Korea’s auto insurance market has doubled in size over the past decade to become the world’s ninth largest, worth more than 10 trillion won ($8.1 billion) in sales, according to data from Korea Insurance Development Institute yesterday.
Combined premium payments to local auto insurers totaled 10.4 trillion won for the 2008 fiscal year for an average growth of 7.9 percent per year since 1999, when the total was just 5.2 trillion won, the institute said. That makes Korea the ninth-largest auto insurance market in the Organization for Economic Cooperation and Development, behind countries such as Japan, Italy, Germany, Britain and France. The number of registered cars climbed from 11.3 million in 1999 to nearly 17 million last year, helping boost insurance sales, the institute said.
In the United States, the world’s largest auto insurance market, combined annual premium payments on auto policies amounted to more than 240 trillion won.
The data over the past decade illustrate the changing attitudes and interests of insurance customers, including increasing awareness about coverage for property damage. In 1999, the policies of nearly 97 percent of auto insurance customers here covered only up to 20 million won in property damage.
But as of last year, 74.3 percent of insured drivers had signed up for policies that offered protection against damages worth up to 100 million won, partly, the institute speculated, out of an increased fear of car accidents now that a growing number of luxury sedans and expensive imported cars crowd Korea’s roads.
Indeed, premium payments to cover accident damage have soared by an average of 17.8 percent for each of the past 10 years to reach 5.4 trillion won as of last year. During the same period, premiums to cover bodily injury liability inched up by an average of 2.4 percent every year to reach 4.8 trillion won last year.
Combined premium payments to local auto insurers totaled 10.4 trillion won for the 2008 fiscal year for an average growth of 7.9 percent per year since 1999, when the total was just 5.2 trillion won, the institute said. That makes Korea the ninth-largest auto insurance market in the Organization for Economic Cooperation and Development, behind countries such as Japan, Italy, Germany, Britain and France. The number of registered cars climbed from 11.3 million in 1999 to nearly 17 million last year, helping boost insurance sales, the institute said.
In the United States, the world’s largest auto insurance market, combined annual premium payments on auto policies amounted to more than 240 trillion won.
The data over the past decade illustrate the changing attitudes and interests of insurance customers, including increasing awareness about coverage for property damage. In 1999, the policies of nearly 97 percent of auto insurance customers here covered only up to 20 million won in property damage.
But as of last year, 74.3 percent of insured drivers had signed up for policies that offered protection against damages worth up to 100 million won, partly, the institute speculated, out of an increased fear of car accidents now that a growing number of luxury sedans and expensive imported cars crowd Korea’s roads.
Indeed, premium payments to cover accident damage have soared by an average of 17.8 percent for each of the past 10 years to reach 5.4 trillion won as of last year. During the same period, premiums to cover bodily injury liability inched up by an average of 2.4 percent every year to reach 4.8 trillion won last year.
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