The growth rate of the insurance industry next year is projected to stall at 3.5%, falling short of even half of this year's expected growth rate.
The Korea Insurance Research Institute made the forecast during a seminar on the "2027 Insurance Industry Outlook and Challenges" held today (October 22).
The insurance industry's growth rate is estimated to drop by 4.5 percentage points from this year's projected 8.0%.
This continues a downward trend following 2025 (11.0%).
The total volume of premium income is projected to reach 299 trillion won, with life insurance premium income increasing by 2.3% and non-life insurance direct written premiums growing by 4.5%.
Excluding retirement pensions, the growth rates are expected to rise to 4.0% for life insurance and 5.0% for non-life insurance.
Life insurance is expected to maintain its growth centered on protection-type insurance.
Non-life insurance is expected to grow primarily centered on long-term personal insurance within long-term non-life insurance, though the growth rate is expected to slow slightly.
Automobile insurance is estimated to grow by 3.0% due to the weakening effect of this year's premium hikes.
Eighty-nine percent of the increase in premium revenue is expected to be concentrated in protection-type insurance for life insurers and long-term non-life insurance for non-life insurers.
The Korea Insurance Research Institute analyzed that regulations to be implemented next year—such as the reorganization of commission structures, the General Insurance Agency (GA) operational risk evaluation system, the Tier 1 capital ratio system, and the advancement of actuarial assumptions—could temporarily limit growth capacity.
The institute suggested that next year's tasks should focus on strengthening the profit base of existing coverage while reallocating resources to new growth areas such as retirement income, health and care, and corporate risks.
The Korea Insurance Research Institute stated, "Insurance companies should pursue the integration of coverage and services, asset-liability and liquidity management by contract group, and the redesign of insurance claim and payout operations."
On the policy front, it added that support is needed to refine the business scope and service quality standards for new ventures, secure the enforceability of improvement plans for the Own Risk and Solvency Assessment (ORSA) framework, and secure control over artificial intelligence (AI) and external outsourcing.
In his opening remarks, President Kim Hun-soo emphasized consumer trust, stating, "We must build risk management capabilities to close the protection gap and achieve growth that consumers can tangibly experience."
(Photo courtesy of the Korea Insurance Research Institute, Yonhap News)
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