SEOUL, Oct. 22 (Yonhap) -- South Korean insurance firms are expected to log slower growth next year on increased costs and an aging population, a report showed Thursday.

According to the report by the Korea Insurance Research Institute (KIRI), the local insurance sector is likely to grow 3.5 percent next year, sharply slowing from this year's estimated 8 percent, marking a slowdown for the second consecutive year.

In 2025, the sector expanded 11 percent.

The life insurance sector is forecast to grow 2.3 percent next year, and the non-life insurance segment is projected to expand 4.5 percent.

Their combined premium income for next year is forecast to stand at 299 trillion won (US$225 billion), rising 2.3 percent from this year.

South Korea's insurance industry has been struggling with lackluster growth for years as demand for insurance policies has fallen amid low interest rates and a slowing economy.

The premium growth rate fell 1 percent in 2017, 0.2 percent in 2018 and is likely to grow 0.3 percent this year, according to the report.

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