Life insurers turn to asset management for new revenue stream

In response to declining profitability stemming from increased life expectancy and broader demographic shifts, life insurance companies are increasingly expanding into asset management as an alternative revenue stream, industry officials said on Thursday. The officials said the strategic shift toward asset management has been accelerated by stricter financial reporting standards, particularly the adoption of International Financial Reporting Standard 17 (IFRS 17) in 2023. Developed by the London-based IFRS Foundation, IFRS 17 places greater emphasis on the rigorous accounting and transparent reporting of asset management activities in the financial statements of insurance companies. According to the Financial Supervisory Service (FSS), the net profit of 22 life insurers nationwide amounted to 3.33 trillion won ($2.4 billion) in the first half of 2025. The amount was 311.6 billion won lower than the previous year, mainly due to a decline in underwriting profits — the core business function of assessing risks when providing coverage to policyholders. On the other hand, the life insurers hWeiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times