Korean nonlife insurers are expected to suffer losses in their car insurance business for the 2011 fiscal year, largely due to massive payouts caused by the downpour that battered the country last summer, data showed Wednesday.
The combined losses of 14 local nonlife insurers reached 321.8 billion won ($286.0 million) in the April-December period in 2011, according to the nonlife insurance association data.

The association said losses worth 56.2 billion won were tallied as a result of the heavy rains in July that submerged many cars.

This was followed by losses reaching 152.4 billion in November and December, due to an unusually high number of accidents.

Some industry watchers said the insurers’ sizable losses run counter to recent moves to cut the premiums for car insurance. This move has been pushed by the local financial regulator.

On Tuesday, major nonlife insurers, including leading player Samsung Fire & Marine Insurance Co., decided to lower their car insurance premiums by 2.3 percent. 

(Yonhap News)