Increase in Outings with 'With Corona'... 90,000 Car Accidents in the First Week of November (Comprehensive)

8% Increase from Previous Month in the First Week of This Month
Auto Insurance Loss Ratio Expected to Rise as Well

On the first day of the phased return to normal life (With Corona) on the 1st, citizens visited Jeongdong-gil in Jung-gu, Seoul, where the autumn leaves were vividly colored, to enjoy the autumn atmosphere. Photo by Moon Honam munonam@

[Asia Economy Reporter Oh Hyung-gil] With the phased return to normal life (With Corona), car accidents have increased again. Car accidents, which had decreased due to social distancing measures implemented during the COVID-19 pandemic, have rebounded since mid-last month as traffic volume increased. The loss ratio of auto insurance, which had been stable, is also expected to rise as the year-end approaches.

According to the non-life insurance industry on the 16th, the number of car accident reports received by four major non-life insurers?Samsung Fire & Marine Insurance, DB Insurance, Hyundai Marine & Fire Insurance, and KB Insurance?reached 95,169 in the third week of last month when social distancing was eased.

This is an increase of nearly 10,000 compared to 87,282 and 87,233 cases reported in the first and second weeks of October, respectively.

The government implemented social distancing easing measures on October 18. Private gatherings were allowed up to 8 people including those fully vaccinated, and restaurants and cafes were permitted to operate until midnight. In the month when the With Corona measures were implemented, the number of car accident reports received from the 1st to the 7th reached 94,382, an 8.1% increase compared to the same period last month.

The insurance industry analyzed that the increase in car accidents was due to the easing of social distancing measures combined with seasonal factors such as increased outings during the autumn foliage season.

An insurance industry official said, "Car accidents typically increase in winter, but this year signs of an increase have appeared since October," adding, "The rise in accidents is understood to be due to increased travel and outings that were not possible during social distancing."

As car accident reports increase, the previously stable auto insurance loss ratio is expected to worsen again. The insurance industry is closely monitoring the loss ratio trend ahead of the year-end, when car accidents typically surge.

As of the third quarter of this year, the cumulative auto insurance loss ratios of major insurers were ▲Samsung Fire & Marine Insurance 79.1%, ▲DB Insurance 78.1%, ▲Hyundai Marine & Fire Insurance 79.5%, and ▲Meritz Fire & Marine Insurance 76.7%, about 10 percentage points lower than the same period last year. The loss ratio indicates the proportion of insurance claims paid to policyholders out of the premiums collected by the insurer. The industry has maintained an appropriate auto insurance loss ratio range of 77-78%, contributing to reducing underwriting losses.

However, concerns are rising that the loss ratio will worsen due to scheduled increases in repair fees starting December. In September, the insurance and auto repair industries held the Auto Insurance Repair Council and agreed on a 4.5% increase in hourly labor rates for auto repairs.

An insurance industry official said, "Since many accidents occur in December, there is a possibility that the year-end loss ratio will rise significantly," but added, "It is still premature to discuss whether auto insurance premiums will increase due to the loss ratio."

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