Last month, the loss ratio for automobile insurance at major property and casualty insurance companies soared above 90%, increasing the likelihood of higher automobile insurance premiums.
According to the insurance industry on the 23rd, last month the average loss ratio for automobile insurance at four major property and casualty insurers, including Samsung Fire & Marine Insurance, DB Insurance, Hyundai Marine & Fire Insurance, and KB Insurance, was 92.4%, up 6.1 percentage points from the same month last year (81.5%). The cumulative loss ratio from January to last month was 82.5%, an increase of 3.2 percentage points compared to last year (79.3%).
By insurer, the loss ratios were over 90% for Samsung Fire & Marine Insurance (92.8%), Hyundai Marine & Fire Insurance (97.8%), and KB Insurance (91.6%). DB Insurance recorded a loss ratio of 87.5%.
Typically, the break-even point for automobile insurance is considered to be a loss ratio of 78% to 82%. If it exceeds 82%, it results in a deficit and is a factor for premium hikes. With the cumulative loss ratio exceeding 82% this year, a deficit is inevitable if the loss ratio does not decline in December.
The sharp increase in the loss ratio is attributed to a rise in traffic accidents due to heavy snowfall and other factors. Each winter, seasonal factors such as heavy snow and icy road accidents have led to an increase in the loss ratio.