South Korean insurers are expected to raise premiums and cut benefits across health and motor cover as claims continue to rise, according to analysis by Daishin Securities.
Major non-life companies have seen risk loss ratios climb for six consecutive quarters, since the second quarter of 2024, with average risk losses among leading insurers now approaching 100% in the latest quarter.
The report notes that claims are increasing across multiple cover types, including general health, dementia, long-term care, and simplified health products, rather than being limited to a single category as in previous cycles.
Health-linked products have been particularly affected. Insurers increased their share of health product sales in recent years, and providers now report significantly higher payouts, with recent claims ratios in some categories estimated to exceed expected levels by more than 10 percentage points, according to press reporting cited in the note.
Daishin Securities indicates that many insurers are expected to implement premium increases, product restructuring, and benefit reductions from next year, in response to higher claims and evolving long-term loss trends. Examples include reduced benefit limits in certain medical policies and narrower coverage in specific health-related products.
Auto-related insurance is also likely to be affected through changes to driver-cover benefits, including reduced legal-expense coverage and the introduction of self-payment requirements, rather than adjustments to base motor pricing.
The report suggests that loss-ratio pressures may continue into the first half of 2026 despite these expected adjustments, with cost trends unlikely to stabilise immediately. As insurers continue to face increased payout levels, further changes to premiums and coverage in both health and auto-linked segments remain possible across the domestic market.
