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Four of the largest general insurers in Japan are looking to raise their fire insurance premium rates by between 5% and 9%, beginning October.
The premium hike, which will be the first in four years, comes after a rise in insurance claims due to a string of natural disasters, Jiji Press reported. These disasters include Typhoon Jebi and torrential rains leading to flooding in western Japan in 2018. Pay-outs are expected to exceed the ¥1 trillion mark for the first time in history.
The higher premiums are expected to improve the insurers’ balance sheets, the report added.
Tokio Marine & Nichido Fire Insurance Co. will increase its premiums by average of 6% to 7% nationwide. Meanwhile, Sompo Japan Nipponkoa Insurance Inc. will charge 5% to 7% more in premiums. Mitsui Sumitomo Insurance Co. and Aioi Nissay Dowa Insurance Co. both plan to impose a premium hike of 6% to 9%. The exact rates will differ depending on the type of structure and its location.
General insurers in Japan have felt a crunch in recent years, with profitability from the motor insurance segment declining due to falling premium rates.
