Hanwha General Insurance has reported record auto insurance premiums in South Korea following its integration with Carrot General Insurance, with growth concentrated in the first quarter of 2026 and supported by a combined digital and traditional distribution approach.
The Asia Business Daily reported that six months after completing the integration of Carrot, Hanwha General Insurance said its auto insurance premiums exceeded 300 billion won in the first quarter of 2026. Within that period, March auto premiums were more than 110 billion won, the highest monthly volume the company has recorded in its motor portfolio. Hanwha links the result to a model that combines online and offline distribution. Carrot’s digital acquisition platform has been incorporated into Hanwha’s existing telemarketing and face-to-face networks, with Hanwha’s products and operations providing the core platform for underwriting and servicing.
The cyber marketing (CM) channel has been a significant contributor to this shift. Before the integration, Hanwha’s monthly auto premiums via CM averaged about 37 billion won. In the first quarter of 2026, that figure rose to around 40 billion won per month, representing an increase of roughly 10%. Over the same period, the insurer’s share of the South Korean auto market moved from 5.6% to 6%. According to the company, customers first acquired through CM are increasingly being engaged through telemarketing (TM) and in-person channels, where long-term products can be offered alongside auto cover. Long-term insurance sales linked to CM-originated customers have roughly doubled since the integration, pointing to greater use of follow-on sales from an initial motor policy.
The Carrot transaction has also reshaped how Hanwha manages claims. In the auto claims division, employees from Carrot and Hanwha have been brought together into a single organisation. The insurer presents this structure as part of its “hybrid general insurer” model, in which digital and traditional capabilities are intended to operate within one framework. Hanwha says its existing claims systems and experience have been combined with Carrot’s operational practices in the field. The company reports that internal indicators show shorter initial response times and more coordinated on-site handling of auto claims, although these assessments are based on its own monitoring. Internally, Hanwha describes the post‑integration structure as a “virtuous cycle” that links digital acquisition, multi-channel servicing, and claims handling, with the aim of managing both customer interactions and cost in the motor line.
Hanwha’s stronger auto results come as South Korea’s wider private motor market undergoes its first broad rate increase in around five years, a development followed closely by insurers and reinsurers across Asia. Industry sources indicate that four major non-life insurers – Samsung Fire & Marine Insurance, DB Insurance, Hyundai Marine & Fire Insurance, and KB Insurance – have completed auto tariff reviews with the Insurance Development Institute and are implementing premium increases of about 1.3% to 1.4%. Samsung Fire & Marine Insurance and Hyundai Marine & Fire Insurance are expected to adjust rates by around 1.4%, while DB Insurance plans to raise prices by roughly 1.3%, with KB Insurance preparing changes in a similar range.
The revised tariffs took effect from February 2026 and apply to both new business and renewals. This marks the first notable rise in Korean private motor premiums since 2021, following a period in which pricing changes were limited despite higher cost trends. As of 2024, the average annual auto premium in South Korea was about 692,000 won. With the new pricing, the typical annual cost per policyholder is projected to increase by around 9,000 won, reflecting an effort by carriers to address higher claims costs and loss ratios.
Motor insurance remains a central component of the South Korean non-life sector. Comprehensive motor policies account for roughly 87% of total motor premiums, while third‑party liability cover represents about 13%. This composition indicates that own-damage and bundled products occupy a large share of local motor portfolios. Market analysis by GlobalData suggests that the Korean motor segment is set for moderate premium growth over the medium term, supported by rate changes, continuing vehicle sales, and a recovery in liability business. Motor gross written premiums are projected to increase from an estimated 20.9 trillion won (US$15.6 billion) in 2025 to about 25 trillion won (US$18.6 billion) by 2029, implying a compound annual growth rate of roughly 4.5%.
Swarup Kumar Sahoo, senior analyst at GlobalData, said insurers are adjusting their portfolios in line with technology, mobility, and macroeconomic trends. “The South Korean motor insurance market is expected to grow with an increase in premium price, high premiums for EVs, a rising share of EVs, and increasing traffic accidents. However, the growth will be slower due to the growing popularity of usage-based insurance and an expected increase in the unemployment rate due to the US tariff on automobile imports,” Sahoo said.
Loss experience has been a key factor behind the recent premium changes. Data from the Financial Supervisory Service (FSS) show that, as of November 2024, the average motor loss ratio for the top four non-life insurers had reached 92.4%, up from 81.5% a year earlier, reflecting increases in both claims frequency and severity. Reported traffic accidents rose from 1.78 million in the first half of 2023 to 1.84 million in the same period of 2024. At the same time, South Korea’s target of achieving 100% electric new vehicle sales by 2040 is influencing how carriers price and structure motor products. EV policies generally carry higher premiums than those for internal combustion engine vehicles, reflecting differences in repair costs, including battery-related work and specialised diagnostics.
Usage-based insurance (UBI), supported by telematics, is also becoming more prominent, enabling more granular pricing based on driving behaviour but adding to competitive pressure as insurers use data to target particular customer segments. Digital distribution and comparison platforms are further increasing price transparency in personal motor lines. Hanwha’s post‑integration performance and the February premium increases show how one of the region’s larger motor markets is adjusting distribution models, pricing, and claims operations in response to shifts in risk, regulation, and customer expectations.
