The outlook for South Korea’s non-life insurance market remains stable, according to AM Best, but increasing losses and intense competition in the automobile and long-term insurance lines, as well as rising interest obligations, may put pressure on the sector’s overall profitability.
According to a report by the international insurance credit ratings agency, the outlook for South Korea’s market is supported by its broadly stable market dynamics, despite slowing growth and declining underwriting profitability in the automobile and long-term insurance lines. The study also factored in the potential for relief on underwriting pressure should the automobile pricing cycle harden and competition in the long-term insurance line cool, as well as an overall positive bottom line supported by a continuous stream of net investment profits.
You've reached your limit - Register for free now for unlimited access
To read the full story, and get unlimited access to Insurance Business website content, just register for free now. GET STARTED HERE
Already a website member? Log in below.