Korean non-life insurers will slash auto insurance premiums starting in April after weeks of discussions with the country’s financial regulator, sources said Tuesday.

The insurers will decide on the exact rates for the cut and most likely announce them by the end of this month to take effect for new contracts starting in April. The rate cut will likely be between 2-4 percent, the sources said.

Samsung Fire & Marine Insurance Co., the country’s top nonlife insurer and its rival Dongbu Insurance Co. wrapped up their review of the markdown, according to the sources.

AXA Direct Korea Co., the local unit of global insurance firm AXA Group, is also planning a cut, they said. Other players including Hyundai Marine & Fire Insurance Co., LIG Insurance Co. and Meritz Fire & Marine Insurance Co., will likely follow suit when the top two firms decide on the rates.

However, the premium cut will only be available for personal lightweight vehicles and small cars, while foreign models and those with engines over 3.0 liters are to be excluded, they said. 

(Yonhap News)