Slight Improvement in Auto Insurance Loss Ratio from January to February... Average at 78.3%

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In January and February of this year, the loss ratio of automobile insurance for major non-life insurance companies showed slight improvement compared to the previous year.

According to the non-life insurance industry on the 21st, the average automobile insurance loss ratio of the five major companies?Samsung Fire & Marine Insurance, DB Insurance, Hyundai Marine & Fire Insurance, Meritz Fire & Marine Insurance, and KB Insurance?was 78.3% (simple average of the five companies) in January and February this year, down 0.4 percentage points from 78.7% during the same period last year. These five major companies hold about a 90% market share in automobile insurance.

Looking at the loss ratios by company for January and February, Hyundai Marine & Fire Insurance recorded 78.7%, and DB Insurance 78.3%, each decreasing by 3.8 percentage points and 2.4 percentage points respectively compared to the previous year. Meritz Fire & Marine Insurance (77.3%) and Samsung Fire & Marine Insurance (79.3%) increased by 2.7 percentage points and 1.7 percentage points respectively, while KB Insurance (78.0%) remained the same as the previous year.

The non-life insurance industry considers a loss ratio of around 80% as the breakeven point. The industry is currently concerned about a potential deterioration in loss ratios due to factors such as rising costs from consumer price inflation, increased maintenance fees, and reductions in automobile insurance premiums this year.