In 2024, the domestic life insurance market experienced a robust recovery, rebounding from the contraction of the previous year, with strong premium growth. This significant growth was attributed to strong sales performance in protection insurance, as life insurers have focused on protection insurance as an effective means to secure the Contractual Service Margin (CSM) under the IFRS 17 framework and improve their financial soundness. The total CSM for life insurance increased modestly year on year.
Demand for short-term payment whole life insurance expanded, while sales of non-refund and low-refund type health insurance increased, leading to strong year-on-year growth in protection insurance. In contrast, sales of savings insurance failed to gain growth momentum due to the impact of lower profitability under IFRS 17 and the continued higher interest rate environment.
Despite efforts to reduce low-margin portfolios and implement clean-cut strategies, Korean Re recorded KRW 886.5 billion in gross written premiums, a slight decrease of 0.1% from the previous year. This was driven by improved underwriting terms for in-force policies and a proactive strategy to acquire high-margin new contracts. Notably, in spite of an increase in IBNR reserves due to changes in reserve calculation methods, the continued enhancement of medical expense reinsurance treaty terms and a conservative underwriting strategy based on precise profit and loss analysis led to a KRW 2.9 billion increase in net led to a KRW 2.9 billion increase in net profit to KRW 34.5 billion, exceeding profitability targets. Exceeding profitability targets. We are also contributing to the advancement of the domestic life reinsurance market by introducing AIdriven underwriting techniques to primary insurers, hosting specialized medical seminars, and providing technical collaboration and support.
Looking ahead to 2025, the domestic life insurance market is expected to remain highly competitive in protection insurance sales, driven by efforts to secure new business CSM as well as by the growing market dominance of general agencies (GAs). Premium income from protection insurance is projected to reach KRW 55.3 trillion, reflecting a 3.3% year-on-year growth. Conversely, savings insurance is anticipated to decline by 7.3%, recording KRW 25.7 trillion in premium income, due to the expected fall in interest rates and concerns over an economic slowdown, despite growth drivers such as an aging population and the increasing need for retirement planning. Overall, the total premium income from protection and savings insurance is expected to decline by 0.2% to KRW 81 trillion, reflecting a shift in product portfolio dynamics within the life insurance industry.
In response to these external conditions, we will focus on securing profitability amid intensifying market competition in protection insurance through sophisticated pricing techniques based on data-driven conservative underwriting strategies. Additionally, we will continue to provide technical marketing support to primary insurers and facilitate joint product development efforts to counteract growth stagnation. By leveraging decades of accumulated experience in domestic reinsurance operations, we will also strengthen stable business relationships with primary insurers while implementing capital-efficient portfolio strategies in compliance with IFRS 17.
█ Gross Written Premiums: Domestic Life & Health
(Units: KRW billion, USD million)
| 2024 (KRW) | 2024 (USD) | 2023 (KRW) | 2023 (USD) | |
| Domestic Life & Health | 886.5 | 647.8 | 887.2 | 672.4 |
In 2024, the domestic life insurance market experienced a robust recovery, rebounding from the contraction of the previous year, with strong premium growth. This significant growth was attributed to strong sales performance in protection insurance, as life insurers have focused on protection insurance as an effective means to secure the Contractual Service Margin (CSM) under the IFRS 17 framework and improve their financial soundness. The total CSM for life insurance increased modestly year on year.
Demand for short-term payment whole life insurance expanded, while sales of non-refund and low-refund type health insurance increased, leading to strong year-on-year growth in protection insurance. In contrast, sales of savings insurance failed to gain growth momentum due to the impact of lower profitability under IFRS 17 and the continued higher interest rate environment.
Despite efforts to reduce low-margin portfolios and implement clean-cut strategies, Korean Re recorded KRW 886.5 billion in gross written premiums, a slight decrease of 0.1% from the previous year. This was driven by improved underwriting terms for in-force policies and a proactive strategy to acquire high-margin new contracts. Notably, in spite of an increase in IBNR reserves due to changes in reserve calculation methods, the continued enhancement of medical expense reinsurance treaty terms and a conservative underwriting strategy based on precise profit and loss analysis led to a KRW 2.9 billion increase in net led to a KRW 2.9 billion increase in net profit to KRW 34.5 billion, exceeding profitability targets. Exceeding profitability targets. We are also contributing to the advancement of the domestic life reinsurance market by introducing AIdriven underwriting techniques to primary insurers, hosting specialized medical seminars, and providing technical collaboration and support.
Looking ahead to 2025, the domestic life insurance market is expected to remain highly competitive in protection insurance sales, driven by efforts to secure new business CSM as well as by the growing market dominance of general agencies (GAs). Premium income from protection insurance is projected to reach KRW 55.3 trillion, reflecting a 3.3% year-on-year growth. Conversely, savings insurance is anticipated to decline by 7.3%, recording KRW 25.7 trillion in premium income, due to the expected fall in interest rates and concerns over an economic slowdown, despite growth drivers such as an aging population and the increasing need for retirement planning. Overall, the total premium income from protection and savings insurance is expected to decline by 0.2% to KRW 81 trillion, reflecting a shift in product portfolio dynamics within the life insurance industry.
In response to these external conditions, we will focus on securing profitability amid intensifying market competition in protection insurance through sophisticated pricing techniques based on data-driven conservative underwriting strategies. Additionally, we will continue to provide technical marketing support to primary insurers and facilitate joint product development efforts to counteract growth stagnation. By leveraging decades of accumulated experience in domestic reinsurance operations, we will also strengthen stable business relationships with primary insurers while implementing capital-efficient portfolio strategies in compliance with IFRS 17.
█ Gross Written Premiums: Domestic Life & Health
(Units: KRW billion, USD million)
2024 (KRW) |
2024 (USD) |
2023 (KRW) |
2023 (USD) |
|
Domestic Life & Health |
886.5 |
647.8 |
887.2 |
672.4 |