As of August this year, the auto insurance loss ratio of major non-life insurers was analyzed at about 87%.
According to the non-life insurance industry on the 22nd, the auto insurance loss ratio of the four major companies — Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, DB Insurance, and KB Insurance — last month came to 86.7% (simple average of the four companies). That was up 2.6 percentage points from the same month a year earlier. The loss ratio deteriorated sharply as vehicle use increased during the vacation season and a heat wave, and accidents rose due to torrential rain. The effect of four consecutive years of premium cuts was also reflected.
The cumulative loss ratio from January to August this year was 84.4%, up 4 percentage points from the same period last year. The insurance industry views 80% as the loss ratio breakeven level for auto insurance, and it has surpassed that and continues to climb.
An industry official said, "As a combined result of four consecutive years of premium cuts and a rise in loss per accident, the loss ratio is increasing," and noted, "With travel demand rising in September, an increase in the number of accidents and casualties per accident is expected to push up claim costs, and cost drivers such as repair fees, parts costs, and repair expenses are likely to rise, so the loss ratio will continue to worsen."