Up 9.7 Percentage Points Year-on-Year
Concerns Over Further Deterioration This Year
Last month, due to the cold wave and heavy snowfall, the loss ratio of automobile insurance surged by nearly 10 percentage points compared to the previous year.
According to the non-life insurance industry on the 24th, the loss ratio of automobile insurance for the five major companies?Samsung Fire & Marine Insurance, DB Insurance, Hyundai Marine & Fire Insurance, KB Insurance, and Meritz Fire & Marine Insurance?was 88.7% last month. This is an increase of 9.7 percentage points compared to February of last year (79.0%).
Compared to the previous month (81.8%), it also rose by 6.9 percentage points. This figure exceeds the break-even loss ratio for automobile insurance, which is about 80%.
An industry official said, "The loss ratio increased due to a surge in accidents caused by the cold wave and heavy snowfall last month," adding, "Automobile insurance operating profits recorded a deficit until last month."
He continued, "This year, insurance companies have lowered automobile insurance premiums for four consecutive years, and with an increase in spring travelers and a 2.7% rise in hourly repair labor costs, traffic accidents have increased. If these factors are reflected, the loss ratio is expected to worsen further this year," he added.
The major non-life insurance companies have confirmed automobile insurance premium reduction rates of up to 1%.
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