auto insurance-loss rate

Loss rate for auto insurance up in Q1

SEOUL, April 22 (Yonhap) -- Non-life insurers' loss rate for their auto insurance businesses rose in the first quarter due to a rise in traffic and increased costs, data showed Wednesday.

The nation's four major non-life insurers, including Samsung Non-Life Insurance, logged an average loss rate of 85.9 percent for auto insurance in the January-March period, according to the data by the General Insurance Association of Korea.

The reading marks a 3.4 percentage-point rise from a year earlier.

In March alone, the rate stood at 81.5 percent, also up 4 percentage points from a year earlier, according to the latest findings.

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.

The association said the loss rate increased in the first quarter as the number of accidents rose in line with more vehicle traffic, and costs of repairs and auto part prices all moved up during the season.

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