Seoul: Non-life insurers experienced a rise in loss rates for their auto insurance businesses during the first four months of the year, driven by increased traffic and rising costs, as revealed by industry data on Thursday. The nation's four major non-life insurers, including Samsung Non-Life Insurance, recorded an average loss rate of 85.8 percent for auto insurance between January and April.
According to Yonhap News Agency, this figure represents a 2.5 percentage-point increase from the same period a year earlier. The data highlighted that in April alone, the loss rate was 85.4 percent, a slight decrease of 0.3 percentage point compared to the previous year.
The loss rate is a measure of the proportion of coverage that non-life insurers pay out to policyholders from the insurance premiums collected. A higher loss rate indicates a greater likelihood of the insurer experiencing financial losses.