Spring Drowsy Driving Surges... Accident Insurance Claims Increase 2.5 Times

Average Insurance Payout of 6.13 Million KRW per Case
'Momentary' Drowsy Driving Raises Risk of Major Accidents

Traffic Volume Surges After COVID Decline
Non-Life Insurers Monitor Loss Ratios Closely

[Asia Economy Reporter Oh Hyung-gil] As the response to the novel coronavirus infection (COVID-19) shifts to a daily quarantine system, non-life insurance companies are becoming tense. These companies are closely monitoring the possibility that the loss ratio of automobile insurance, which had entered a stable phase, may rise again as it coincides with the period when drowsy driving accidents surge throughout the year.

According to Hyundai Marine & Fire Insurance on the 20th, insurance payouts for accidents caused by drowsy driving, which frequently occur in spring, were found to be more than twice as high on average compared to general car accidents.

Analyzing about 883,400 automobile accidents reported in 2018 by type, Hyundai Marine & Fire Insurance found that drowsy driving accidents accounted for only 5,476 cases, or 0.6%. However, the insurance payouts for these accidents amounted to 33.5 billion KRW, representing 1.5% of the total insurance payouts.

The average insurance payout per drowsy driving accident was 6.13 million KRW, which is more than 2.5 times higher than the average payout of 2.4 million KRW per accident overall. The high insurance payouts for drowsy driving accidents indicate that the scale of damage was significantly larger.

Looking at the number of drowsy driving accidents by season, spring (March to May) recorded the highest with 1,537 cases. Summer (June to August) had 1,493 cases, autumn (September to November) 1,444 cases, and winter (December to February) only 1,002 cases. The insurance payout per accident was also relatively higher in spring at 6.42 million KRW, compared to summer (6.34 million KRW), autumn (5.99 million KRW), and winter (5.58 million KRW).

The non-life insurance industry cites spring drowsy driving accidents as a major cause of the increase in automobile insurance loss ratios.

Among spring months, drowsy driving accidents occurring in May are more likely to lead to major accidents and have a higher fatality rate, thus significantly impacting the loss ratio. According to the National Police Agency, over the past five years from 2015 to last year, there were 437 deaths caused by drowsy driving accidents, with 52 deaths in May alone, accounting for 11.9% of the total fatalities, the highest number.

In particular, the recent increase in highway traffic volume, which had decreased until March due to COVID-19, is also a burden as it raises the overall likelihood of traffic accidents.

This year, the average daily highway traffic volume reached 4.35 million vehicles in January but dropped to 3.72 million in the first week of March due to the spread of COVID-19, then recovered to 4.05 million by the last week of March.

The non-life insurance industry is concerned that the automobile insurance loss ratio will increase starting in May. The loss ratio had approached the 100% range at the end of last year but dropped to the 80% range in the first quarter.

A representative from a non-life insurance company said, "As temperatures rise, people become drowsy, leading to more accidents caused by drowsy driving, which often result in road departures or multi-vehicle collisions. The more drivers actively prevent drowsy driving, the better the automobile insurance loss ratio can be managed."

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