Seoul:South Korean insurance firms are projected to face slower growth in 2027 due to rising costs and an aging population, as indicated by a recent report.
According to Yonhap News Agency, the Korea Insurance Research Institute (KIRI) report suggests that the local insurance sector is expected to grow by 3.5 percent next year, a significant decline from this year's estimated growth of 8 percent. This marks the second consecutive year of slowing growth, following an 11 percent expansion in 2025.
The report forecasts a 2.3 percent growth for the life insurance sector and a 4.5 percent expansion for the non-life insurance segment next year. Combined premium income for the industry is anticipated to reach 299 trillion won (approximately US$225 billion), representing a 2.3 percent increase from the current year.
The South Korean insurance industry has been grappling with sluggish growth for several years, attributed to reduced demand for insurance policies amid low interest rates and a decelerating economy. Historical data from the report shows a decline in premium growth rates, with a 1 percent drop in 2017, a 0.2 percent decrease in 2018, and a projected 0.3 percent growth for this year.