Korean auto insurance slowed in 2017April 19 2018 by InsuranceAsia News Staff
The latest statistics suggest that the growth in Korea’s auto insurance market slowed last year amid stiff competition and lower premiums.
In 2017, the car insurance market expanded by 2.7% year-on-year to W16.8 trillion (US$15.7 billion), said the Financial Supervisory Service.
This figure was significantly lower than the 11.3% growth in 2016 and the 8.8% growth in 2015.
The data revealed that the loss rate for non-life insurers’ auto insurance businesses dropped 2.1 percentage points to 80.9% last year.
The data likewise showed that more drivers are shifting to online marketing platforms to buy insurance, probably because such platforms offer lower premiums and are more convenient.
The Korea Insurance Development Institute reported that as of the end of June last year, 20.5% of the nation’s 15.4 million car insurance policyholders filed their applications through cyber marketing channels such as smartphones and computers.
- August 14
Companies face progressive tightening in risk-based capital measures and upward movement in interest rates.
- August 13
The country's motor market saw a 1.2% contraction during the first half of the year.
- July 23
The move by the country's biggest life insurer comes as it responds to the planned introduction of IFRS 17.
- July 2
The modest growth was fuelled by an increase in the sales of savings and pension insurance products.