Last Month's Auto Insurance Loss Ratio at 85.1%... Up 4.9 Percentage Points Year-on-Year
Impact of Premium Reductions and Increase in Outings
Last month, the loss ratios for auto insurance at major non-life insurance companies increased.
According to the non-life insurance industry on May 21, the auto insurance loss ratio for the five major companies?Samsung Fire & Marine Insurance, DB Insurance, Hyundai Marine & Fire Insurance, KB Insurance, and Meritz Fire & Marine Insurance?stood at 85.1% (simple average of the five companies) last month, up 4.9 percentage points compared to the same period last year.
The cumulative loss ratio for January to April was 83.1%, an increase of 3.8 percentage points from the same period last year.
The insurance industry considers the break-even loss ratio for auto insurance to be in the range of 80% to 82%. If the loss ratio exceeds this level, it means insurance companies are incurring losses.
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An industry official stated, "The loss ratio has risen due to two independent factors: the reduction in insurance premiums for four consecutive years, and the increase in accident-related insurance payouts as a result of higher vehicle traffic from people going on outings."
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