August Auto Insurance Loss Ratio at 86.7%...Up 2.6 Percentage Points Year-on-Year

Cumulative Loss Ratio Reaches 84.4% from January to August
Up 4 Percentage Points Year-on-Year

Last month, the loss ratio for automobile insurance at major non-life insurance companies increased.

According to the non-life insurance industry on September 22, the automobile insurance loss ratio for the four major non-life insurers-Samsung Fire & Marine Insurance, DB Insurance, Hyundai Marine & Fire Insurance, and KB Insurance-was recorded at 86.7% last month. This figure is up by 2.6 percentage points compared to the same month last year. These four companies account for 85.3% of the automobile insurance market share.

The cumulative loss ratio for automobile insurance at the four major non-life insurers from January to August this year was 84.4%, marking a 4 percentage point increase compared to the same period last year.

In the first half of this year, the domestic automobile insurance loss ratio stood at 83.3%, and when considering the expense ratio (16.4%), the combined ratio soared to 99.7%. If this figure exceeds 100%, it means the companies move out of the break-even point. With the sharp rise in the automobile insurance loss ratio this year, there is a possibility that major non-life insurers may post losses in their automobile insurance divisions.

An industry official explained, "Last month, vehicle usage increased due to the vacation season and the heat wave, and there were also a number of accidents caused by heavy rainfall."