Loss rate for auto insurance down in Feb.

car insurance-loss rate

Loss rate for auto insurance down in Feb.

SEOUL, March 24 (Yonhap) -- Non-life insurers' loss rate for their auto insurance businesses fell in February due to increased insurance premiums, data showed Tuesday.

The nation's four major non-life insurers, including Samsung Non-Life Insurance, logged an average loss rate of 86.7 percent for auto insurance last month, according to the data by the General Insurance Association of Korea.

The reading marks a 1.8 percentage-point fall from a year earlier.

In the first two months of the year, their loss rate stood at 88.1 percent, up 3 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.

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