Samsung Fire & Marine Insurance is expected to expand its car care services to the corporate vehicle market, which encompasses approximately 4 million vehicles. This strategy aims to reduce customer attrition and secure additional revenue amid increasing profitability pressures in the auto insurance sector.
According to financial industry sources on October 21, Samsung Fire & Marine is considering extending its car care services from individual customers to corporate clients.
Car care services offer a range of vehicle management and lifestyle benefits, including vehicle inspections, repairs, fuel, parking, and car washes, separate from auto insurance. While some insurers limit access to their car care services to their own auto insurance policyholders, Samsung Fire & Marine is making these services available to anyone, regardless of their insurance status, thereby broadening customer engagement.
The corporate vehicle market is seen as a new area for Samsung Fire & Marine to acquire customers. As companies diversify their vehicle usage through leasing and rental options, and with tax incentives for eco-friendly vehicles, corporate vehicle registrations are becoming more active.
According to Kaizu Data Research Institute, the cumulative number of corporate vehicles reached 4,084,739 by September this year. The number of new registrations for corporate passenger cars increased from 421,611 in 2024 to 470,937 in 2025.
The increasing profitability pressures in the auto insurance sector are also driving Samsung Fire & Marine to expand vehicle-related services. Auto insurance is a high-loss area, with the cumulative loss ratio for the five largest non-life insurers in South Korea (Samsung Fire & Marine, DB Insurance, Meritz Fire & Marine, Hyundai Marine & Fire Insurance, and KB Insurance) exceeding 80%. Under the financial authorities' policy to restrain premium increases, insurers are facing greater profit and loss burdens.
However, scaling back auto insurance operations is not an easy option. There are approximately 25 million auto insurance policyholders in South Korea, representing a customer base built over decades. Therefore, diversifying vehicle-related services to secure additional revenue and reduce existing customer attrition is becoming increasingly important.
Since auto insurance is renewed annually, consumers often compare premiums and coverage conditions, leading them to switch to other insurers. By providing regular vehicle management services, Samsung Fire & Marine believes it can increase customer touchpoints and reduce attrition at renewal time. The company is also seen as aiming to secure new customers by expanding its car care services to corporate clients and seeking synergy with its existing auto insurance business.
Other insurers are also launching differentiated services and products. KB Insurance operates 'KB Car Tech,' which allows users to access vehicle information, maintenance history, and partnership discounts all in one mobile app. Hyundai Marine & Fire Insurance has introduced a unique policy that offers additional discounts based on monthly safe driving scores.
A financial industry source stated, "New initiatives are necessary to maintain the auto insurance market, which has become a burden. With cheaper auto insurance products emerging every year, vehicle-related services are a crucial means to prevent customer attrition."
* This article has been translated by AI.
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