KOREAN INSURERS PLEDGE TO REDUCE LOSSES

Korea’s 14 casualty insurers said last week that they would find ways to improve corporate performance. They were responding to a call to insurers from the country’s president Roh Moo-hyun to cut their ever-growing losses in the motor sector. The Korea Non-Life Association said in response that “we will secure more transparency in management and improve our financial health through more sound management”. The increasing number of reported accidents in Korea has caused motor insurers’ loss ratios to surge, with the red ink widening since 1999, when the companies first moved into negative territory. Combined losses reached 448.3bn won in 2004 and losses are expected to be higher for 2005.