Stock rally lifts sales of investment-linked pension insurance

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 gr ...