Seoul: Non-life insurers' loss rate for their auto insurance businesses rose to a yearly high in September due to reduced insurance premiums and a rise in traffic that led to a raft of claims, data showed Wednesday. The nation's four major non-life insurers, including Samsung Non-Life Insurance, logged an average loss rate of 94.1 percent for auto insurance last month, according to the data by the General Insurance Association of Korea.
According to Yonhap News Agency, the reading marks a 7.8 percentage-point jump from a year earlier. In the first nine months of the year, their loss rate stood at 85.4 percent, also up 4.3 percentage points from the same period last year, according to the data. The loss rate refers to the proportion of coverage a non-life insurer pays to its policyholders from insurance premiums. The higher the loss rate is, the more likely it is for the insurer to go into the red.