Korea’s top five insurers see 83% auto loss ratio this year

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The combined loss ratio for auto insurance at South Korea’s top five non-life insurers reached a cumulative 83 percent in the first four months of this year, surpassing the industry’s 80 percent break-even threshold.
According to the non-life insurance industry on Wednesday, the average auto insurance loss ratio for Samsung Fire & Marine Insurance Co., Hyundai Marine & Fire Insurance Co., DB Insurance Co., KB Insurance Co., and Meritz Fire & Marine Insurance Co. was 82.5 percent, up 3.4 percentage points from a year earlier.
Hyundai Marine & Fire posted the highest ratio at 83.6 percent, followed by Samsung Fire & Marine and KB Insurance at 83.3 percent each, DB Insurance at 82.8 percent, and Meritz at 82.7 percent. The industry typically considers 80 percent as the break-even point, with any figure above indicating underwriting losses.
In April alone, the average loss ratio among the five major insurers rose to 85.1 percent. That compares with an annual average of 83.06 percent last year—roughly 2 percentage points lower.
A non-life insurance company official pointed to four consecutive years of premium cuts as a key factor behind the rising loss ratio.
The General Insurance Association of Korea said that increased traffic volume in April contributed to more accidents, further pushing up the ratio, and noted that the break-even point should now be viewed closer to 83 percent due to lower operating costs.