Auto Insurance Loss Ratio Remains Unchanged Despite COVID-19

[Image source=Yonhap News]

[Asia Economy Reporter Oh Hyung-gil] Last month, the loss ratio for automobile insurance did not decrease despite the spread of the novel coronavirus infection (COVID-19).

According to the insurance industry on the 8th, the automobile insurance loss ratios of major non-life insurance companies reached the 80% range in February.

Samsung Fire & Marine Insurance's automobile insurance loss ratio was 87.2%, Hyundai Marine & Fire Insurance 87%, DB Insurance 87.0%, and KB Insurance 88%, respectively.

Compared to December last year, when the automobile insurance loss ratios of major non-life insurers exceeded 100% by a wide margin, this is a decrease of more than 10 percentage points.

However, compared to the same month last year, the automobile insurance loss ratio remains high. Automobile insurance experiences large fluctuations due to seasonal factors.

In February, compared to the same month last year, large companies such as Samsung Fire & Marine Insurance (1.0 percentage point), Hyundai Marine & Fire Insurance (1.9 percentage points), DB Insurance (2.6 percentage points), and KB Insurance (2.1 percentage points) all increased by 1 to 2 percentage points.

Except for some small and medium-sized companies such as The-K Non-Life Insurance (-7.9 percentage points) and MG Non-Life Insurance (-2.7 percentage points), the loss ratios also rose compared to February last year.

The industry analyzes that the reduction in vehicle movement due to decreased outdoor activities caused by COVID-19 had some impact.

It is estimated that traffic accidents themselves increased compared to January last year because people avoided using public transportation for commuting during weekdays due to infection concerns.

An official from a non-life insurance company said, "Weekend vehicle traffic decreased, but on weekdays, since people did not use public transportation, vehicle traffic increased somewhat," adding, "From the end of February, weekday traffic also decreased."

This content was produced with the assistance of AI translation services.