CASUALTY

The domestic casualty insurance market marked 4% growth in 2019 on the back of a steady expansion in liability lines of business. Driven by the government-led implementation and revision of compulsory insurance plans, we saw growing demand for liability insurance products such as disaster liability insurance, cyber insurance, personal data leakage liability insurance, and used vehicle inspection liability insurance. However, premium rates have decreased due to intensifying price competition in commercial insurance and workers’ compensation segments. Primary insurers continue to raise their retention level for liability lines.

Under these unfavorable conditions in the reinsurance industry, Korean Re reported a 10.1% increase in gross written premiums from casualty lines for 2019. Even after 9.5% of our personal accident business was slashed as part of a casualty portfolio adjustment, we were able to deliver this result by focusing on profitable special risks insurance and overseas business accounts. Special risks made up the largest part of the total casualty premiums, at 27.7%, followed by liability lines of business, at 22.8%, and personal accidents, at 17.9%.

We have also intensified cooperation with clients for our timely response to emerging needs in developing markets around the Fourth Industrial Revolution and environmental protection initiatives. Furthermore, we launched Warranty and Indemnity Insurance in 2019 to take advantage of the opportunities arising from growing domestic M&A activity.

On the back of steady growth, our overseas business accounted for 13.4% of the entire casualty portfolio in 2019. We will maintain our conservative approach to risk and market, and continue incremental expansion into the U.S. and Europe.

The domestic casualty reinsurance market in 2020 does not look much different from the previous year, as primary insurers are expected to stick to an aggressive retention strategy. Despite the challenging environment, we will keep working on to strengthen our portfolio and swiftly react to market needs to ensure profitable growth.