Last month, the loss ratio for auto insurance significantly decreased compared to the same month last year, resulting in a slight improvement in the cumulative loss ratio for the year. However, the cumulative loss ratio still exceeds the 80% threshold, which is considered the breakeven point, posing a burden on insurers' profitability.
According to the property and casualty insurance industry on October 23, the cumulative loss ratio for auto insurance from January to September this year for four major insurers—Samsung Fire & Marine, Hyundai Marine & Fire, DB Insurance, and KB Insurance—averaged 84.7%. This figure represents a 0.8 percentage point decline compared to the same period last year.
The loss ratio for September was 85%, a decrease of 9.2 percentage points from the same month last year. This decline was largely attributed to a significant reduction in rainfall compared to last September, as well as decreased highway traffic during the Chuseok holiday. Last month's rainfall was only about 11% of that recorded in the same month last year.
Despite the decrease, the loss ratio remains above the critical 80% mark, making it difficult to be optimistic about profitability improvements.
An industry official stated, “With the peak autumn foliage season in October, there is a concern that the number of accidents and the amount of personal injury claims per accident may increase due to rising travel demand. Additionally, repair costs and wages for temporary workers continue to rise, which could worsen the loss ratio in the future.”
* This article has been translated by AI.
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