분야
docx1. Property Insurance policies
2. Liability Insurance policies
Ⅱ. Nonlife Insurance Markets in the Asia-Pacific Region
Ⅲ Nonlife Insurance Markets in Korea
Ⅳ. Non-life insurance companies in Korea
In July 2008, Korea introduced social insurance for long-term care. There are several
important demographic and social changes leading to the introduction of long-term care
(LTC) insurance, including the rapid ageing of population as a result of the increase in life expectancy and the sharp decline in fertility. Total fertility rate is below 1.1 in 2005 (NSO,2007). The proportion of the elderly (persons over 65) in Korea is 9% in 2005, but it is forecasted to increase at an unprecedented rate. The proportion of the elderly is estimated to be 16% by 2020 and 38% by 2050, resulting in an old-age dependency ratio of 70% in 2050(NSO, 2007). With population ageing, demand for long-term care has increased. But family structure has also changed, and the proportion of the elderly living with adult children has decreased to 38% in 2004. Availability of informal or family care givers diminishes as women’s labor participation is increasing and their willingness to provide care decreases. 36% of those who receive long-term care get care from their spouse. Problems of social admissions of the elderly also arise because the supply of LTC facilities is limited and there is no public financing for long-term care, while health care is covered by health insurance program.
(3) Auto Insurance
South Korea auto insurance industry has always been an important part of its overall insurance business. Number of premiums written in South Korea automobile insurance industry has grown at a rate of more than 18 percent since 1983 when monopolized South Korean insurance market was made accessible to liability and property insurance companies. There are certain important factors behind this quick rise of automobile insurance industry of South Korea like sudden increase in use of cars in South Korea and mandatory automobile liability insurance policies. In 2005 auto insurance industry in South Korea amounted for 35.2 percent of direct premiums. South Korea auto insurance has not been a profitable industry after financial restructuring of 1983. There has been only two times when it has made profits in underwriting – in 1997 and 1998. Losses in underwriting have normally been offset, either totally or in part, by profits made in investments. However, this has been a chronic problem. Much of this situation could be blamed on strictures of governmental regulations in South Korea. There have been demands for changes and some alterations have been effected as well. For instance premiums have been increased. However, these changes have not proved to be entirely fruitful.
