Korea Insurance: CPI control clouds 2027 health premium hike upside; prefer SGI/ Korean Re

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Korea Insurance: CPI control clouds 2027 health premium hike upside; prefer SGI/ Korean Re

J P M O R G A N Asia Pacific Equity Research

28 June 2026

Korea Insurance

CPI control clouds 2027 health premium hike

upside; prefer SGI/ Korean Re

Korea’s non-life insurers have underperformed the market over the past week (- Insurance

AC10% average vs KOSPI -7%). Until recently, we believed the market had MW Kim

increasingly priced in sufficient scope for a health premium hike at the Jan-27 (852) 2800-8517

renewal, following significant YTD underwriting deterioration and the regulator’s mw.kim@jpmorgan.com

official 2025 statistics on worsening medical indemnity claims (link). As such, we J.P.MorganMorganBrokingSecurities(Hong (AsiaKong)Pacific)LimitedLimited/ J.P.

think the top three non-life insurers’ current consensus forecast of 14% oya net

Julia Kim

profit growth in 2027E (Figure 3KoreaInsurance:FY26E/27Econsensusnetprofitforecasts) already partially reflects this underwriting (852) 2800-8540

upside. However, we are turning more cautious on the potential scale of 2027 julia.c.kim@jpmorgan.com

premium hikes, after the government reiterated its focus on keeping CPI growth at J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

Morgan Broking (Hong Kong) Limited

or below 3%, alongside plans to freeze public utility bills, including electricity and

gas. This matters for insurers, as medical indemnity premiums carry a higher CPI Dan Wang

(86-21) 6106-6349

weight than auto insurance premiums. Any constraint on medical indemnity dan.wang@jpmorgan.com

premium hikes could, therefore, become a key discussion point during the 1H SAC Registration Number: S1730524080001

reporting season in August. Hyundai M&F appears most exposed to a longer- J.P.