While European insurers are being downgraded almost daily, Fitch has given a ‘stable’ outlook for the South Korean Life Insurance sector.
Fitch credited their decision to benign economic conditions in South Korea, continued demand for insurance policies, and increasing emphasis on prudent capital management.
“Premium growth is expected to be sustained in 2012, driven by an ageing population, greater spending power and rising risk-awareness among consumers,” Fitch said.
“The key growth areas are likely to centre on traditional protection-related, health insurance and pension products.”
The ratings company said it expects the implementation of a risk-based regulatory capital framework, in replacement of the previous more simplistic solvency margin regime, to strengthen the sector’s overall financial strength.
