According to the nonlife insurance industry on Tuesday, the simple average auto insurance loss ratio for four insurers — Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, DB Insurance and KB Insurance — came to 85.9% in the first quarter, up 3.4 percentage points from 82.5% a year earlier.
The March loss ratio was 81.5%, up 4.0 percentage points from the same month a year earlier. The ratio typically dips slightly in March, but this year it stayed above the break-even level of 80%.
An industry official said premiums rose slightly early this year for the first time in five years, but the impact of four straight years of premium cuts was larger. The official added that the outlook is “somewhat negative,” citing expected increases in traffic and accidents as temperatures rise and more people travel after April, along with higher parts and repair costs driven by inflation.
* This article has been translated by AI.
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