Solvency II (in Europe, 2016) and IFRS4 phase II (in Korea, 2020) implementation suggests that the insurance liabilities be evaluated by fair value measurement, not by cost evaluation. This paper studies methods to calculate the discount rate of insurance liabilities fit for Korean market environment, which is crucial for fair value measurement. This paper also analyzes the impact of the newly derived discount rate to the value of insurance liabilities. To calculate the risk free rate, we use the treasury bonds up to the maturity of 20 year. Unlike literatures, to calculate the liquidity premium, we first suggest the Covered Bond Method fit for Korean environment, in which the industrial finance bond is a substitute for the covered bond. We also suggest methods to generate declared interest rate and discount rate scenarios to evaluate insurance liabilities including guaranteed minimum value. We apply the newly derived discount rate to fixed and floating interest rate insurance products to compare with legal liability reserve, calculated by currently applied cost evaluation. Our results show that the volatility of the capital will increase if the fair value measurement is implemented, so we suggest that expansion of the capital, development of experts are needed to manage the financial soundness of insurance companies.