Non-life insurers see improved car insurance loss ratios

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South Korean non-life insurers saw their loss ratio on the number of claims slightly improve in 2023.

The latest data released on Monday found that the country’s top four non-life insurers hit an average of 80 percent in loss ratio for car insurance as of 2023, down 0.4 percentage points from the previous year. These top four insurers are Samsung Fire & Marine Insurance Co., Hyundai Marine & Fire Insurance Co., KB Insurance Co., and DB Insurance Co.

The decrease suggests that the insurers have managed loss ratios, given that a range of 78 to 82 percent loss ratio is considered appropriate.

But insurers are expected to face a risk of higher loss ratios in 2024 as they lowered car insurance premiums as part of their customer-friendly programs.