Thursday, October 19, 2017

Korea sees rise in sales of variable insurance policies

Premiums for variable insurance policies in Korea nearly doubled to W545.5 billion (US$477.2 million) during the first quarter of this year on the back of robust gains in the local stock market.

For the same three-month period last year, sales of variable insurance policies reached W215.2 billion, according to data released by the Korea Life Insurance Association.

Variable insurance policies have been marketed by life insurers as products that guarantee high returns, thereby luring customers.

Premiums from variable insurance are invested in stocks, bonds, mutual funds and other vehicles. So far this year, Korea’s main share index has gained some 17%.

The data on variable insurance policies came after analysts said life and non-life insurance companies in Korea expect to outperform their strong year in 2016 this year, benefiting from higher interest rates.

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