Loss rate for auto insurance companies rises in first quarter on higher traffic, costs
Published: 22 Apr. 2026, 14:31
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The nation's four major nonlife insurers, including Samsung Fire & Marine Insurance, logged an average loss rate of 85.9 percent for auto insurance from January through March, according to data from the General Insurance Association of Korea.
The rate marks a rise of 3.4 percentage points from a year earlier.
In March alone, the rate stood at 81.5 percent, also up 4 percentage points from the prior year, according to the latest findings.
Loss rate refers to the proportion of coverage a nonlife insurer pays to its policyholders from their insurance premiums.
The higher the loss rate is, the more money the insurer is paying out in claims, and the more likely it is for the insurer to go into the red.
The association said the loss rate increased in the first quarter of the year as the number of road accidents rose in line with higher vehicle traffic. Costs for repairs and auto part prices also moved up during the period.
Yonhap
with the Korea JoongAng Daily
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