SEOUL, Nov. 24 (Yonhap) — Non-life insurers’ loss rate for their auto insurance businesses continued to rise in October due to reduced insurance premiums and increased traffic accidents, data showed Monday.
The nation’s four major non-life insurers, including Samsung Non-Life Insurance, logged an average loss rate of 87.4 percent for auto insurance last month, according to the data by the General Insurance Association of Korea.
The reading marks a 2.2 percentage-point jump from a year earlier.
In the first 10 months of the year, their loss rate stood at 85.7 percent, also up 4.2 percentage points from the same period last year, according to the data.
The loss rate refers to the proportion of coverage a non-life insurer pays to its policyholders from insurance premiums. The higher the loss rate is, the more likely it is for the insurer to go into the red.
sam@yna.co.kr
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Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.