SEOUL, Apr. 18 (Korea Bizwire) — Growth in South Korea’s auto insurance market slowed last year due to intensifying competition and lower premiums, data showed Wednesday.
The car insurance market grew 2.7 percent on-year to 16.8 trillion won (US$15.7 billion) in 2017, according to the data by the Financial Supervisory Service.
The figure contrasts with 11.3 percent growth in 2016 and an 8.8 percent rise in 2015.
Non-life insurers’ loss rate for their auto insurance businesses fell 2.1 percentage points to 80.9 percent last year, the data showed.
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, at the end of last June.
The percentage was up from 15.5 percent a year earlier. Of the online subscribers, 69.4 percent purchased insurance via computers, with the remainder applying through smartphones.