Fitch forecasts consolidation in S Korea

Asia

The South Korean life insurance market is showing signs of good growth potential with its robust economic conditions and greater spending power and risk awareness of consumers, said rating agency Fitch in a new report on the market. During the last three years, foreign and smaller foreign players have won market share from the dominating three largest players; Samsung Life, Korea Life and Kyobo Life. Fitch predicted that the consolidation trend will continue for the next few years and will “further intensify market competition and weed out the smaller and weaker players leading to a tighter and more efficient market”. The Korean regulatory authorities will allow life insurers to list on the stock exchange for the first time. Fitch said the move will provide firms with greater access to the capital markets.