Automobile Insurance Loss Ratio Surges to 84%

The automobile insurance ‍loss ratio of ⁤major non-life insurance companies has exceeded 84%, influenced by the increase in ‍vehicle movement during the holiday season and the electric car fire in Incheon.

According to the non-life insurance industry, ⁤the average automobile insurance⁢ loss ratio of the four major⁢ non-life insurance companies (Samsung Fire & Marine​ Insurance, Hyundai Marine & Fire Insurance, DB Insurance, and KB Insurance) last month ‍was 84.2% (simple average of the four companies), a sharp increase‌ of 3.6 percentage points (p) compared to the same period last​ year (80.6%).

The‌ loss ratios of the four ‌companies were as follows: Samsung Fire & Marine⁣ Insurance (84.5%), Hyundai Marine & Fire Insurance (83.5%), KB Insurance (84.8%), and DB Insurance (84.0%).

The cumulative loss ratio of the four companies from January⁢ to August this ‍year also reached 80.4%. This represents a 2.6% increase from last year (77.8%) ​and exceeded 80%. The loss ratio corresponding ‌to the break-even point ‍of automobile insurance is usually considered to be around​ 80% when considering operating expenses, etc. Exceeding this means entering the ​deficit zone.

Small and medium-sized non-life insurance companies also⁤ experienced similar loss ratios. During the same period, Lotte Non-Life Insurance’s loss‌ ratio‍ was 84.0%,​ Hanwha⁣ Non-Life Insurance’s was 82.9%, and Meritz Fire & Marine Insurance’s was 82.6%.

An insurance industry official attributed ‍the increase in loss ratios to the rise in accident reports during the summer vacation ‌period ⁣and the electric vehicle fire that occurred in Incheon. The⁤ official predicted that⁢ the ⁢loss ratio ⁤would continue ⁣to increase due to the expected rise⁢ in⁣ vehicle movements​ during the fall vacation season, as well as the potential damage caused by autumn ​typhoons and winter ‍heavy snow and freezing.