The primary long-term insurance market in Korea grew by 2.8 percent in 2017. Personal accident and driver’s insurance policies led the growth of the market in spite of a slowdown in sales growth of disease insurance and savings products.
In 2017, Korean Re reported a solid year-on-year growth of 12.6 percent to KRW 1,861 billion in premium income from long-term business. The combined ratio for long-term business improved slightly to 98.9 percent in 2017 as we strived to build a profitable long-term business portfolio by supporting the development of new products and actively underwriting long-term property business.
In 2018, we expect the market to see a modest but stable growth in terms of premium income. The growth of the personal accident and disease insurance sectors is forecast to weaken as a premium rate increase for medical expense insurance is slowing down. Marketing drives for driver’s insurance and long-term property insurance will likely lead the overall growth of the market.
Korean Re will remain dedicated to providing stable reinsurance capacity in order to support the development of the long-term insurance market in line with customer demand. We will seek to explore ideas for new insurance products by analyzing domestic and global product development trends. 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. With these efforts, we will endeavor to achieve a stable premium income growth and ultimately contribute to improving our business portfolio.