Auto Insurance Loss Ratio Hits 82.6% in First Half... Up 3.1%p Year-on-Year

July Loss Ratio Outlook Remains Grim Due to "Heavy Rainfall"

The auto insurance loss ratio worsened in the first half of this year.

According to the non-life insurance industry on the 21st, the auto insurance loss ratio for the four major non-life insurers?Samsung Fire & Marine Insurance, DB Insurance, Hyundai Marine & Fire Insurance, and KB Insurance?was 82.6% from January to June this year, up 3.1 percentage points compared to the same period last year. The loss ratio for last month was 81.7%, an increase of 2.5 percentage points from the same month last year.

In the industry, it is considered that when the auto insurance loss ratio of major companies exceeds 82%, it has fallen below the break-even point. In the first half of this year, except for March, the auto insurance loss ratio of all four major non-life insurers exceeded 80%. The main reasons are the decrease in auto insurance premiums and the increase in repair costs.

Due to the recent impact of heavy rainfall and other factors, the auto insurance loss ratio is expected to deteriorate further. From the 16th until 9 a.m. on the day of reporting, 3,131 vehicles were reported as damaged due to flooding and other causes, with total damages amounting to 29.613 billion won.

Amid heavy rainfall causing significant damage in the Gapyeong area, on the 21st, a container swept away by the rapid current is blocking the entrance road to Daebo 1-ri village near Jojong Stream in Sang-myeon, Gapyeong County, Gyeonggi Province.