In 2017, the motor insurance market in Korea recorded a year-on-year growth of 2.8 percent in premium income. This robust growth was supported by the expansion of the personal injury protection market and a growing number of registered vehicles. Meanwhile, the loss ratio fell by 1.3 percentage points year on year to 80.9 percent. The improved efficiency in claims handling and a decrease in accident occurrence rate were both the key factors behind the reduction in the loss ratio.
Our motor reinsurance business generated KRW 682.7 billion in gross written premiums in 2017, up 7.4 percent from the previous year. We also delivered better business results with a loss ratio of 77.1 percent, down 5.2 percentage points.
In the domestic market, we continued to support our clients with a newly established reinsurance program covering high risks in addition to the existing treaties, both proportional and non-proportional. We also strengthened our business relationships with local cooperatives and mutual associations by offering various reinsurance solutions. On the international front, we strived to diversify our business portfolio by expanding into new markets, particularly in the Middle East and Europe.
In 2018, the domestic motor insurance market is expected to grow by 3.2 percent to KRW 17.7 trillion in premium income, led by an increasing number of high-valued cars, and premium rate adjustment reflecting a rise in repair costs. However, the growth of the Internet-based insurance market and fierce competition may negatively affect the premium rates per vehicle.
We aim to achieve a 5.4 percent growth, or KRW 719.4 billion in gross written premiums from our motor business in 2018. We will keep providing reinsurance programs that meet our clients’ needs and demand. Furthermore, we will make our best efforts to grasp new business opportunities, and in doing so we seek to achieve mutual growth with our partners.