Rising Female Workforce Drives Insurance Companies to Embrace Women-Specific Products

As the number of economically active women continues to rise, insurance companies are increasingly targeting this growing demographic with specialized products

As the number of economically active women continues to rise, insurance companies are increasingly targeting this growing demographic with specialized products. Women’s insurance products are becoming essential offerings in the market, reflecting the significant influence women now hold in insurance purchasing decisions. This blog explores the trends and developments in women-focused insurance products, and why they are becoming a crucial part of insurers' portfolios.

Recent statistics highlight a notable increase in the number of economically active women in South Korea. According to the latest report from Statistics Korea, the number of women participating in the workforce has reached 13.21 million, an increase of 146,000 compared to the same period last year. Although this figure still trails behind the 16.55 million men in the workforce, the number of men has remained steady while the number of women has risen by 1.1%.

The economic activity rate for men stands at 73.8%, though it has decreased by 0.3 percentage points from last year. In contrast, women's participation rate has increased to 57.2%, up by 0.5 percentage points. Additionally, the number of non-working women has decreased by 206,000 to 9.99 million, showing a significant rise in women's social participation.

According to a report by the Insurance Research Institute, women generally have higher expenditures on healthcare services and a stronger risk aversion compared to men. This results in higher insurance enrollment rates among women, making them a key market segment with substantial growth potential.

Insurance companies have recognized this shift and are now prioritizing women-specific insurance products. These products have been performing well, contributing significantly to the insurers' sales. For instance, Hanwha General Insurance's signature women’s health insurance achieved sales of 10 billion won in new contracts by March this year. NH Nonghyup Life’s 'Pink Care NH Health Insurance,' launched in May, surpassed 20,000 policies sold within a month.

Furthermore, Heungkuk Fire & Marine Insurance introduced the 'Non-Dividend Heungkuk Good All-In-One Women MZ Insurance' in May, while Shinhan Life launched the 'Shinhan Health Protection Insurance ONE the Woman' in June. This month, Hyundai Marine & Fire Insurance and ABL Life Insurance also joined the competition with their first women-focused health insurance products.

Hyundai Marine & Fire Insurance noted, "While there have been insurance products emphasizing coverage for women before, this is the first time we are introducing a product specifically tailored to women." Similarly, ABL Life Insurance highlighted their 70th anniversary product as their inaugural women-specific insurance offering.

The trend towards women-specific insurance products aligns with the industry's broader move towards providing comprehensive protection-focused products. Women's insurance products are valued for their contribution to the insurance contract margins (CSM), making them a strategic choice for insurers.

Moreover, as the female-focused technology (FemTech) sector grows, insurance companies are developing new products to support women’s lifestyles. Women-specific insurance is thus becoming a necessity rather than an option in the current insurance market.

The increasing economic participation of women is reshaping the insurance landscape. With women-specific insurance products now essential offerings, insurers are capitalizing on this trend by developing products tailored to the unique needs of female clients. As the market evolves, insurance companies will continue to innovate and expand their portfolios to meet the demands of this growing and influential demographic.