Hyundai Marine & Fire Insurance, a major South Korean motor insurer, has followed suit with the market’s other general insurers in lowering motor insurance premiums alongside a government initiative to alleviate the public of high insurance costs.
The insurer announced that it will reduce its motor insurance premiums for both individual and corporate policyholders by 1.5% for contracts effective August 21 onwards.
This comes after Dongbu Insurance, one of Hyundai Marine & Fire’s competitors, announced that it will lower motor premiums for businesses by 1.3% and individuals by 0.8%.
An official of Hyundai Marine & Fire told
Pulse News that the insurer decided to lower premiums due to a steady fall in the number of car accidents, as well as an overall improvement of the motor insurance industry. A reduction in natural disasters also helped the insurer improve its loss ratio. As of the end of May, its combined ratio stood at 97.6%.
Other major general insurers in South Korea have lowered, or are expected to lower, their premiums as well, amid government pressure. Samsung Fire & Marine, the country’s largest general insurer, said that it had already reduced its motor insurance rates at the end of last year, but it is still thinking of cutting them further. Another competitor, KB Insurance, is also likely to do so.
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