August's auto insurance loss ratio showed slight improvement compared to last year, but the cumulative loss ratio remains above last year's level.
According to the non-life insurance industry on September 22, the average loss ratio for the four major companies (Samsung Fire & Marine, Hyundai Marine & Fire, DB Insurance, and KB Insurance) in August was 84.0%, a decrease of 2.7 percentage points from 86.7% in the same month last year.
However, the cumulative loss ratio for January to August this year is 84.7%, which is an increase of 0.3 percentage points from 84.4% during the same period last year. Among the companies, Samsung Fire & Marine had the lowest loss ratio at 84.2%, followed by Hyundai Marine & Fire at 84.6%, KB Insurance at 84.9%, and DB Insurance at 85.0%.
The higher cumulative loss ratio compared to last year is attributed to the continuous reductions in auto insurance premiums over the past four years and the limited increase in premiums this year.
An industry official stated, "There are concerns about an increase in accidents due to traffic congestion during the Chuseok holiday period, and the outlook for future loss ratios is somewhat negative due to rising parts and repair costs driven by inflation."
* This article has been translated by AI.
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