A leading general insurer in Japan has begun reviewing their earthquake insurance policies by conducting a reassessment of damage risks for each region of the quake-prone country.
By January 2018,
Tokio Marine & Nichido Fire Insurance will raise premiums for several areas, including the Shikoku region, which could be damaged by an expected powerful earthquake and the accompanying tsunami along the Nankai Trough off central Japan’s Pacific coast. The insurer is also keep monitoring the Sagami Trough off Kanagawa Prefecture.
Earthquake insurance premiums are set to rise up to 50% in Tokushima, Kochi, Ehime, Wakayama, Ibaraki, Shizuoka, and Kagawa prefectures. On the other hand, premiums are set to go down for several areas in the Tohoku, Hokuriku, Chugoku, and Kyushu regions, reports the Japan Times.
According to the insurer, the nationwide average earthquake insurance premium rate will remain mostly unchanged after the review. Several areas’ premiums will have no change, including heavily populated Tokyo and Osaka prefectures.
One of its competitors,
Sompo Japan Nipponkoa Insurance, had already revised its premium classification groups in February. Instead of classifying risks by the 78 prefectures, it divided the country into 948 areas based on postal codes. Premiums for coastal areas were increased due to tsunami risks, while inland areas’ premiums were reduced.
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