Stock rally lifts sales of investment-linked pension insurance
Younger investors, pet owners drive changing demand
A stock ticker in the dealing room of Hana Bank's headquarters in Seoul shows the benchmark KOSPI at 7,281.24 during intraday trading, Wednesday. Yonhap
An unprecedented rally in Korean stocks this year has sparked a surge in demand for investment-linked pension insurance, according to data released by Toss Insurance, Wednesday.
The insurer said variable annuities, a type of pension insurance that invests part of policyholders’ premiums in assets such as stocks and bonds, emerged as one of the standout products in the first half of the year. The findings are based on policies purchased through insurance advisers on the Toss platform.
Interest accelerated as the benchmark KOSPI extended its record-breaking rally this year, topping the 9,000-point mark for the first time in June and boosting retail investors’ appetite for market-linked investment opportunities.
Such momentum naturally lifted overall pension insurance sales, with new policies purchased through Toss Insurance climbing 78.1 percent from a year earlier.
While customers in their 50s and older remained the largest buyers, a notable increase was seen in younger consumers, with new policies purchased by those in their 20s and younger surging 97.5 percent.
The shift points to growing concern among younger Koreans over retirement security, prompting many to begin building private pension savings much earlier than previous generations.
Another standout was pet insurance, reflecting the continued expansion of Korea’s so-called “pet economy.”
New pet insurance policies increased 80 percent from a year earlier, the strongest growth of any category tracked by Toss Insurance. The company attributed the rise to a growing pet-owning population and an expanding range of policies offering broader coverage.
An estimated 15.46 million people in Korea — about 30 percent of the population — owned pets in 2024, yet only 1 to 2 percent of pet-owning households carry pet insurance.
That gap has started to narrow as veterinary costs climb. According to KB Financial Group, households that sought medical treatment for their pets spent an average of 1.46 million won ($980) in 2025, roughly twice as much as in 2023, encouraging insurers to broaden their product offerings.
“The KOSPI rally has fueled interest in investing, while more younger consumers are looking for ways to prepare for future financial risks,” a Toss Insurance official said. “At the same time, demand is becoming far more personalized,” as reflected in the rapid growth of products like pet insurance.