Performance analysis of Korean life insurance companies

Abstract

At 1he end of 1997, Korea was forced to seek assistance from the IMF due to a serious shortage of foreign currencies. Rapid environmental changes in the insurance industry have made the business prospect of life insurance companies unfavorable and complicated. As an effort to understand the situation, this study analyses the business performance of Korean life insurance companies The aim of this study is to analyze the key factors driving the performance of life insurance companies and develop optional strategies for newcomers. A Model Company with capital of 10 billion won was hypothesized to make this analysis more efficient. The five years business operations of newcomers were analyzed for the purpose of making hypotheses. The influence of changes in the performance drivers was analyzed by the use of profit forecasting.