SEOUL — South Korea’s travel insurance market is experiencing unprecedented growth, driven by a sharp rise in international travel. According to Business Korea, travel insurance premiums reached a record high in 2024 and have already outpaced last year’s figures in the first quarter of 2025.
The resurgence in overseas travel has spurred intense competition among non-life insurers, prompting them to cut prices and introduce innovative services to capture a larger share of the expanding market. Premiums collected from travel insurance products offered by nine domestic non-life insurers — including industry leaders Samsung Fire & Marine, Hyundai Marine & Fire, KB, and Meritz Fire & Marine — reached 90.2 billion won (approximately USD 63.2 million) in 2024, marking a 16.7% increase from the previous year’s 77.3 billion won.
Over 90% of the demand is driven by Koreans traveling abroad, highlighting the importance of travel coverage in the post-pandemic recovery period.
Previously dominated by digital-first players like Shinhan EZ and Kakao Pay, the market is now seeing major insurers enter with more specialized offerings. Kakao Pay, for instance, garnered over 3 million cumulative subscribers in just under two years, thanks to unique incentives like a “safe return bonus” for claim-free travelers.
The growing competition and evolving product landscape indicate that South Korea’s travel insurance sector is becoming a key battleground for insurers aiming to capitalize on the country’s renewed appetite for global travel.
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