Car insurance premiums expected to decrease by up to 2%, while indemnity insurance premiums projected to rise by around 9%

[Asia Economy Reporter Changhwan Lee] Next year, automobile insurance premiums are expected to decrease by up to the 2% range, while indemnity insurance premiums are projected to rise by up to the 9% range.

According to the insurance industry on the 18th, non-life insurance companies such as Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, and DB Insurance, along with the Life & Non-life Insurance Association, are expected to gradually announce the results of adjustments to automobile insurance and indemnity insurance premiums next week.

Regarding automobile insurance premiums, non-life insurers initially considered a 1% reduction, but due to strong complaints from the political sector, they plan to lower premiums by up to the 2% range.

Once these non-life insurers announce the automobile insurance premium reductions, after preparation procedures, the changes will be applied sequentially starting from customers who enroll in February next year.

Earlier, some non-life insurers including Samsung Fire & Marine Insurance reflected the improvement in automobile insurance loss ratios due to reduced vehicle usage and accidents amid the prolonged COVID-19 pandemic, lowering personal automobile insurance premiums by 1.2?1.3% in April and May.

Indemnity insurance, which has been pushing for premium increases in the double digits due to annual deficits of around 2 trillion won, has decided to cap next year’s increase rate at a single digit, up to the 9% range, reflecting the burden on low-income households and concerns about inflation.

This increase rate is expected to be applied immediately from January next year.

Due to a surge in excessive medical treatments, the loss ratio of indemnity insurance for generations 1 to 4 is estimated to record the mid-to-high 120% range this year, following 132.5% last year. A loss ratio exceeding 100% means that insurers are operating at a loss in indemnity insurance.

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