Premium hikes to help Korea’s P&C firms

November 6 2018 by InsuranceAsia News Staff

Korea’s non-life insurance firms’ underwriting profits are forecast to improve during the next 12 months after premium hikes announced by the regulator in September 2018 and the cooling-down of competition in long-tail business lines, according to a new market segment report on Korea from AM Best.

However, the overall market is facing increased top-line pressures and tightening regulations.

In terms of underwriting performance, the market’s overall combined ratio has faced two offsetting trends in the past four years: a decreasing loss ratio, mainly due to premium hikes in the long-tail and motor insurance lines, and an increasing expense ratio as a result of heightened competition in long-tail business.

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