Car Insurance Premiums to Decrease... Samsung Fire & Marine Insurance to Cut Rates by 1.2% in April

[Asia Economy Reporter Changhwan Lee] Samsung Fire & Marine Insurance has decided to reduce car insurance premiums by 1.2% in April. Other non-life insurance companies are also considering similar levels of reduction, so car insurance premiums are expected to decrease overall this year.

According to the industry on the 16th, Samsung Fire & Marine Insurance plans to apply the reduced premiums in April after preparations such as updating their computer systems. The implementation may be delayed depending on the verification of premium rates.

This adjustment of car insurance premiums comes two years after a 3% increase in January 2020. Samsung Fire & Marine Insurance explained that they decided to lower premiums to share the benefits of improved car insurance loss ratios with customers, due to reduced vehicle usage and fewer accidents caused by the prolonged COVID-19 pandemic.

Last year, as car insurance recorded a surplus due to decreased mobility from COVID-19 and non-life insurers achieved record-high performance, calls for premium reductions arose.

However, non-life insurance companies have stated that last year’s car insurance surplus was temporary due to COVID-19, and they have experienced deficits for a considerable period, making reductions difficult.

But with Samsung Fire & Marine Insurance, the industry leader in car insurance, deciding to reduce premiums, major competitors are expected to follow suit with similar adjustments.

The combined market share of the four major non-life insurers?Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, DB Insurance, and KB Insurance?is about 85% in the car insurance market.

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