The old losses sold until September 2009… Samsung Fire & Marine Insurance 19%↑, major non-insurance companies 15-17%↑
Insurance premiums for subscribers of Samsung Fire & Marine Insurance’s old indemnity medical insurance (indemnity insurance) will be the largest in the industry this year.
Samsung Fire & Marine Insurance announced on the 19th that it will raise the premium for the old indemnity insurance by 19% in April.
Excess non-life insurance is a product that sold out until September 2009 and then went out of print.
After that, it was followed by standardized real loss insurance and new real loss insurance (since April 2017).
An official from Samsung Fire & Marine Insurance said in a conference call to announce the results of 2020 the day before, “We will raise the premium for imprisonment loss by 19%, the largest in the industry.” Said.
Earlier, in December last year, the Financial Services Commission presented an opinion that reflects about 80% of the increase rate desired by insurance companies for pretext non-life insurance, and each company followed it.
Accordingly, it is expected that the premiums of each company’s pretext non-life insurance will increase by 15-17% in April, when the adjustment is made.
However, the increase rate of Samsung Fire & Marine Insurance, the number one in the industry, was determined at a level more than 2 percentage points higher than the rest of the insurance companies.
An official from the insurance industry said, “Last year, Samsung Fire & Marine Insurance raised the premium for non-life insurance premiums less than other insurance companies and lowered it in 2019,” he said.
When the average increase rate of the top four non-life insurers in 2019 was 9%, Samsung F&M cut 2%, and last year, the increase rate was 2-3 percentage points lower than that of the top four non-life insurers.
The official explained that the increase rate was decided at 19% (24% × 0.8) as the Financial Services Commission presented a’opinion’ that it would be better to reflect 80% of the expectations of each company’s increase.
Standardized loss insurance premiums, which came out after pretext non-life insurance, rose 10 to 12 percent for each company last month, and new loss insurance was frozen.
Although real-life insurance is a private insurance, it has the characteristics of a’national insurance’ with an individual subscriber of 34 million (excluding group contractors), so the opinions of the financial authorities have a decisive influence on the premium increase rate.
The fact that the financial authorities allowed Samsung Fire & Marine Insurance to increase insurance premiums by nearly 20% proves that the loss ratio of real-life insurance is so serious.
In 2019, the’risk loss amount’ of real-life insurance was 2.8 trillion won, and the’risk loss rate’ recorded 133.9%.
The insurance industry predicted that the risk loss rate would exceed 130% according to the trend until the third quarter of last year, and argued that the profit and loss could be met only by raising the premium to the level of the legal increase rate upper limit (25%).
/yunhap news