The auto insurance loss ratio for the first half of 2026 has increased compared to last year. Concerns are growing that the loss ratio will continue to worsen in the second half due to rising claims costs and an expected increase in accidents during the rainy season.
According to the non-life insurance industry on July 22, the cumulative loss ratio for the four major auto insurers—Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, DB Insurance, and KB Insurance—was recorded at 84.5% for the first half of the year, up 1.9 percentage points from the same period last year.
The loss ratio for June also rose by 1.9 percentage points year-on-year to 83.6%.
The limited increase in auto insurance premiums earlier this year, coupled with rising claims costs, is seen as a contributing factor to the worsening loss ratio.
Industry experts predict that the burden of the loss ratio will persist in the second half. The likelihood of increased vehicle flooding, falling object accidents, and traffic accidents on wet roads during the summer rainy season is significant. Additionally, rising vehicle maintenance costs and wages for temporary workers continue to drive up claims costs. As a result, annual losses in auto insurance are anticipated.
An industry official stated, "Given the various factors driving up the costs of auto insurance, the loss ratio is expected to continue to deteriorate. Improvements to systems such as the '8-week rule' to prevent claims leakage need to be implemented promptly."
* This article has been translated by AI.
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