Due to increased vehicle movement during last month's vacation season and the electric vehicle fire in Incheon, the loss ratio of automobile insurance for major non-life insurance companies exceeded 84%.
According to the non-life insurance industry on the 24th, the automobile insurance loss ratio of four major non-life insurers?Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, DB Insurance, and KB Insurance?last month (simple average of the four companies) was 84.2%, up 3.6 percentage points from 80.6% in the same month last year.
By company, Samsung Fire & Marine Insurance (84.5%), Hyundai Marine & Fire Insurance (83.5%), KB Insurance (84.8%), and DB Insurance (84%) all recorded loss ratios exceeding 80%.
The breakeven point for automobile insurance is considered to be a loss ratio of 80%. When the loss ratio exceeds 80%, it is recognized as a loss.
The cumulative loss ratio for the four major non-life insurers from January to August this year was 80.4%, up 2.6 percentage points from 77.8% in the same period last year, exceeding 80%.
An industry official said, "The increase in vacationers in August and the damage from the electric vehicle fire accident in Incheon caused the loss ratio to rise," adding, "If accident damages increase due to autumn holidays, typhoons, winter heavy snow, and freezing, the automobile insurance loss ratio this year may increase further."
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