Insurance companies are enhancing their caregiving insurance offerings while expanding into senior housing, care, and asset management. The senior market is emerging as a new growth driver due to increasing demand for care and the need for managing retirement assets as the population ages.
According to the insurance industry on September 2, Hyundai Marine & Fire Insurance has recently established a subsidiary, Hyundai HXP, to prepare for its senior housing business. Hyundai HXP, fully owned by Hyundai C&R, will focus on operating senior housing and training, leasing, and consulting specialized personnel.
Hyundai Marine & Fire Insurance plans to leverage its existing customer base among seniors through health, living support, and housing services. The company is emphasizing senior housing that combines health management with cultural and leisure services, rather than traditional care facilities.
KB Life has created a 'Senior Wellness Promotion Team' under its New Business Promotion Division, expanding its dedicated workforce to over 20 employees. Through its specialized subsidiary, KB Golden Life Care, the company operates facilities in Wirye, Seocho, Eunpyeong, Gangdong, and Gwanggyo Village, as well as a day care center in Pyeongchang County. This strategy aims to broaden customer engagement beyond insurance payouts to include care and support services.
Financial products for managing senior assets are also expanding. Hanwha Life recently launched a 'Dementia Care MMT,' which combines a regular deposit trust with a dementia-related rider. This product allows customers to set payment methods while healthy, enabling the trustee to cover care costs from the trust assets after a moderate or severe dementia diagnosis.
NH Nonghyup Life and NH Nonghyup Bank plan to apply for innovative financial services related to private housing pensions with the Financial Services Commission this month. This structure aims to provide retirement income by utilizing homes owned by seniors. Specific eligibility criteria and operational methods will be finalized during the application process. Nonghyup Life is also preparing to expand non-financial healthcare services, including care and caregiving.
Competition in caregiving insurance is intensifying among non-life insurance companies. Samsung Fire & Marine Insurance recently introduced a rider that combines caregiver support services with caregiving cost coverage. This feature supports 24-hour caregiving and eliminates additional fees based on patient weight, reflecting the growing number of single-person households that find it difficult to rely on family for care.
The insurance industry's focus on the senior market is driven by rapid aging and the increase in senior assets. According to an analysis based on the National Statistical Office's household financial welfare survey and household estimates, the net assets of individuals aged 60 and older amount to 430.7 trillion won. The Low Birthrate and Aging Society Commission estimates that 'dementia money,' which may become difficult to manage due to cognitive decline, will rise from 154 trillion won in 2023 to 488 trillion won by 2050.
The number of dementia patients is also increasing rapidly. According to the Insurance Research Institute, the number of dementia patients aged 60 and older in South Korea is expected to rise from about 1.01 million in 2025 to 1.83 million in 2040 and 2.29 million by 2050.
An industry insider stated, "Demand for existing whole life insurance has been greater among seniors than younger individuals. As the retirement population and cases of caregiving and dementia increase, the insurance industry is competing over coverage limits and premiums."
According to the insurance industry on September 2, Hyundai Marine & Fire Insurance has recently established a subsidiary, Hyundai HXP, to prepare for its senior housing business. Hyundai HXP, fully owned by Hyundai C&R, will focus on operating senior housing and training, leasing, and consulting specialized personnel.
Hyundai Marine & Fire Insurance plans to leverage its existing customer base among seniors through health, living support, and housing services. The company is emphasizing senior housing that combines health management with cultural and leisure services, rather than traditional care facilities.
KB Life has created a 'Senior Wellness Promotion Team' under its New Business Promotion Division, expanding its dedicated workforce to over 20 employees. Through its specialized subsidiary, KB Golden Life Care, the company operates facilities in Wirye, Seocho, Eunpyeong, Gangdong, and Gwanggyo Village, as well as a day care center in Pyeongchang County. This strategy aims to broaden customer engagement beyond insurance payouts to include care and support services.
Financial products for managing senior assets are also expanding. Hanwha Life recently launched a 'Dementia Care MMT,' which combines a regular deposit trust with a dementia-related rider. This product allows customers to set payment methods while healthy, enabling the trustee to cover care costs from the trust assets after a moderate or severe dementia diagnosis.
NH Nonghyup Life and NH Nonghyup Bank plan to apply for innovative financial services related to private housing pensions with the Financial Services Commission this month. This structure aims to provide retirement income by utilizing homes owned by seniors. Specific eligibility criteria and operational methods will be finalized during the application process. Nonghyup Life is also preparing to expand non-financial healthcare services, including care and caregiving.
Competition in caregiving insurance is intensifying among non-life insurance companies. Samsung Fire & Marine Insurance recently introduced a rider that combines caregiver support services with caregiving cost coverage. This feature supports 24-hour caregiving and eliminates additional fees based on patient weight, reflecting the growing number of single-person households that find it difficult to rely on family for care.
The insurance industry's focus on the senior market is driven by rapid aging and the increase in senior assets. According to an analysis based on the National Statistical Office's household financial welfare survey and household estimates, the net assets of individuals aged 60 and older amount to 430.7 trillion won. The Low Birthrate and Aging Society Commission estimates that 'dementia money,' which may become difficult to manage due to cognitive decline, will rise from 154 trillion won in 2023 to 488 trillion won by 2050.
The number of dementia patients is also increasing rapidly. According to the Insurance Research Institute, the number of dementia patients aged 60 and older in South Korea is expected to rise from about 1.01 million in 2025 to 1.83 million in 2040 and 2.29 million by 2050.
An industry insider stated, "Demand for existing whole life insurance has been greater among seniors than younger individuals. As the retirement population and cases of caregiving and dementia increase, the insurance industry is competing over coverage limits and premiums."
* This article has been translated by AI.
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