According to the insurance industry on the 20th, Samsung Fire & Marine Insurance announced in a recent conference call that it is raising the premium for pretext loss by 19%. He also said that he would continue raising premiums in the future to normalize the loss ratio.
Although real-life insurance premiums have risen so far, the increase has been hard to find recently. It also means that the loss ratio of the old real-life insurance is not easy.
Exemptive non-life insurance is a product sold until September 2009. Since then, standardized losses (products sold from 2009 to 2017) and new losses (launched after April 2017) have improved the product structure. It’s a serious level. This is because it has a structure that can guarantee 100% of the product when it is released without any copayment. Accordingly, the problem of excessive medical service has been cited as a major factor in the burden of loss ratio in real-life insurance. The financial authorities decided to reflect about 80% of the increase rate desired by insurance companies for pretext non-life insurance last year. Due to the nature of real-life insurance, which has a strong national insurance character, the opinion of the financial authorities has a significant influence on the premium increase rate.
Initially, the insurance industry required a 20% increase in insurance premiums to improve the deficit structure of real-life insurance, but the Financial Services Commission put a brake on a 10% increase. In the end, it is said that the Financial Services Commission came up with a plan to reflect 80% of the increase rate requested by each company for excuses. It also decided to raise standardized losses by 60% and to freeze faithful losses.
An official from the financial authorities said, “The rate of increase in the premiums for each company is determined autonomously.”
Samsung Fire & Marine Insurance has the highest rate of premium increase for pretext non-life insurance. Samsung Fire & Marine Insurance presented a high rate of increase this time in consideration of the fact that last year it slightly raised the pretext loss insurance premiums compared to other insurance companies. In addition to Samsung Fire & Marine Insurance, other insurance companies are also planning to raise their premiums by 15-17% from April when the premium is adjusted.
The increase in premiums for the old real loss insurance is expected to continue in the future. This is because, although premiums have risen unprecedentedly in recent years, it is still insufficient to improve the deficit structure of pretext non-life insurance. The insurance industry has argued that the deficit structure can be improved only by raising it to the upper limit of the legal increase rate (25%). An official from the financial authorities said, “The increase will be decided according to the loss ratio, but the increase will be large this year, so it will be a little lower next year.”
(Seoul = News 1)
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