Still 'Good Performance' in Car Insurance Loss Ratio... 0.2% Increase YoY as of April

Average 76.9% for the 4 Major Insurance Companies

Until April of this year, major non-life insurance companies showed a stable level of loss ratio in automobile insurance. Despite the base effect of COVID-19, the ratio still remains around the 70% level.

According to the industry on the 22nd, the cumulative loss ratio from January to April this year for the four major non-life insurers?Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, DB Insurance, and KB Insurance?which account for over 85% of the automobile insurance market share, was recorded at around 76.8% to 77.2%. The simple average was 76.9%, up 0.2 percentage points compared to the same period last year. By company, KB Insurance and DB Insurance each recorded 76.8%, Hyundai Marine & Fire Insurance 77.0%, and Samsung Fire & Marine Insurance 77.2%.

For April alone, the average loss ratio was 76.2%, which actually fell by 1.6 percentage points compared to the same month last year. Generally, the industry considers an appropriate loss ratio range of 78% to 82% as the level at which insurers do not incur losses, indicating that a stable loss ratio is being maintained.

Although it had been a perennial deficit product, the loss ratio stabilized due to institutional improvements implemented at the beginning of the year to prevent excessive medical treatment. However, some view that factors such as an increase in the number of vehicle repairs during the summer vacation season and rising automobile repair labor costs remain, so future trends need to be monitored.