As of Oct. this year, the auto insurance loss ratio at major non-life insurers topped 87%, edging up from a year earlier.
According to the non-life insurance industry on the 24th, last month the auto insurance loss ratio at the four major companies—Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, DB Insurance, and KB Insurance—came to 87.4% (simple average of the four), up 2.2 percentage points from the same month a year earlier. The cumulative loss ratio from Jan. to Aug. this year was 85.7%, up 4.2 percentage points from a year earlier.
With premiums cut for four straight years and the loss per claim rising, the loss ratio is deteriorating. The increases are due to higher repair fees and rising costs for parts, repairs, and the minimum wage.
The insurance industry views a loss ratio of around 80% as the breakeven point for auto insurance. An industry official said the loss ratio will continue to climb due to more fall travelers in Nov.–Dec. and winter seasonal factors.