Korean Insurers Shift Back To Protection Products

In the United States, life insurers continue to shift toward investment-oriented products, away from protection-oriented products.

In Korea, life insurers face a similar combination of low rates of return on their own investments and obligations to pay high, fixed rates of return on old annuities and endowment policies sold years ago.

To cope, Korean life insurers have shifted toward whole life products, accident insurance and other products that reduce exposure to investment risks, away from annuities, endowment policies and other savings-oriented products, North writes.