Best's Market Segment Report: AM Best Maintains Stable Outlook on South Korea's Non-Life Insurance Market
Additional factors include moderate growth in the long-term and general insurance segments, and efforts to improve profitability in the former as well as in investment strategies. However, AM Best notes an offsetting factor of slow growth prospects and weakened underwriting profitability in South Korea's auto insurance segment.
According to the Best's Market Segment Report, "Market Segment Outlook: South Korea Non-Life Insurance," the country's non-life insurance industry is facing capital pressure with increasing insurance liabilities, following the Financial Supervisory Service's (FSS) push for more realistic actuarial assumptions and a phased plan to cut discount rates until 2027, which are intended to improve credibility and comparability of insurers' financials.
"These ongoing regulatory changes, coupled with a decreasing trend in domestic interest rates, are expected to pose a considerable burden on insurers' solvency, especially those with relatively weaker capital positions," said Seokjae Lee, senior financial analyst, AM Best. "However, AM Best expects these changes will promote economic value-based capital management for insurers to maintain sound capital adequacy across the industry."
Over the next 12 months, AM Best expects the industry to experience moderate growth with heightened emphasis on profitability management of long-term insurance following a few years of intensified market competition and with a focus on mitigating increasing solvency pressures.
According to the report, the auto insurance segment has experienced a slowdown in its premium growth in recent years, owing to sluggish vehicle registrations and cumulative premium rate cuts to support the consumer economy. A notable trend is a high and increasing market concentration among large insurers. "With the fast-growing online auto insurance market, large insurers are more likely to maintain premium growth as they benefit from factors such as economies of scale, strong marketing capability and digital infrastructure," said Chanyoung Lee, director, AM Best.
To access the full copy of this market segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=354314.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250603412061/en/
Contacts
Seokjae LeeSenior Financial Analyst +852 2827 3407 seokjae.lee@ambest.com
Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 christopher.sharkey@ambest.com
Chanyoung Lee Director, Analytics +852 2827 3404 chanyoung.lee@ambest.com
Cynthia Ang Senior Industry Research Analyst +65 6303 5026 cynthia.ang@ambest.com
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Wire
2 hours ago
- Business Wire
FPT Becomes SAP PartnerEdge, Sell Partner in Singapore, Malaysia, and Thailand
BUSINESS WIRE)--Global technology corporation FPT has joined the SAP PartnerEdge program as a Sell partner in selected countries in Southeast Asia. With an initial focus on Singapore, Malaysia, and Thailand, this strategic expansion further strengthens FPT's expertise in digital transformation, opening new avenues for regional enterprises to accelerate cloud adoption, streamline operations, and drive innovation with SAP's industry-leading solutions. Through the SAP PartnerEdge program, FPT is now expanding its capabilities to offer an even broader suite of SAP solutions, providing end-to-end support for businesses' digital transformation. Through the SAP PartnerEdge program, FPT is now expanding its capabilities to offer an even broader suite of SAP solutions, including SAP Cloud ERP, SAP Cloud ERP Private, SAP Business Technology Platform (SAP BTP), and more. This enables the tech firm to seamlessly integrate these solutions with its own services, providing end-to-end support for businesses' digital transformation, ranging from consultation to implementation and ongoing optimization. By combining SAP's robust platform with FPT's expertise in AI and industry-specific solutions, the collaboration also deepens FPT's engagement with SAP's global ecosystem, allowing businesses across sectors to access tailored, integrated solutions that facilitate a faster and more efficient path to digital success. As part of this expansion effort, FPT also announces the launch of the FPT Center of Excellence (CoE) for SAP Cloud, a strategic initiative designed to accelerate the adoption of SAP Cloud solutions and SAP Business Suite across Southeast Asia. The FPT CoE will serve as a hub for innovation, driving significant value for both FPT and its customers while advancing cloud-powered transformation for regional enterprises—an essential step in leveraging the full potential of AI. 'Becoming an SAP PartnerEdge, Sell partner reinforces our commitment to delivering seamless, high-impact solutions for both existing customers and regional enterprises seeking innovation,' said Tristan Ngo Minh Tri, FPT Software Vice President and Director of Enterprise Business Services Unit, FPT Corporation. 'With over 1,500 certified consultants, deep expertise in SAP technologies, and the Best-Shore Delivery Model, FPT is poised to drive transformative change and empower organizations to fully harness the potential of intelligent transformation, enabling them to drive sustainable growth and stay ahead in an increasingly digital world,' he added. 'As the first partner headquartered in Southeast Asia to join the SAP Regional Strategic Services Partner initiative, FPT has deepened its collaboration with SAP and is now an SAP PartnerEdge, Sell partner in Singapore, Malaysia, and Thailand. Congratulations to FPT for meeting the program entry requirements. We look forward to driving more impactful, AI-powered business outcomes for our customers, together,' said Deepak Kaushik, Chief Partner Officer, SAP Southeast Asia. FPT's collaboration with SAP dates back to 2003, marked by a series of successful digital transformation initiatives across key sectors such as manufacturing, BFSI, and energy. In 2023, FPT advanced the collaboration by joining the SAP® Regional Strategic Services Partner (RSSP) initiative, designed to expand the capabilities and reach of established partners within the APJ region. Building on the momentum, FPT also launched FPT BTP Park in 2025 to accelerate the growth of the SAP Business Technology Platform (SAP BTP) adoption in Japan. Over more than two decades, FPT's commitment to excellence has been recognized with multiple SAP accolades, including SAP Partner of the Year for Vietnam for 6 consecutive years, Outstanding Performance in Midmarket Partner of the Year 2025, Best RISE Partner of the Year 2025, and SAP APJ Partner Excellence Award 2025 for Regional Strategic Services Partner. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE in Germany and other countries. Please see for additional trademark information and notices. All other product and service names mentioned are the trademarks of their respective companies. About FPT FPT Corporation (FPT) is a globally leading technology and IT services provider headquartered in Vietnam and operates in three core sectors: Technology, Telecommunications, and Education. Over more than three decades, FPT has consistently delivered impactful solutions to millions of individuals and tens of thousands of organizations worldwide. Committed to elevating Vietnam's position on the global tech map and delivering world-class AI-enabled solutions for global enterprises, the Corporation focuses on three critical transformations: Digital Transformation, Intelligence Transformation, and Green Transformation. In 2024, FPT reported a total revenue of USD 2.47 billion and a workforce of over 54,000 employees across its core businesses. For more information about FPT's global IT services, please visit
Yahoo
3 hours ago
- Yahoo
Clean Jeju Green Tea Cooperative ‘Sumang' to Launch New Hojicha Product This August
JEJU, South Korea, August 18, 2025--(BUSINESS WIRE)--Clean Jeju Green Tea Agricultural Cooperative 'Sumang' has announced that it plans to launch a new product—Hojicha—in August. Hojicha is a roasted green tea made by pan-firing tea leaves at high temperatures, known for its rich, nutty aroma and low caffeine content. Sumang is a vertically integrated producer that grows, processes, and sells organic green tea in Jeju Island. Benefiting from ideal tea-growing conditions—including proximity to the sea, warm temperatures, and frequent mist—the cooperative has been able to cultivate high-quality tea with a consistent moisture supply during the growth period. Recently, global interest in health and wellness has fueled rising demand for matcha, particularly in the United States. Exports have been steadily rising, and inquiries from international buyers are also growing. While many matcha products are flooding the market, consumers often struggle to find high-quality, properly graded matcha. The cooperative's "Sumang Tea Garden" brand offers matcha in three distinct grades: Ceremonial, Premium, and Superior, giving consumers a variety of options tailored to their taste and intended use. CEO Kyungmin Kang said, "While we currently focus on B2B transactions, our ultimate goal is to expand into direct-to-consumer channels with a comprehensive distribution network," adding, "We are committed to offering high-quality products at affordable prices." About Sumang Since 2007, Sumang has produced Jeju green tea of the highest quality, provided by the natural environment of Jeju Island, South Korea. Abiding by the strict rules of the Clean Jeju Green Tea Agricultural Cooperative, Sumang offers products that promote both health and environmental sustainability. View source version on Contacts SumangKyungmin Kang+82-64-739-8033tolkm@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
3 hours ago
- Business Wire
Clean Jeju Green Tea Cooperative ‘Sumang' to Launch New Hojicha Product This August
BUSINESS WIRE)-- Clean Jeju Green Tea Agricultural Cooperative 'Sumang' has announced that it plans to launch a new product—Hojicha—in August. Hojicha is a roasted green tea made by pan-firing tea leaves at high temperatures, known for its rich, nutty aroma and low caffeine content. 'While we currently focus on B2B transactions, our ultimate goal is to expand into direct-to-consumer channels with a comprehensive distribution network.' Sumang is a vertically integrated producer that grows, processes, and sells organic green tea in Jeju Island. Benefiting from ideal tea-growing conditions—including proximity to the sea, warm temperatures, and frequent mist—the cooperative has been able to cultivate high-quality tea with a consistent moisture supply during the growth period. Recently, global interest in health and wellness has fueled rising demand for matcha, particularly in the United States. Exports have been steadily rising, and inquiries from international buyers are also growing. While many matcha products are flooding the market, consumers often struggle to find high-quality, properly graded matcha. The cooperative's 'Sumang Tea Garden' brand offers matcha in three distinct grades: Ceremonial, Premium, and Superior, giving consumers a variety of options tailored to their taste and intended use. CEO Kyungmin Kang said, 'While we currently focus on B2B transactions, our ultimate goal is to expand into direct-to-consumer channels with a comprehensive distribution network,' adding, 'We are committed to offering high-quality products at affordable prices.' About Sumang Since 2007, Sumang has produced Jeju green tea of the highest quality, provided by the natural environment of Jeju Island, South Korea. Abiding by the strict rules of the Clean Jeju Green Tea Agricultural Cooperative, Sumang offers products that promote both health and environmental sustainability.
