Korean Reinsurance : · Overview of Korea's Insurance Take-...

In 2016, the insurance take-up rate per household in Korea is 96%, meaning that most households have at least one insurance policy, according to an annual survey by the Korea Insurance Research Institute.

Around 82% of households have life insurance policies (3.4 policies per household), while the non-life insurance take-up rate was 88.9% (3.5 policies per household). In general, the insurance take-up rates fell in 2016 compared to the previous year in all categories - by region, age and income. The decreases in take-up rates were particularly noticeable among low-income households and those in their 60s or older.

In terms of individuals, more than nine out of ten persons hold insurance policies, with the overall insurance take-up rate of individuals hovering around 94%. The life insurance take-up rate is 73.4%, while the rate for non-life insurance is 76.2%.

As for life insurance, the take-up rate of women is 76.9%, higher than that of men (69.9%), whereas the non-life insurance take-up rate of men is 95%, well above that of women (66.5%). Young adults in their 20s and the elderly - those in their 60s or older - show relatively lower take-up rates in both life and non-life insurance.

By line of business in the life insurance sector, disease policies have the highest take-up rate of 69.4%, followed by medical expense insurance at 28.5%, death policies at 21.9% and annuities at 16.3%. In the non-life insurance sector, long-term insurance takes the leading spot at 67.4%.

The insurance take-up rate per household refers to the percentage of households where at least one member of the household has purchased an insurance policy.