The latest market data snapshot from GlobalData;
The general insurance industry in South Korea is projected to grow at a compound annual growth rate (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 direct written premium (DWP), according to GlobalData, a leading data and analytics company.
According to GlobalData’s Global Insurance Database, the South Korean general insurance market is estimated to register an annual growth of 2.8% in 2025, supported by a surge in liability premiums that reflects a stricter compliance frameworks, as well as a steady rise in health and personal accident lines. Strong regulatory oversight by the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS), along with demographic trends such as an aging population, are expected to remain pivotal in sustaining long-term growth momentum.
Swarup Kumar Sahoo, Senior Insurance Analyst at GlobalData, comments: “Motor, liability, and personal accident and health insurance remain key growth engines in Korea’s general insurance landscape. 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.”
Motor insurance is the largest line of business and is expected to account for 58.7% of the general insurance DWP in 2025. The segment is forecasted to grow at a CAGR of 1.9% during 2015-29, supported by rising vehicle sales, increasing traffic accidents, increased premium rates in response to higher loss ratios (averaged 82.3% during 2020-24), and regulatory protections.
According to the Korea Automobile and Mobility Association (KAMA), automobile sales grew for the fifth consecutive month in June 2025, increasing by 5.8%. Notably, the sale of electric vehicles (EVs) reached 52% of total vehicle sales in May 2025, indicating a shift in risk underwriting with increased frequency and number of related fire incidents. Insurers have launched tailored products such as insurance covering the risk of battery damage and incidents related to roadside charging.
Sahoo adds: “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.”
Liability insurance is the second-largest line of business, with an estimated 13.5% share of the general insurance DWP in 2025. The liability insurance growth will be supported by regulatory mandates such as the Act on the Protection of Virtual Asset Users, introduced in July 2024. This act requires virtual asset service providers to hold liability insurance, driving up coverage volumes. Furthermore, revisions to the Personal Information Protection Act have made insurance for data breach risks obligatory for a wider range of organizations, including hospitals and corporations, thus broadening market reach. GlobalData expects the liability insurance direct written premiums to grow at a CAGR of 6.0% during 2025-29.
Personal accident and health insurance is the third-largest line of business, estimated to account for 7.8% of the general insurance DWP in 2025. The growth of this line will be supported by an aging population, rising costs of healthcare, and the appeal of customizable health products.
According to GlobalData, the population aged 65 years and older in South Korea is estimated to reach 20.8% in 2025. The introduction of sliding-scale premiums for medical expense insurance, starting July 2024, will support the growth. Under this system, rider premiums will be applicable for non-benefit items based on the past record of medical service usage,. The personal accident and health insurance line is forecast to expand at a CAGR of 9.3% during 2025-29.
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.
Sahoo concludes: “The outlook for South Korea’s general insurance industry remains positive, with a projected acceleration in premium growth over the next five years. Continued focus on healthcare resilience, liability protection, and technology-driven motor coverage will define the sector’s trajectory. While competition will intensify, insurers with strong underwriting discipline and digital capabilities are likely to secure long-term growth and profitability.”
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