HONG KONG, Nov 6 (Bernama-BUSINESS WIRE) — AM Best is maintaining a stable market segment outlook on South Korea’s non-life insurance market, although increasing losses and intense competition in the automobile and long-term insurance lines, as well as rising interest obligations, may pressure the sector’s overall profitability.
A new Best’s Market Segment Report, titled, “Market Segment Outlook: South Korea Non-Life Insurance,” states that supporting the stable outlook are broadly stable market dynamics, despite slowing growth and declining underwriting profitability in automobile and long-term insurance lines. The potential for relief on underwriting pressure should the automobile pricing cycle harden and competition in the long-term insurance line cool, and an overall positive bottom line supported by a continuous stream of net investment profits also are factors in the outlook.
