Big 4 Non-Life Insurers' February Auto Insurance Loss Ratio at 79.5%... Worsened Compared to Previous Year

Up 2.4 Percentage Points from February Last Year
Down 1.6 Percentage Points from Previous Month
"March Loss Ratio Expected to Worsen"

Last month, the loss ratio for automobile insurance slightly increased compared to the same period last year.

According to the non-life insurance industry on the 21st, the average loss ratio for automobile insurance last month among four major domestic non-life insurers?Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, KB Insurance, and DB Insurance?was 79.5%, up 2.4 percentage points from 77.1% in the same period last year. The average loss ratio for January to February this year was 80.8%, an increase of 2.3 percentage points compared to 78.5% during the same period last year.

Samsung Fire & Marine Insurance, which holds the largest market share in automobile insurance, recorded a loss ratio of 78.2% last month, up 1.3 percentage points from 76.9% in the same period last year. During the same period, Hyundai Marine & Fire Insurance’s loss ratio rose 2.7 percentage points to 81.8%. KB Insurance’s loss ratio increased from 76.4% to 78.9%, and DB Insurance’s rose from 77.7% to 79%.

The non-life insurance industry considers a loss ratio of around 80% as the breakeven point.

An industry official said, "The slight increase in the loss ratio compared to the same period last year was due to last year’s premium reductions and seasonal factors such as heavy snowfall last month," adding, "In March, the loss ratio is expected to worsen due to increased driving volume caused by the March 1st holiday and the rise in spring travelers."

Non-life insurers expect the loss ratio this year to move away from the breakeven point due to this year’s automobile insurance premium reductions and increases in maintenance fees.