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Insurers' 9-month profit rises 6.1% on fewer accidents amid pandemic

Financial Supervisory Service (Yonhap)
Financial Supervisory Service (Yonhap)
The combined net profit of insurance firms in South Korea gained 6.1 percent on-year in the first nine months of this year, partly supported by fewer car accidents as people stayed home amid the coronavirus pandemic, data showed Tuesday.

Life and non-life insurers saw their combined net profit increase by 319.5 billion won ($286.8 million) to 5.5 trillion won for the January-September period, according to data from the Financial Supervisory Service (FSS).

In a statement, the FSS said profits of non-life insurers gained because of fewer claims as losses in car insurance products narrowed amid the pandemic.

The combined net loss of their insurance operations narrowed by 408 billion won to 17.6 trillion won in the nine-month period.

The loss was partly due to a decline in sales of savings-type insurance products.

Insurance firms in South Korea have been hesitant to sell savings-type insurance products to meet stricter capital requirement rules. (Yonhap)

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