Insurance loss ratio ↓… Insurance premium increase ↓

[이데일리 김유성 기자] As the auto insurance loss ratio recorded in the low 80% last month, discussions about an increase in auto insurance premiums are expected to rush for the time being. It is interpreted that the accident rate fell as the social distancing and the Lunar New Year holidays overlapped with the spread of Corona 19.

However, if Corona 19 calms down and external activities of subscribers become active, the accident rate may soar. It is a position that the non-life insurance industry cannot be relieved as there is still a task to improve over treatment.

Photo: Image Today

According to the non-life insurance industry on the 7th, the auto insurance loss ratio of the four major non-life insurance companies (Samsung Fire, Hyundai Marine, KB Insurance, and DB Insurance) was estimated at 79.6 ~ 82.0% last month. Compared to the end of last year, this number has not changed much.

The non-life insurance industry sees an appropriate loss ratio below 80%. Until 2019, the auto insurance loss ratio of these non-life insurers exceeded 90%. For this reason, demands for an increase in auto insurance premiums have come from within these insurance companies.

The insurance industry cited the continuing social distancing due to the spread of Corona 19 as the cause of this loss ratio decline. Thanks to this, vehicle movement decreased during the Lunar New Year holiday, leading to a decline in the accident rate.

In addition, the loss ratio itself decreased as the non-life insurance industry raised auto insurance premiums last year. The annual loss ratio of the four major non-life insurers recorded 84.4-85.6% last year, down 5.4 to 7.3 percentage points from 2019.

(Data = each company)

However, the non-life insurance industry is concerned about the post-coronavirus. Because it can soar at any time. An official in the insurance industry said, “It could be a temporary effect from the Corona 19 situation.”

Another insurance industry official said, “What insurers fear is the post-disaster situation,” and said, “As insurance premium claims that have been postponed so far, there is a high possibility that spending will increase from the standpoint of insurance companies.”

In one corner of the industry, there is an opinion that the system needs to be improved to prevent over-treatment. Currently, even in the case of minor injured patients, it is possible to receive treatment without any limitation of duration and amount only by subjective symptom complaint without objective evidence.