Last Year’s Auto Insurance Loss Ratio Hits 87%... Highest in Six Years

Last Month's Loss Ratio Surpasses 96%
Major Insurers to Raise Auto Insurance Premiums by 1.3-1.4% Starting in February

Last year, the automobile insurance loss ratio exceeded 87%, marking the highest level in six years.

According to the non-life insurance industry on January 21, the automobile insurance loss ratio of the four major non-life insurers-Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, DB Insurance, and KB Insurance-stood at 87% last year. Looking at the annual loss ratios: 85% in 2020, 81% in 2021, 80.4% in 2022, 79.8% in 2023, and 83.3% in 2024. The industry considers a loss ratio of 82% for automobile insurance at major non-life insurers to be the break-even point.

In December alone, the automobile insurance loss ratio for the four major non-life insurers reached 96.1%. This figure is up by 3.3 percentage points compared to the same month of the previous year. It has been six years since the monthly loss ratio for these insurers surpassed 96%. Seasonal factors at the end of the year, four consecutive years of premium reductions, and rising parts costs all contributed to this increase.

With the sharp rise in the automobile insurance loss ratio, the major non-life insurers have announced plans to raise automobile insurance premiums this year. Starting in February, Samsung Fire & Marine Insurance and Hyundai Marine & Fire Insurance will increase premiums by 1.4%, while KB Insurance and DB Insurance will raise them by 1.3%.