Financial Services Commission to Promote Auto Insurance and Fuel Card Discounts Linked to Passenger Car Weekday Restriction System

Financial Sector Mobilized to Counter High Oil Prices Amid Middle East Conflict

The government is pursuing a set of public welfare measures linked to the implementation of the passenger car 5-day operation system, including discounts on automobile insurance premiums and fuel card benefits. As oil and natural gas prices continue to surge daily due to the Middle East war, the government plans to announce comprehensive public welfare measures involving the entire financial sector.

On March 25, 2026, a notice for the passenger car weekday operation system was posted on the entrance door of the Government Seoul Office in Jongno-gu, Seoul, as the public sector's 'Passenger Car 5-Day Operation System (Weekday System)' was officially implemented for energy saving due to the Middle East crisis. Photo by Jo Yongjun

According to the financial industry on March 29, the Financial Services Commission convened executives from non-life insurance companies and officials from the General Insurance Association of Korea on March 27 to discuss support measures for automobile insurance in response to high oil prices.

During the meeting, discussions primarily focused on discounting or refunding insurance premiums in connection with driving restriction policies such as the passenger car 5-day operation system.

It was reported that a plan to offer discounts on automobile insurance premiums in accordance with the government-implemented 5-day driving restriction was reviewed at this meeting.

There was also discussion of refunding a portion of insurance premiums to those who do not drive their vehicles on the restricted days under the 5-day system.

On March 26, the Financial Services Commission also requested additional support measures from credit card companies through the Credit Finance Association to alleviate the burden of fuel costs.

One proposal was to strengthen per-liter (ℓ) discounts offered by fuel cards.

Currently, fuel cards on the market generally offer discounts of 40 to 150 won per liter.

Authorities reportedly requested that companies consider providing additional benefits when a certain amount is spent.

This move is understood to be in response to the rapidly rising fuel prices, which are reducing the effective discount rate per liter.

However, it is understood that concrete plans for automobile insurance premium discounts or enhanced fuel card benefits have not yet been finalized.

The industry has expressed willingness to cooperate in the spirit of sharing the burden, but concerns remain due to poor business conditions.

In the non-life insurance sector, loss ratios for automobile insurance have exceeded 80% in recent years, resulting in a deficit of approximately 708 billion won last year, and the sector has been struggling.

Accordingly, major non-life insurance companies raised automobile insurance premiums this year by just over 1% for the first time in five years.

The credit card industry is also concerned about deteriorating profitability.

The Financial Services Commission intends to develop public welfare measures not only for insurance and credit card companies, but also for major financial holding groups and the entire financial sector, and will announce support measures for the industry in response to the Middle East crisis.

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