The auto insurance loss ratio through September this year fell slightly compared to the same period last year.
According to the property and casualty insurance industry on the 23rd, the cumulative auto insurance loss ratio (simple average) for January through September this year for four major insurers—Samsung Fire & Marine Insurance, Hyundai Motor Insurance, DB Insurance, and KB Insurance—was 84.7%, a decrease of 0.8 percentage points from the same period last year. The break-even point for auto insurance is a loss ratio of approximately 80%.
In particular, the September loss ratio was 85.0%, down by 8.8 percentage points from 94.2% in the same month last year. The property and casualty insurance industry estimates this result to be due to seasonal factors, such as a significant decrease in rainfall compared to the same month of the previous year, and a reduction in highway traffic volume.
In fact, highway traffic volume in September was 265,029,000 vehicles, a decrease of more than approximately 20 million vehicles from 285,377,000 vehicles in the same month last year. Rainfall during the same period also dropped sharply from 228.8mm to 26.4mm.
A property and casualty insurance industry official stated, “We are concerned about an increase in the number of accidents and the amount of personal injury damages per accident due to increased travel demand from autumn tourists during the peak foliage season in October.” The official added, “Furthermore, with various cost-increasing factors such as continued increases in repair costs and daily wages for workers, the loss ratio is expected to deteriorate in the future.”
in FINANCE
