South Korea's auto insurance industry posted an underwriting loss of 184.8 billion won in the first half of 2026, its first such loss in six years, as claims costs rose faster than earned premiums. The Financial Supervisory Service said the combined ratio increased 2.2 percentage points to 101.9%, with the loss ratio rising to 84.9% and the expense ratio reaching 17.0%. Direct written premiums rose 4.2% to 10.6384 trillion won after a 1.3% average premium increase and growth in insured vehicles to 25.96 million, but hospital treatment and repair costs increased despite a 4.5% decline in accidents. Investment profit rose 20.2% to 422.8 billion won, helping keep total industry profit positive at 238 billion won, though this was down 37.7% from a year earlier. Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, KB Insurance and DB Insurance all reported underwriting losses, while the FSS said it would work with related agencies to embed new measures for minor auto injury claims and press insurers to pass loss-ratio improvements on through lower premiums.