The nation’s insurance market has entered saturation point with nearly 95 percent of households holding insurance policies, according to the Korea Insurance Development Institute (KIDI) on Sunday.

In a survey of 1,200 households nationwide, the institute found the per household insurance subscription ratio reached 94.7 percent this year, up 1.3 percentage points from 93.4 percent in 2003.

This means the domestic insurance industry may see slower growth going forward.

The ratio in life insurance stands at 88.3 percent, while 79.8 percent of households hold non-life insurance products.

The average yearly premium payment per household was 4.13 million won. Per household premiums for life insurance products reached 3.35 million, compared with 780,000 won in average, annual premiums for non-life insurance products.

Types of insurance products, which consumers favor, have changed. As of now, variable life insurance products are the most popular. Korean households pay 264,000 won in variable life insurance premiums a month.

In the non-life insurance sector, annual auto insurance premiums per household reached 613,000 won.

Savings and pension type insurances have emerged as the second, most popular non-life insurance products, the institute said.

Insurance sales channels have changed drastically of late. While salespeople remain a dominant insurance distribution channel, online sales have kept their growth.

Subscription to life insurance products via the Internet rose 7.6 percent to 12.4 percent in 2006 from 4.8 percent in 2004.

The KIDI said demand for private medical insurance products has been rising as Korean are burdened by an aging society. About 33 percent of respondents said they are willing to subscribe to private medical insurance products, if they are introduced.

The growth of the reverse mortgage market is expected to be slower than expected. Only 30 percent said they would consider purchasing an insurance product linked with reverse mortgages.

The institute added it might take considerable time for the establishment of the reverse mortgage market as Koreans regard houses as assets to keep to the end and hand them over to their descendants.