Seoul: 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.
According to Yonhap News Agency, the reading marks a 1.8 percentage-point fall from a year earlier. Despite the decrease in February, the first two months of the year saw their loss rate standing at 88.1 percent, reflecting an increase of 3 percentage points from the same period last year.
The loss rate refers to the proportion of coverage a non-life insurer pays to its policyholders from insurance premiums. A higher loss rate indicates a greater likelihood of the insurer experiencing financial losses.