The motor insurance industry in South Korea is expected to see robust growth over the next four years, according to a new report from the UK based research firm BRICdata.
According to South Korean law, all car users must purchase compulsory automobile liability insurance which provides insurance cover against physical injury or death caused to a third party in a road accident.
During the review period (2007-2011), the implementation of the mandatory motor insurance policy has been one of the main growth factors for South Korean motor insurance.
The South Korean government has passed several support schemes to encourage consumer spending and support the expansion of the country’s automobile industry during the review period.
The government’s support schemes include multiple tax benefits for consumers who buy new cars and trade in vehicle models bought prior to 1999 which drove the South Korean motor insurance category growth during the review period.
During the review period, the written premium value of the South Korean motor insurance category grew at a compound annual growth rate (CAGR) of 1.6% which was supported by the introduction of mandatory motor insurance policies and by the country’s rising number of passenger car sales.
Over the forecast period (2012-2016), the South Korean motor insurance category is expected to grow at a rapid rate.
The rapid development of automobile sales is anticipated to fuel motor insurance growth over the forecast period.
The full report ‘Emerging Market and Investment Opportunities in South Korean Motor Insurance to 2016’ is available from BRICdata. Click here for more details.