the motor insurance market in South Korea.
South Korea Motor Insurance Market Trends
This section covers the major market trends shaping the South Korea Motor Insurance Market according to our research experts:
Increase in Insurance Penetration of Non-Life Segment
In 2020, non-life insurance penetration in South Korea reached about 5.2 percent, which was an increase compared to the previous year. The overall insurance penetration in South Korea stood at about 11.6 percent that year.
South Korea's non-life insurance sector has had its market segment outlook revised to negative from stable in 2019 due to the sector's deteriorated loss ratios in major business lines, escalated pressure on investment earnings amid a historic low-interest rate environment, and increased asset risk due to capital market volatility. However, in 2020 non-life insurance sector of South Korea has shown an increase in the penetration rate of the non-life segment of the motor insurance sector.
Online Insurance will Witness New Growth Avenue in Coming Future
The online insurance segment is witnessing the fastest growth in South Korea's motor insurance market during the forecast period. Owing to the ease of buying an online insurance policy, guidance is provided regarding discounts, offers, and plans by aggregators like Policybazaar boosting the confidence of consumers in buying online insurance. Also growing penetration of the internet is contributing to the growth of this segment. The initiative was taken by Insurance Regulatory and Development Authority for permitting insurers to conduct video-based KYC supporting the growth of online insurance.
South Korea Motor Insurance Industry Overview
The report covers the major players operating in the South Korea Motor insurance Market. The market is Consolidated due to the top 4 companies hold more than 50% market share. The market is expected to grow during the forecast period due to the increase in insurance penetration of the non-life segment and many other factors are driving the market.
South Korea Motor Insurance Market Leaders
Samsung Fire & Marine Insurance Co., Ltd.
Hyundai Marine & Fire Insurance Co., Ltd.
KB Insurance Co., Ltd.
Korean Reinsurance Company
Meritz Fire & Marine Insurance Co., Ltd.
*Disclaimer: Major Players sorted in no particular order
South Korea Motor Insurance Market News
- In May 2022: The South Korea based Carrot General Insurance Corp., which is the first licensed digital insurance carrier in the country announced the execution of a memorandum of understanding (MoU) with the Korea Transportation Safety Authority (TS). The MoU is one of the examples of public-private partnership campaigns that aim at validating Carrot's technology with the Korean Government. This is within the vision of the company to upgrade the road safety and traffic management systems and helps the TS in deployment of automobile-related government policies, procedures, technology, and resources.
- In August 2020: The leading reinsurer in South Korea, Korean Re, and Carlyle Group have partnered as co-reinsurance providers. While Carlyle oversees the premium income, Korean Re will assume the risk associated with the assets and liabilities held by insurers for reinsurance premiums.
South Korea Motor Insurance Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porters Five Force Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Key Market Insights
4.5.1 Impact of Government Regulations and Initiatives on the Insurance Industry
4.5.2 Merger and Acquisitions in insurance industry
4.6 Impact of COVID-19 on Market
5. MARKET SEGMENTATION
5.1 By Insurance Product
5.1.1 Private Automobile Insurance
5.1.2 Busines Automobile Insurance
5.1.3 Commercial Automobile insurance
5.1.4 Motorcycle Insurance
5.2 By Insurance Coverage
5.2.1 Compulsory
5.2.2 Voluntary
5.3 By Distribution Channel
5.3.1 Agents
5.3.2 Brokers
5.3.3 Banks
5.3.4 Others
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Samsung Fire & Marine Insurance Co., Ltd.
6.2.2 Hyundai Marine & Fire Insurance Co., Ltd.
6.2.3 KB Insurance Co., Ltd.
6.2.4 Korean Reinsurance Company
6.2.5 Meritz Fire & Marine Insurance Co., Ltd.
6.2.6 Lotte Non Life Insurance Co., Ltd.
6.2.7 DB Insurance Co., Ltd.
6.2.8 Hanwha General Insurance Co., Ltd
6.2.9 AXA General Insurance Co., Ltd.
6.2.10 Heungkuk Fire & Marine Insurance Co Ltd*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
South Korea Motor Insurance Industry Segmentation
South Korea Motor Insurance Market is segmented by Insurance Product (Private Automobile Insurance, Business Automobile Insurance, Commercial Automobile Insurance, and Motorcycle Insurance), by Insurance Coverage (Compulsory Insurance, and Voluntary Insurance), and by Distribution Channel (Agents, Banks, Brokers, and Others). This report aims to provide a detailed analysis of the South Korea motor insurance market. It focuses on the market dynamics, emerging trends in the segments and regional markets, and insights on various product and application types. Also, it analyses the key players and the competitive landscape in the South Korea motor insurance market.
| By Insurance Product | |
| Private Automobile Insurance | |
| Busines Automobile Insurance | |
| Commercial Automobile insurance | |
| Motorcycle Insurance |
| By Insurance Coverage | |
| Compulsory | |
| Voluntary |
| By Distribution Channel | |
| Agents | |
| Brokers | |
| Banks | |
| Others |
South Korea Motor Insurance Market Research FAQs
What is the current South Korea Motor Insurance Market size?
The South Korea Motor Insurance Market is projected to register a CAGR of greater than 6% during the forecast period (2023-2028).
Who are the key players in South Korea Motor Insurance Market?
Samsung Fire & Marine Insurance Co., Ltd., Hyundai Marine & Fire Insurance Co., Ltd., KB Insurance Co., Ltd., Korean Reinsurance Company and Meritz Fire & Marine Insurance Co., Ltd. are the major companies operating in the South Korea Motor Insurance Market.
South Korea Motor Insurance Industry Report
Statistics for the 2023 South Korea Motor Insurance market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South Korea Motor Insurance analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
