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(Seoul=Yonhap Infomax) Soo Yong Lee – The auto insurance loss ratio at South Korea’s leading non-life insurers continued its upward trajectory last month.
According to the non-life insurance industry on the 24th, the average auto insurance loss ratio for October at the five major non-life insurers—Meritz Fire & Marine Insurance Co., Samsung Fire & Marine Insurance Co., Hyundai Marine & Fire Insurance Co., KB Insurance Co., and DB Insurance Co.—stood at 87.6%.
This marks a 2.2 percentage point increase from 85.4% in the same period last year.
On a cumulative basis for October, the loss ratio reached 85.5%, up 4.2 percentage points from 81.3% a year earlier.
Within the insurance sector, a loss ratio of around 80% is generally considered the break-even point.
Auto insurance premiums have been declining for several years, while cost pressures persist, leading to a heavier loss ratio burden for insurers.
Reflecting these pressures, Samsung Fire & Marine Insurance Co. stated during its third-quarter conference call that it is considering raising auto insurance premiums next year.
An industry official commented, “Structural deterioration continues due to ongoing auto insurance premium cuts and rising repair costs.”
sylee3@yna.co.kr
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