Numerous foreign reinsurers like Asia Capital Reinsurance Group or Pacific Life Re have scheduled their entry into the South Korean reinsurance market, thus joining Hannover Re, Munich Re and Swiss Re. Some insurers such as AIG General Insurance are strengthening their reinsurance department with a view to offsetting the lack of opportunities of the totally saturated non life direct market.
Experts are expecting the dominant position of Korean Re, in control of approximately 60% of the local market, to fade away. Competition between reinsurers is therefore poised to gather momentum during upcoming renewals. In response to this situation, Korean Re is attempting to get more diversified, especially in China and Dubai. Nearly 20% of its premiums are essentially accounted for by foreign markets.