HONG KONG, May 19 (Bernama-BUSINESS WIRE) —AM Best is maintaining its stable outlook on South Korea’s non-life insurance market, due to the segment’s record profitability as a result of significant improvement in automobile results and steady investment performance.
AM Best notes in its Best’s Market Segment Report, titled, “Market Segment Outlook: South Korea Non-Life Insurance,” that the non-life insurance industry’s net profits rose by 72% in 2021 to a record-high of KRW 3.7 trillion (USD 3.0 billion), thanks to markedly improved underwriting performance, especially in the automobile insurance line. “Although automobile claims are likely to rise in 2022 given the lifting of most COVID-19 restrictions, the larger premium base resulting from previous rate increases, as well as improving cost efficiency, will help the industry effectively manage its automobile profitability over the next 12 months,” said Chanyoung Lee, associate director, analytics, AM Best.