Auto Insurance Loss Ratio Reaches 84.8% Through July...Slight Increase Year-on-Year

July Loss Ratio Down by 5.9%p
"Expected to Worsen Due to Heavy Rain Damage in August"

The cumulative auto insurance loss ratio for the period up to July this year was reported at 84.8%, a slight increase compared to last year.

On the 9th, when a heavy rain warning was issued for Asan, Chungnam, a vehicle was submerged under Bonggang Bridge in Asan City. Photo by Yonhap News Agency

According to the non-life insurance industry on the 24th, the cumulative auto insurance loss ratio of the four major companies—Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, DB Insurance, and KB Insurance—for January through July this year stood at 84.8%, up by 0.8 percentage points year-on-year.

However, the loss ratio for July alone was 86.2%, which is a decrease of 5.9 percentage points compared to last year.

The difference stems from the fact that, whereas last year’s heavy rain damages were concentrated in July, this year’s damages from localized heavy rainfall in South Gyeongsang Province—such as vehicle flooding and wet-road accidents—mostly occurred in August.

A non-life insurance industry official stated, "The loss ratio is expected to deteriorate going forward due to the heavy rain damage in August, increased repair labor costs, and rising wages for day laborers, all of which contribute to higher costs."

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