KB Sonbo "Auto Insurance Premiums Reduced by About 2.0%"

Effective from the contract starting February 25 next year

[Asia Economy Reporter Minwoo Lee] KB Insurance has decided to reduce automobile insurance premiums by about 2%.

KB Insurance plans to lower personal automobile insurance premiums by approximately 2.0% for contracts with coverage starting from February 25 next year. The final timing and rate of the premium reduction will be confirmed after an internal product review committee, and may vary depending on the rate verification process by the Korea Insurance Development Institute.

Next year's automobile insurance market is not optimistic due to increased traffic from eased social distancing and rising insurance costs, but the premium reduction was decided to share the economic burden on customers caused by high inflation.

Earlier in April, KB Insurance also reduced personal automobile insurance premiums by 1.4% as the loss ratio improved due to decreased vehicle usage and accidents amid the prolonged COVID-19 pandemic. The loss ratio is the ratio of insurance claims paid by the insurer to the total premiums received from policyholders.

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A KB Insurance official stated, "Although the automobile insurance market environment remains challenging due to accumulated automobile insurance deficits, seasonal loss ratio increases in winter, and cost increases from demands for higher repair fees, we decided to reduce premiums to ease the economic burden on customers caused by high inflation. We will continue to strive to set automobile insurance premiums at reasonable levels linked to the loss ratio."

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