Nonlife insurers to cut auto insurance premiums from April

Korean nonlife insurers will slash auto insurance premiums starting in April after weeks of discussions with the country's financial regulator, sources said Tuesday.

The insurers decided on Tuesday to cut the premium by 2.3 percent, to take effect for new contracts starting in April, according to the insurance industry and financial sources.

The premium cut will mainly be offered to light-weight vehicles with a 1.6 liter engine or below, in a move to help low-income earners. That includes about 3.2 million vehicles, or 34 percent of all automobiles registered in the country.

Foreign models and those with engines over 3.0 liters will be excluded from the markdown, they said.

Samsung Fire & Marine Insurance Co., the country's top nonlife insurer, and its rival Dongbu Insurance Co. agreed to the 2.3 percent cut and are taking necessary steps to carry out the process, the sources said.

AXA Direct Korea Co., the local unit of global insurance firm AXA Group, is also planning a cut. Other players including Hyundai Marine & Fire Insurance Co., LIG Insurance Co. and Meritz Fire & Marine Insurance Co., will likely follow suit, according to the sources. (Yonhap)