S. Korea sees 189 large liability claims in a decade

It was an average of 19 claims per year and a loss amount of KRW3.2b per claim.

Over the past decade (January 2014 to September 2023) in South Korea, there were 189 large insured losses of KRW1b or more for general liability insurance or financial and professional (Fin Pro) liability insurance, Korean Re reported in their latest bulletin.

On average, these losses amounted to KRW76.8b per year, with an average of 18.9 claims annually and an average loss amount per claim of KRW4.1b.

In 2020, there were 22 claims totalling KRW242b, accounting for 31.5% of the total insured losses over the 10 years. 

Excluding 2020, there were 167 claims over nine years, with an average annual aggregate loss of KRW58.5b, translating to an average of 19 claims per year and a loss amount of KRW3.15b per claim.

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The top five large insured losses in 2020 were primarily recalled losses, totalling KRW196.6b, which comprised 81.2% of the total loss amount for the year.

In the general liability insurance business, the majority of accidents occurred in commercial general liability (CGL) and product liability, accounting for 52% of total accidents. 

However, the highest loss amounts were recorded in CGL, product liability, and product recall, which collectively accounted for 82% of the total loss amount.

For Fin Pro liability insurance, Directors and Officers (D&O) and Bankers Blanket Bond (BBB) accounted for 55.3% of total accidents, with the highest loss amounts recorded in D&O and Financial Institution (FI) Package Insurance.

Overall, the top 10 highest insured losses for casualty insurance totalled KRW302.5b, with general liability dominating the large liability claims.