MG Sonbo, Auto Insurance Premiums Increased by 2%... Industry's Highest Loss Ratio

Will Auto Insurance Premiums Continue to Rise?
Major Insurers' Loss Ratios Stabilize
'Repair Fee Negotiations' Remain a Variable

[Asia Economy Reporter Oh Hyung-gil] MG Insurance will raise automobile insurance premiums by an average of 2%.

According to the insurance industry on the 11th, MG Insurance announced that it will increase personal automobile insurance premiums by an average of 2% starting from the 16th.

MG Insurance is known to have implemented the increase due to a rise in the automobile insurance loss ratio. However, only personal automobile insurance premiums will be raised, and premiums for business-use and commercial-use automobile insurance will not be increased.

Last year, MG Insurance's automobile insurance loss ratio was 107.7%, the highest among the 11 non-life insurance companies selling automobile insurance.

There is interest in whether automobile insurance premium increases will continue starting with MG Insurance. However, major non-life insurers have so far shown stable loss ratios.

In February, the automobile insurance loss ratios of 11 domestic non-life insurers, including Samsung Fire & Marine Insurance, DB Insurance, Hyundai Marine & Fire Insurance, and KB Insurance, were recorded between a minimum of 77.2% and a maximum of 96%.

Samsung Fire's loss ratio last month was 81.0%, down 6.1 percentage points compared to February last year (87.2%). Hyundai Marine & Fire Insurance's loss ratio was 81.5%, 5.9 percentage points lower than the same period last year (87.4%). KB Insurance and DB Insurance improved by 9.4 percentage points and 4.1 percentage points respectively, recording 79.6% and 82.0% compared to last year.

The variable of repair cost increases also remains. The Automobile Insurance Repair Council, which includes the Ministry of Land, Infrastructure and Transport, the Financial Services Commission, the insurance industry, and the repair industry, is scheduled to hold its first meeting on the 25th. The repair industry is requesting an 8.2% increase considering the minimum wage hike and increased operating expenses.

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