Downsize - South Korean Insurance Industry Cutting on Solicitors

Released on: January 24, 2008, 9:15 pm

Press Release Author: Shushmul Maheshwari

Industry: Media

Press Release Summary: Insurance has become a need of the modern era and South
Korean insurance industry has proved it just right. But the country is downsizing
the number of insurance solicitors.

Press Release Body: South Korea, the East Asian country and the third largest Asian
economy, saw its insurance industry touching astronomical heights after the 1998
Asian financial crisis. And now, the country's insurance industry ranks at sixth to
eighth position in the world in terms of insurance penetration rate (Gross
Premium/GDP). Such was the extent of growth that during 2001-2005, growth
percentages recorded by the insurance premium written by life and non-life insurance
surpassed the life and non-life premium written globally, says "South Korean
Insurance Industry Analysis (2007)", a scrupulous research report by the leading
market research company RNCOS. The report has evaluated the various market products,
broadly classified into life and general (non-life) insurance.

Life insurance sector in South Korea, once considered a pool of opportunities, has
now turned into a well established market but growth has still not reached the peak.
But despite the growth in life insurance sector, the number of solicitors (the
natural person who aids an insurance broker/agent in transacting insurance other
than life and commercial lines) was reduced. The report has examined this to find
out the cause of this move.

Insurance solicitors operating in general insurance sector of South Korea deviated
from high growth path and reported a decline in number in 2005, says the RNCOS
report. It has identified the reason responsible for this slump in the number in
insurance solicitors.

The report has also detailed on what South Korea is doing to promote its insurance
industry. In the quest to highlight its insurance industry on international stage,
South Korea removed tariff barriers from the life and non-life insurance sectors in
2000 and 2002 respectively, thus opening the market for international players. Since
then, foreign players have bolstered their presence in the market, giving tough
competition to the domestic insurers.

"South Korean Insurance Industry Analysis (2007)" has systematically analyzed the
insurance market of South Korea and gives an insight into life and non-life
insurance sectors, whether in public or private ownership, together with their
future outlook. It says that insurance industry chips in a major part to the South
Korean economy and sales of insurance products supported its industries even during
the national emergencies, including the foreign currency crisis in late 1990s.

About RNCOS:

RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of
industry experts who analyze data collected from credible sources. They provide
industry insights and analysis that helps corporations to take timely and accurate
business decision in today\'s globally competitive environment.

For more information visit:
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Contact Details: RNCOS E-Services Pvt. Ltd.
Shushmul Maheshwari
Head of Business Development
29, 1st Floor, Patparganj Industrial Area, Delhi 92

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