Workplace Injuries Drive Insurance Demand Among South Korean Companies

Mashrukh Khan: South Korean companies are turning more attention toward insurance and risk transfer solutions as they grapple with heightened concerns over workplace injuries and a tougher regulatory environment. According to a recent survey from Aon, workplace safety issues have climbed in priority amid stricter enforcement of the Serious Accidents Punishment Act, pushing many businesses to review how they protect themselves against potential liabilities.

The findings, drawn from Aons 2025 Global Risk Management Survey that included nearly 3,000 organisations across more than 60 countries, show that 64.3 percent of South Korean respondents already have some formal plan or review process in place for handling work-related injuries. Even more telling, 57.1 percent indicated they are actively considering insurance products or other forms of risk transfer to better manage these exposures going forward.

Competition remains the dominant worry for these organisations, both now and looking ahead. Half of the South Korean participants reported having suffered financial losses tied to competitive pressures, a figure notably higher than the Asia-Pacific and global averages. Yet surprisingly few, only about 17.4 percent, have put structured plans in place to address risks stemming from market rivalry.

The survey also pointed to rising awareness of other threats. Natural catastrophes moved up the ranks after significant economic hits from wildfires and flooding last year, while liquidity and cash flow concerns have re-entered the top ten risks for the first time since 2019. On a more positive note, companies appear relatively well prepared when it comes to liquidity management, with nearly 79 percent maintaining formal processes in that area.

Broader enterprise risk management still shows room for growth in South Korea. Just a quarter of organisations said they use a comprehensive, company-wide approach to spotting major risks, and a mere 2.9 percent rely on quantitative analytics to model scenarios or shape their insurance strategies. As regulatory scrutiny intensifies and operational pressures mount, experts suggest that more firms may look to sophisticated insurance arrangements not only for workplace injuries but also to build greater overall resilience. This shift could signal a maturing approach to risk in one of Asias most dynamic economies.