* Valued at $10 bln, plans 20 pct public float-sources

* Asia set for a rush of insurance industry offerings (Adds details, background, quote from industry expert)

By Michael Flaherty and Narayanan Somasundaram

HONG KONG, Nov 6 (Reuters) - Korea Life Insurance Co, the country's No. 2 life insurer, may raise around $2 billion through its public offering, sources with direct knowledge of the matter said, in what would be Korea's largest IPO since 2006.

Korea Life joins a rash of planned insurance offerings in Asia, as the industry seeks to expand and as rising stock markets lift earnings for life insurers, which rely on investment returns as a key source of income. [ID:nT334481]

The Asia insurance IPO list includes AIG's (AIG.N: Quote, Profile, Research) AIA, Shanghai-traded China Pacific Insurance (601601.SS: Quote, Profile, Research), which aims to raise $3.5 billion in Hong Kong, Reliance Life in India and Japan's Dai-ichi Mutual Life Insurance.

By some estimates, there is roughly $20 billion of insurance offerings waiting to hit the Asian markets over the next three years.

"The Asian insurance sector has gone from $40 billion in market capitalisation six years ago to $600 billion now," said an investment banker who works closely with the industry. He did not want to be quoted by name due to client sensitivities.

Sources on Friday pegged the value of Korea Life at roughly $10 billion, and the expectation is to float a fifth of the business.