00:03korea's eight-week rule for car accident claims is showing results faster than expected auto
00:09insurance loss ratios have fallen by roughly three percentage points analysts now see higher
00:15profits for major insurers it's monday october 26 let's break down what's happening in korea's
00:22financial sector under the rule minor injury patients who seek treatment beyond eight weeks
00:28face an additional review insurers have long blamed excessive treatments of minor injuries for
00:35leaking claims costs the rule is now a key variable in next year's auto premium decisions
00:41here's what the numbers show the average auto loss ratio at samsung fire hyundai marine kb insurance and
00:49db insurance fell from 89.4 percent in january to 85.0 percent in september insurers paid 1.4388 trillion
01:00won
01:01about 1.09 billion dollars in future treatment costs to minor injury patients last year that was up 7.1
01:09from 2021 kb securities projects loss ratios at major insurers will fall a cumulative 3.1 percentage
01:18points over three years that could add about 150 billion won or 113 million dollars in profit per
01:27insurer over the same period separately the gap between variable and hybrid fixed mortgage rates at the five
01:34major banks has narrowed to about 0.2 percentage points so what does this mean for financial sector
01:42watchers earlier we said the rule is working faster than expected here's what that actually means for
01:48you lower loss ratios improve underwriting margins at major insurers and weaken the case for raising auto
01:55premiums next year october and november loss ratios at the big four insurers the industry's decision on next
02:03year's auto premiums the number of patient appeals under the new review process that's today's ai prism
02:11finance daily this episode was produced with ai assistance based on sole economic daily reporting
02:17and reviewed by a human editor ai prism is a juan ifra award-winning series we'll be back tomorrow
