Last Year Reinsurance Revenue Nears 15 Trillion Won "Impact of K-ICS Response"

Last year, reinsurance revenue reached 14.9 trillion won, marking a 15.3% increase compared to the previous year, according to data released on the 3rd.

Reinsurance is insurance purchased by insurance companies themselves, where the insurer transfers the risk of large contracts that are difficult to bear alone to another insurer. The Financial Supervisory Service analyzed that "the increase in reinsurance utilization is due to responses to joint reinsurance transactions and the new insurance capital standard system (K-ICS)."

The market share of specialized reinsurance companies stands at 87.8%. By company, the shares were Korean Re (65.1%), SCOR (8.3%), and Swiss Re (5.8%) in that order. The operating profit and loss of specialized reinsurance companies was 310.7 billion won, a 9.1% decrease from 341.8 billion won the previous year.

Of the reinsurance premiums written, domestic transactions accounted for 11.6 trillion won (77.9%), while overseas transactions accounted for 3.3 trillion won (22.1%). A Financial Supervisory Service official stated, "As part of improving the financial soundness of insurance companies, demand for various reinsurance products is expected to increase," adding, "We will support domestic insurers in utilizing reinsurance as a risk management and financial soundness enhancement tool, while strengthening cooperation with overseas supervisory authorities to improve underwriting in markets such as Europe and North America."

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