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Car insurance market edges down in H1 as competition bites

All News 06:00 August 10, 2018

SEOUL, Aug. 10 (Yonhap) -- South Korea's auto insurance market contracted slightly in the first half of this year, hit by intensifying competition and lower premiums, data showed Friday.

The car insurance market shrank 1.2 percent on-year to 8.4 trillion won (US$7.5 billion) in the January-June period, according to the data by the Financial Supervisory Service.

Non-life insurers' loss rate for their auto insurance businesses rose 3.9 percentage points to 81.7 percent in the first half, the data showed.

Car insurance market edges down in H1 as competition bites - 1

The dip comes as more drivers are turning to online marketing channels for insurance, which offer lower premiums and are more convenient.

According to the Korea Insurance Development Institute, 20.5 percent of the nation's 15.4 million car insurance policyholders filed their applications through cyber marketing channels, such as smartphones and computers, in June last year.

The number was up from 15.5 percent a year earlier. Of the online subscribers, 69.4 percent purchased insurance via the Internet, with the remainder applying through smartphones.


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