Independent Forecasts and Competitive Intelligence on South Korea's Insurance Industry for Q2 08
DUBLIN, Ireland--(Business Wire)--
Research and Markets
(http://www.researchandmarkets.com/research/fc8510/south_korea_insura)
has announced the addition of the "South Korea Insurance Report Q2
2008" report to their offering.
As was the case in Q1 08, the main focus of this report is BMI's
proprietary Insurance Business Environment Rating (IBER). The rating
brings together a number of pieces of relevant quantitative data,
together with BMI's Country Risk Rating (CRR). The IBER makes it
easier for the insurance sector business environment in a particular
country to be compared with the business environment for any other
BMI-monitored industry in that country. The IBER also allows an
objective and meaningful comparison of the insurance sector business
environment between countries. Over the coming months, we will
substantially change the format of the BMI insurance reports. In
essence, we will focus to a much greater extent on the companies that
are active in the non-life and life segments.
South Korea's IBER is 71.3. Relative to other countries in Asia
Pacific, it is only a moderately attractive insurance market for
foreign insurers. The landslide victory of Lee Myung-bak in the
December 2007 presidential elections heralds tax cuts, labour market
reform and the dismantlement of regulations within the financial
sector over the next five years. Internal opposition and adverse
conditions should, however, serve to dilute the more ambitious points
in his election platform. The IBER for South Korea has been held back
by the weakness of its regulatory framework and lack of openness to
new entrants. It will remain lower than it otherwise ought to be -
unless the promised reforms do materialize.
Where South Korea stands out is in terms of the absolute size of
both its life and non-life segments and the probable growth in both of
these over the forecast period.
Even after allowing for some troubling economic signs and a likely
slowing of the economy, we anticipate that non-life premiums will grow
by 4% annually in local currency terms and by 6% in US dollar terms.
Life premiums are expected to increase by 5% annually in local
currency terms and by 6% in US dollar terms. The key drivers of growth
in the non-life segment in 2007-2012 are the anticipated rise in
nominal GDP from around US$963.98bn to US$1,203.35bn and an expected
increase in non-life penetration from 3.77% of GDP to 4.00%. The key
driver of growth in the life segment is the envisaged rise in life
density from a miniscule US$1,181.51 per capita in 2007 to US$1,500
per capita in 2012.
South Korea's total population will also grow from 48.14mn to
51.02mn during the forecast period. The market, in both the life and
non-life segments, is quite fragmented but dominated by local players.
New foreign entrants face considerable challenges but a large market
beckons to those able to overcome the obstacles.
Key Topics Covered:
- The Sector at a Glance
- Table: Overview of South Korea's Insurance Sector
- Key Insights on the South Korean Insurance Sector
- SWOT Analysis
- South Korea Industry SWOT
- Future Development of BMI's Insurance Reports
- Latest News
- Projections and Forecasts
- Table: Premium Growth, 2005-2012 0
- Projections and Drivers of Growth
- Table: Growth Drivers, 2005-2012
- Country Update
- Macroeconomic Outlook
- Table: South Korea - Economic Activity
- Political Outlook
- Insurance Business Environment Rating
- Table: South Korea - Insurance Business Environment Indicators
- Table: Asia Pacific Insurance Business Environment Rankings
- Regional Context
- Table: Non-Life Premiums in a Regional Context, 2007
- Table: Life Premiums in a Regional Context, 2007
- Table: Comparison of Major Lines As % Non-Life Premiums, 2006
- Analysis of Competitive Conditions
- South Korea - Non-Life Segment
- Table: Presence of Cross-Border Insurers, Non-Life
- South Korea - Life Segment
- Table: Presence of Cross-Border Insurers, Life
- Methodology
- Basis of Projections
- Insurance Business Environment Rating
- Table: Insurance Business Environment Indicators and Rationale
- Table: Weighting Of Indicators
For more information visit
http://www.researchandmarkets.com/research/fc8510/south_korea_insura
Research and Markets
Laura Wood, Senior Manager
press@researchandmarkets.com
Fax from USA: 646-607-1907
Fax from rest of the world: +353-1-481-1716
Copyright Business Wire 2008
