Pay attention to whether the four major non-insurance companies will follow… Variables such as maintenance number
MG Non-life Insurance, which has the worst auto insurance performance in the non-life insurance industry, raised auto insurance premiums by an average of 2%.
According to the insurance industry on the 11th, MG Non-life Insurance announced that as of the 16th, it will raise personal auto insurance premiums by an average of 2%.
The 2.0% increase rate is the average increase rate based on the total premium income, and a much higher increase rate is applied to contractors subject to premiums such as accidents and old vehicles.
MG Non-life Insurance explained that “the premium was adjusted according to the performance of the loss ratio.”
The loss ratio refers to the ratio of insurance premium payments to insurance premium income.
In general, the non-life insurance industry sees the 78-80% loss ratio as a’proper loss ratio’ that does not result in a deficit.
Last year, the loss ratio of MG Non-life Insurance, which has a market share of less than 1% in the auto insurance market, was the highest at 107.7% among 11 non-life insurance companies that handle auto insurance.
MG Non-life Insurance recorded the worst loss ratio in 2019.
According to the insurance industry, Lotte Insurance and Carrot Insurance, whose loss ratio exceeded 90% last year, are also known to plan to raise their premiums as early as next month.
The rate of increase has not been confirmed.
AXA Insurance is pushing for an increase in commercial vehicles.
Commercial vehicles are mainly rental cars, so there is little impact on individual drivers.
As of the third quarter of last year, the market shares of Lotte Insurance and MG Insurance were 1.3% and 0.2%, respectively, and Carrot Insurance was only 0.1%.
An official in the insurance industry said, “Large non-life insurers did good at managing the loss ratio amid the decrease in traffic due to Corona 19 last year, but some small insurers recorded large losses in auto insurance, so we know that an increase in premiums is inevitable.”
[표] Provisional loss ratio for last year’s auto insurance
┌──────────┬────────┬─────────┐
│ Insurance company │ Loss rate (%) │ Share at the end of the third quarter (%)│
├—————-┼———-┼——┤
│ Meritz Fire & Marine Insurance │ 81.9│ 3.6│
├—————-┼———-┼——┤
│ Hanwha Insurance │ 90.4│ 4.1│
├—————-┼———-┼——┤
│ Lotte Insurance │ 90.9│ 1.3│
├—————-┼———-┼——┤
│ MG non-life insurance │ 107.7│ 0.2│
├—————-┼———-┼——┤
│ Heungkuk Fire & Marine Insurance │ 94.7│ 0.8│
├—————-┼———-┼——┤
│ Samsung Fire & Marine Insurance │ 85.6│ 29.8│
├—————-┼———-┼——┤
│ Hyundai Shipping │ 85.4│ 20.7│
├—————-┼———-┼——┤
│ KB Insurance │ 84.7│ 13.2│
├—————-┼———-┼——┤
│ DB Insurance │ 84.4│ 20.6│
├—————-┼———-┼——┤
│ AXA non-life insurance │ 90.9│ 3.6│
├—————-┼———-┼——┤
│ The-K Insurance │ 91.2│ 1.6│
├—————-┼———-┼——┤
│ Carrot Insurance │ -│ 0.1│
├—————-┼———-┼——┤
│ Nonghyup Insurance │ -│ 0.4│
└──────────┴────────┴─────────┘
Materials, companies
As some small insurers are pushing for premium hikes, it is noteworthy whether the four major non-life insurers, which account for about 85% of the market share, including Samsung Fire & Marine Insurance, Hyundai Marine & Marine Insurance, KB Insurance, and DB Insurance will also raise their premiums within the year.
The maintenance industry has been demanding an increase in prices since the beginning of the year, which has emerged as a factor in raising premiums.
An official from the insurance industry said, “We cannot rule out the possibility that even large non-life insurers will consider an increase in accordance with the trend of the loss ratio this year.”
/yunhap news