Korean auto insurance slowed in 2017

April 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.

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