The Financial Supervisory Service said on the 15th that the auto institutional sector insurance balance posted a deficit of 184.8 billion won in the first half of this year. During the same period, the auto insurance loss ratio was 84.9%, up 1.6 percentage points from a year earlier (83.3%).
The combined ratio, which is the sum of the loss ratio and expense ratio, was 101.9%, exceeding the 100% break-even point and swinging to a loss for the first time in six years. In general, auto insurance considers a combined ratio of 100% as the break-even point.
First-half auto insurance revenue (direct premiums) came to 10.6384 trillion won, up 4.2% from a year earlier (10.2115 trillion won). The auto insurance market expanded, and premiums rose 1.3% at the start of the year. Including 422.8 billion won in investment gains and losses, total first-half auto institutional sector profit and loss was 238.0 billion won, down 144.0 billion won (37.7%) from a year earlier.
The expense ratio also rose. The auto insurance expense ratio in the first half was 17%, up 0.6 percentage points from a year earlier (16.4%). The expense ratio is the ratio of net acquisition and operating expenses to earned premiums.
By market share, the four major insurers—Samsung Fire & Marine Insurance, DB Insurance, Hyundai Marine & Fire Insurance, and KB Insurance—had a combined share of 84.8%, down 0.2 percentage points from a year earlier but still maintaining an oligopoly.
Mid- to small-sized insurers such as Hanwha General Insurance, Meritz Fire & Marine Insurance, Heungkuk Fire&Marine Insurance, Lotte Non-Life Insurance, and Able General Insurance held an 11% share, up 1.6 percentage points. The impact of the merger between Hanwha General Insurance and Carrot General Insurance last October was reflected. In contrast, contactless specialists such as AXA General Insurance, Hana Insurance, and Carrot General Insurance had a 4.2% share, down 1.4 percentage points.