A surge in Tesla deliveries has sent shockwaves through South Korea’s auto insurance market, as the electric vehicle’s high repair costs and unique safety risks are pushing insurers’ loss ratios to unsustainable levels. Industry analysts warn that the rapid adoption of Tesla models—known for their expensive parts and complex damage claims—could force insurers to either raise premiums sharply or tighten coverage for electric vehicles. With traditional combustion-engine cars accounting for a shrinking share of the market, insurers are scrambling to adjust underwriting models before profitability erodes further. The shift highlights broader challenges as automakers accelerate the transition to high-tech, high-maintenance electric vehicles.
Tesla boom raises concerns over Korean auto insurers' loss ratios The Korea Times
