The Korea Times close
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
Business
  • Tech
  • Bio
  • Companies
Finance
  • Companies
  • Economy
  • Markets
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
Entertainment
& Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
Sports
  • Beijing Olympics
World
  • SCMP
  • Asia
Video
  • Culture
  • People
  • News
Photos
  • Photo News
  • Darkroom
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
Finance
  • Companies
  • Economy
  • Markets
Wed, February 2, 2022 | 23:26
Non-life insurers suffer worsening loss rate
Posted : 2019-09-24 18:42
Updated : 2019-09-24 20:18
Print Preview
Font Size Up
Font Size Down
By Jhoo Dong-chan

The nation's non-life insurers, who were hit hard by more than a 100 percent loss rate in the automobile insurance sector last month, are expected to suffer an even worse loss rate in the sector this month.

They have raised car insurance premium twice this year in an attempt to to cut the losses, but their ever-worsening business in the sector shows no signs of recovery.

Samsung Fire & Marine Insurance CEO Choi Young-moo
Samsung Fire & Marine Insurance CEO Choi Young-moo
Domestic non-life insurers recently announced a plan to downsize their insurance benefits while again raising car insurance premiums, but face strong opposition from customers as well as the financial authorities.

Industry insiders said domestic non-life insurers suffered disappointing earnings in the first half of the year and are likely to see a continued downtrend in the second half due to deteriorating loss rates in the sector.

The nation's largest non-life insurer Samsung Fire & Marine Insurance said it posted a 426.1 billion won ($357.2 million) net profit in the first half, down 36 percent from a year ago.

Another non-life giant, Hyundai Marine & Fire Insurance, marked a 163.9 billion won net profit in the period, but this was also down at 36.1 percent from the same period last year.

Data suggest the insurers are likely to continue to see disappointing earnings for a while because of the typhoons that hit the peninsula this month.

Samsung Fire & Marine Insurance CEO Choi Young-moo
Hyundai Marine & Fire Insurance CEO Lee Cheol-young
According to a study released by the General Insurance Association of Korea, insurance claims from Typhoon Lingling totaled 6.94 billion won during the first week in September.

"Lingling didn't come up with heavy rain, so there weren't that many insurance claims, but the following Typhoon Tapah brought a downpour and quite a number of cars were flooded or destroyed. This will raise the loss rates in the automobile sector," said an industry insider asking not to be named.

The study suggested the loss rate in the automobile insurance sector of the nation's nine largest non-life insurers stood at 98.8 percent and 100.1 percent in July and August, respectively.

This means domestic non-life insurers paid 988,000 won and over 1 million won in car insurance claims in July and August for every 1 million won worth of automobile premiums they received each month.

Analysts said the deteriorating loss rates in the car insurance sector will slow down an earnings recovery for domestic non-insurers.

"Generally, car insurance claims increased in the second half. These firms are unlikely to post strong earnings due to their car insurance business," said DB Financial Insurance researcher Lee Byung-gun.



Emailjhoo@koreatimes.co.kr Article ListMore articles by this reporter



 
  • Lunar New Year: A time for 'manly sport'
  • Metaverses, shamanism and Christianity
  • A closer look at COVID-19 home treatment in Korea
  • Korea urged to explore ways to reduce China reliance
  • Indian students in Korea feel pinch due to soaring airfare
  • Daily life in Beijing as 2022 Winter Olympic Games kick off [PHOTOS]
  • Market Kurly, SSG.com uneasy about IPO amid plunging stock market
  • The crisis of democracy: John Adams and Plato
  • Israeli, German embassies pay tribute to Holocaust victims
  • Woowa Brothers pressed to earn more for Delivery Hero
  • Dark side of non-celebrities shooting to fame on reality TV shows Dark side of non-celebrities shooting to fame on reality TV shows
  • [INTERVIEW] Choi Woo-shik shares pressure of returning to TV with 'Our Beloved Summer' [INTERVIEW] Choi Woo-shik shares pressure of returning to TV with 'Our Beloved Summer'
  • Not-to-miss art exhibitions, fairs in 2022 Not-to-miss art exhibitions, fairs in 2022
  • Singer Chris Brown sued for rape Singer Chris Brown sued for rape
  • Jimin of BTS tests positive for COVID-19 Jimin of BTS tests positive for COVID-19
DARKROOM
  • Daily life in Beijing as 2022 Winter Olympic Games kick off [PHOTOS]

    Daily life in Beijing as 2022 Winter Olympic Games kick off [PHOTOS]

  • Celebrating Lunar New Year amid the ongoing pandemic

    Celebrating Lunar New Year amid the ongoing pandemic

  • Daily life in Afghanistan under Taliban rule

    Daily life in Afghanistan under Taliban rule

  • How snow looks around the world

    How snow looks around the world

  • Pictures of the year 2021

    Pictures of the year 2021

The Korea Times
CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Location
  • Media Kit
  • Contact Us
  • Products & Service
  • Subscribe
  • E-paper
  • Mobile Service
  • RSS Service
  • Content Sales
  • Policy
  • Privacy Statement
  • Terms of Service
  • 고충처리인
  • Youth Protection Policy
  • Code of Ethics
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group