Samsung Fire & Marine Insurance Co., Korea’s largest nonlife insurer, said Thursday it will slash its auto insurance premiums by an average of 2.2 percent.

Samsung Fire’s move came after a recent decision by the local financial regulator and the industry to mark down car insurance premiums amid worries over the country’s rising inflation, which has increased the cost of living in the country.

The No. 1 nonlife insurer’s proposed rate is 0.1 percentage point lower than it initially offered, according to industry sources, who added that the company will begin developing a new program in March based on the lower rate.

Rival Dongbu Insurance Co. will cut its premiums by an average of 2.4 percent, spurring possible competition among the nonlife insurers in the country.

Other players including Hyundai Marine & Fire Insurance Co. and Meritz Fire & Insurance Co. are weighing reductions of between 2.2 and 2.4 percent, to follow suit, the sources said.

The revised car premiums are to take effect from April for all new contracts. (Yonhap News)