Surge in International Travel Boosts Travel Insurance in South Korea
South Korea experienced a significant increase in travel insurance premiums in 2024, reaching an all-time high due to a surge in overseas travel. The trend continues into 2025, with the first quarter already surpassing last year’s performance for the same period.
According to a report in Business Korea, travel insurance premiums from nine domestic non-life insurers, including major players like Samsung Fire & Marine, Hyundai Marine & Fire, KB, and Meritz Fire & Marine, hit 90.2 billion won ($63.2 million) in 2024. This represents a 16.7% increase from the previous year’s 77.3 billion won.
Over 90% of travel insurance demand comes from overseas travelers. The market has seen increased competition among non-life insurers, who are engaging in aggressive price competition and offering differentiated services to attract customers.
The travel insurance segment, previously dominated by mobile-based insurers like Shinhan EZ and Kakao Pay, has seen a shift with the entry of larger companies introducing specialized travel insurance products. For instance, Kakao Pay achieved 3 million cumulative subscribers in just 1 year and 8 months by offering a safe return bonus if no accidents occurred.
As international travel continues to drive demand for travel insurance, major non-life insurers are expected to maintain their competitive strategies, potentially leading to more innovative products and services in the market.
