Motor Insurance Business Results for the First Half of 2018
The Korean motor insurance market contracted slightly in the first six months of 2018 amid intensifying price competition and a slowing growth in car registrations. The total premium income from motor insurance business decreased by 1.2 percent year on year to KRW 8,385.9 billion in the January - June period. The combined market share of four biggest insurers (Samsung, Hyundai, DB and KB) inched up to 80.5 percent. The motor insurance loss ratio worsened by 3.9 percentage points to 81.7 percent due to losses arising from heavy snow and cold waves in the first quarter of the year. The loss ratio went up to as high as 82.6 percent in the first quarter but then fell back to 80.7 percent in the second quarter. However, the expense ratio improved to 18.5 percent compared with 19.2 percent as a growing number of drivers are turning to online channels, which offer lower premium rates. This improvement helped reduce underwriting losses in spite of aggravating loss ratios.
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