South Korea’s non-life insurers—CI Guarantee (CIG), Korea Finance for Construction (KFINCO), Construction Guarantee (CG), and Seoul Guarantee Insurance (SGI)—are facing profitability challenges. Despite solid capital strength and favorable Prism Global scores, their financial performance lags behind industry standards.
Fitch Ratings notes these companies’ strong capital positions but also points out that their market shares are small relative to the broader non-life insurance sector. The focus on specific industries makes them vulnerable to economic downturns.
With high interest rates continuing, Fitch anticipates increased claim ratios, particularly due to pressures on real estate and project-financing loans.
