Due to the 'Unprecedented Heavy Snowfall,' November Auto Insurance Loss Ratio Soars to 92.4%

Due to the impact of heavy snowfall last month, the first in 117 years, the loss ratio of automobile insurance for major non-life insurance companies surged to over 90%.

According to the non-life insurance industry on the 23rd, the automobile insurance loss ratio of four major non-life insurers?Samsung Fire & Marine Insurance, DB Insurance, Hyundai Marine & Fire Insurance, and KB Insurance?in November averaged 92.4% (simple average of the four companies), up 6.1 percentage points from 81.5% in the same period last year.

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From January this year, the monthly loss ratio had maintained a level 1 to 3 percentage points higher than the same period last year. Then, in September, due to heatwaves and heavy rain, it rose by 4.6 percentage points, and in October, it maintained an increase of about 4 percentage points. The increase in November was the highest this year.

By company, Samsung Fire & Marine Insurance (92.8%), Hyundai Marine & Fire Insurance (97.8%), and KB Insurance (91.6%) all surpassed a 90% loss ratio, while DB Insurance recorded 87.5%. Generally, an 80% loss ratio is considered the breakeven point for automobile insurance, and for major companies, it is regarded as 82%.

The cumulative loss ratio of the four companies from January to November this year was 82.5%, up 3.2 percentage points from 79.3% in the same period last year.

An industry official said, "The unusually heavy snowfall last month increased the number of accidents, worsening the loss ratio," adding, "At the end of the year, seasonal factors such as heavy snow and ice, combined with the Christmas holiday, will further increase the loss ratio."