(picture: Korea Bizwire)
SEOUL, April 18 (Korea Bizwire) – Automotive insurers in South Korea turned to a revenue in 2021 for the primary time in 4 years because of a pandemic-caused fall in loss charges and an increase in insurance coverage premiums and subscribers, knowledge confirmed Monday.
In keeping with the information by the Monetary Supervisory Service (FSS), 12 automobile insurers’ mixed working revenue got here to 398.1 billion received (US$323.7 million) final yr, a turnaround from a lack of 379.9 billion received tallied a yr earlier.
They turned to a revenue for the primary time since 2017.
The turnaround was attributable to an increase in insurance coverage premiums and subscribers. A fall in loss charges stemming from fewer outside actions amid the pandemic additionally contributed to the revenue, the FSS mentioned.
Automotive insurers’ loss charges stood at 81.5 % final yr, down 4.2 proportion factors from a yr earlier, the information confirmed. It was the bottom degree since 2017.
As of end-2021, the dimensions of the automobile insurance coverage trade grew to twenty.28 trillion received by way of authentic premiums, up 3.7 % from a yr earlier. It was the primary time that the market measurement has exceeded the 20 trillion-won mark.
The FSS mentioned it is going to carefully watch the automobile insurance coverage market, anticipating the accident charges may enhance down the highway as most social distancing curbs have been lifted, a transfer that may enable folks to extend their outside actions.
(Yonhap)
