The financial authorities are pushing livelihood measures to respond to high oil prices, including cutting auto insurance premiums and expanding fuel discounts.
On the 29th, according to the financial industry, the Financial Services Commission recently gathered executives and officials from non-life insurers to discuss support measures for auto insurance to respond to high oil prices. In particular, discounting and refunding auto insurance premiums linked to the odd-even license plate driving scheme were reportedly discussed.
The Financial Services Commission (FSC) was said to have expressed the view that it is necessary to review measures to lower premiums or refund a portion of them, considering that if driving decreases under the odd-even license plate scheme, accident rates could also fall.
However, the insurance industry appears reluctant. Last year, insurers posted a deficit of about 708 billion won in auto insurance, and major non-life insurers raised auto insurance premiums by the low-to-mid 1% range this year. It has been only a short time since premiums were raised, and they are again facing pressure to cut them.
The Financial Services Commission (FSC) is also discussing support measures to ease fuel costs for vehicle users. To that end, it asked card companies through the Credit Finance Association last week to propose support to alleviate fuel expenses.
In addition to the existing per-liter (ℓ) discount benefits, a method of offering extra benefits when spending above a certain amount is reportedly being discussed. Currently, fuel discount cards in the card industry provide discounts of 40 to 150 won per ℓ, and the request is to further expand the discount range. Card companies are expected to decide autonomously on the actual application method and level of support, considering each company's fuel card product structure and profitability.