In October, four of Japan’s leading non-life insurers will raise fire insurance premiums by roughly 10% nationwide, according to individuals familiar with the matter.
Nippon’s report revealed that the increase is prompted by mounting payouts for natural disasters and rising costs for home repairs.
Sources said Tokio Marine & Nichido Fire Insurance Co, Sompo Japan Insurance Inc, Mitsui Sumitomo Insurance Co, and Aioi Nissay Dowa Insurance Co will collectively implement the rate hike, the first adjustment in two years.
As an example, a 20-million-yen fire insurance policy covering a wooden house in Tokyo that was constructed 30 years ago will see a yearly premium increase of around 3,000 yen, bringing the total annual cost to 52,000 yen.
Last year, the Financial Services Agency sanctioned a plan for the non-life insurance sector to boost reference rates for fire insurance by an average of 13%. Insurers use these rates as benchmarks to determine premiums for their policyholders.
In other news from Japan, the General Insurance Association (GIAJ) recently released the latest insurance claim figures from the Noto Peninsula earthquake that occurred on January 01, 2024. The claims are a joint tally by members of the GIAJ and the Foreign Non-Life Insurance Association of Japan.
