South Korea's Dollar-Denominated Insurance Sales Surge 2x YoY as Redemptions Rise 50.4%: Study

According to a report released by South Korea's Insurance Research Institute on July 26, dollar-denominated insurance sales surged amid high won-dollar exchange rates, with first-quarter 2026 sales reaching approximately 47,000 contracts, more than double the same period last year. However, the Institute warned that short-term exchange rate expectations are driving sales growth, potentially leading to rising cancellation rates and consumer complaints.

Data showed that while the number of redemption cases in 2024 declined 3.9% year-over-year, redemption amounts increased 50.4%, with average redemption payouts rising 56.5%. Notably, guarantee-type dollar insurance products showed quarterly average redemption rates of 59.8% to 68%, creating significant principal loss risks for early withdrawals.