South Korea: Motor business dips in 1H2018
Source: Asia Insurance Review | Sep 2018
South Korea Motor
South Korea’s auto insurance market contracted slightly in the first half of this year, hit by intensifying competition and lower premiums, according to data from the Financial Supervisory Service (FSS).
The car insurance market shrank 1.2% year on year to KRW8.4tn ($7.5bn) in the January-June period, reports the Yonhap news agency citing the FSS data.
Non-life insurers’ loss rate for auto insurance businesses rose by 3.9 percentage points to 81.7% in the first half, the data show. More drivers are turning to online marketing channels for insurance, which offer lower premiums and are more convenient.
According to the Korea Insurance Development Institute, 20.5% of the nation’s 15.4m car insurance policyholders filed their applications through cyber marketing channels in June last year. The proportion was up from 15.5% a year earlier. A