As of May this year, the loss ratio for auto insurance among major property and casualty insurers has slightly increased compared to last year. Despite the impact of premium hikes in February, the cumulative effect of premium reductions has led to a decline in profitability.
According to the property and casualty insurance industry on June 23, the average loss ratio for auto insurance among four major insurers—Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, DB Insurance, and KB Insurance—was 84.7% from January to May. This marks a 1.9 percentage point increase from the same period last year, which recorded a loss ratio of 82.8%.
However, the loss ratio for May alone was 80.8%, reflecting a decrease of 0.3 percentage points compared to May of the previous year. Among the companies, DB Insurance reported the highest loss ratio at 82.3%, followed by Samsung Fire & Marine Insurance at 82.2%, KB Insurance at 79.8%, and Hyundai Marine & Fire Insurance at 78.9%.
The loss ratio in auto insurance indicates the percentage of claims paid out relative to premiums collected. Typically, considering operational costs, the breakeven point is estimated to be around 80%. The auto insurance loss ratio has steadily increased from 79.9% in 2023 to 83.3% in 2024, and 87.1% in 2025.
An industry insider noted, "Despite the premium increase after five years, the cumulative loss ratio appears to have risen due to four consecutive years of premium reductions."
* This article has been translated by AI.
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