In December last year, the auto insurance loss ratio of major non-life insurers topped 96%, marking a record high for the past six years.
According to the non-life insurance industry on the 21st, last month the auto insurance loss ratio of the four major companies—Samsung Fire & Marine Insurance, DB Insurance, Hyundai Marine & Fire Insurance, and KB Insurance—was analyzed at 96.1% (simple average of the four companies). That is up 3.3 percentage points from a year earlier.
It is analyzed as a result of year-end seasonal factors and four consecutive years of premium cuts. Continued increases in property damage costs such as car parts are also cited as factors. Among the four major companies, a monthly loss ratio in the 96% range is the first since 2020, when the industry began compiling comparable figures.
The annual loss ratio last year was also 87.0%, up 3.7 percentage points from the previous year. On an annual basis, it was the highest in six years.
The insurance industry sees the loss ratio corresponding to the auto insurance break-even point at around 80%. As the loss ratio rises, the non-life sector plans to raise auto insurance premiums for the first time in five years. The four major companies plan to apply a 1.3% to 1.4% increase to auto insurance premiums starting in February.