auto insurance-loss rate

Loss rate for auto insurance up through May

SEOUL, June 23 (Yonhap) -- Non-life insurers' loss rate for their auto insurance businesses rose in the first five months of the year due to a rise in traffic, industry data showed Tuesday.

The nation's four major non-life insurers, including Samsung Non-Life Insurance, logged an average loss rate of 84.7 percent for auto insurance in the January-May period, according to the data.

The reading marks a 1.9 percentage-point rise from a year earlier.

In May alone, the rate stood at 80.8 percent, down 0.3 percentage point from a year earlier, the data showed.

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.

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