Last month, the loss ratio for auto insurance surged compared to the previous year due to the cold wave and heavy snowfall.
According to the insurance industry on the 24th, the auto insurance loss ratio of the five major companies, including Samsung Fire & Marine Insurance, DB Insurance, Hyundai Marine & Fire Insurance, KB Insurance, and Meritz Fire & Marine Insurance, was 88.7% in February, a sharp increase of 9.7 percentage points from the same month last year (79.0%).
This is a 6.9 percentage point increase compared to the previous month (81.8%) and far exceeds the break-even loss ratio for auto insurance (approximately 80%).
The significant rise in the loss ratio was due to a sharp increase in accidents last month caused by the cold wave and heavy snowfall, resulting in a deficit in the operating profit of auto insurance. Industry voices express concern that this year, reflecting the continuous reduction in auto insurance premiums for four consecutive years, an increase in traffic accidents due to more spring vacationers, and a 2.7% increase in hourly maintenance labor costs, the loss ratio will worsen further.
Earlier, the major insurance companies confirmed a reduction rate of up to 1% for auto insurance premiums.