This photo provided by Samsung Fire & Marine Insurance Co. shows the insurer's headquarters in southern Seoul.

This photograph offered by Samsung Fireplace & Marine Insurance coverage Co. exhibits the insurer’s headquarters in southern Seoul.

SEOUL, Feb 16 (Korea Bizwire)Samsung Fireplace & Marine Insurance coverage Co., South Korea’s high non-life insurer, stated Wednesday it would reduce its auto insurance coverage premiums by a median 1.2 p.c in April on falling loss charges.

It’s going to mark Samsung Fireplace & Marine Insurance coverage’s first premium discount since 2020, when its automobile insurance coverage premium elevated greater than 3 p.c amid hovering deficits.

Samsung Fireplace & Marine Insurance coverage, the non-life insurance coverage arm of high conglomerate Samsung Group, stated it has made the choice as its auto insurance coverage loss price improved due to fewer automobile accidents amid the COVID-19 pandemic.

The loss price refers back to the proportion of protection a non-life insurer pays to its policyholders from insurance coverage premiums. The upper the loss price is, the extra seemingly insurers will endure extra of a burden.

The transfer by Samsung Fireplace & Marine Insurance coverage Co. is broadly anticipated to immediate different main trade gamers — Hyundai Marine & Fireplace Insurance coverage Co., DB Insurance coverage Co. and KB Insurance coverage Co. — to comply with swimsuit.

The 4 main trade gamers management round 85 p.c of the nation’s auto insurance coverage market.

Final yr, the 4 companies’ loss charges had been estimated to vary from 79.6 p.c to 81.5 p.c. Their break-even loss price is thought to be about 80 p.c.

In January 2020, native non-life insurers jacked up their auto insurance coverage premiums by 3.3-3.5 p.c amid rising losses.

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Final yr, nonetheless, these companies posted their first earnings from the automobile insurance coverage phase in 4 years amid the extended coronavirus pandemic, resulting in a name for cuts of their premiums.

(Yonhap)

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