Starting in October, four prominent non-life insurance companies in Japan are planning to increase fire insurance premiums by approximately 10% nationwide, as reported by sources familiar with the matter.
According to a report from Nippon, the decision to raise premiums comes in response to escalating payouts related to natural disasters and the increasing costs associated with home repairs.
The insurers reportedly implementing this rate adjustment include Tokio Marine & Nichido Fire Insurance Co, Sompo Japan Insurance Inc, Mitsui Sumitomo Insurance Co, and Aioi Nissay Dowa Insurance Co. This adjustment marks the first premium increase in two years for these companies.
As an illustration, a 20-million-yen fire insurance policy covering a wooden house in Tokyo, built 30 years ago, will see an annual premium hike of approximately 3,000 yen, resulting in a total annual premium of 52,000 yen.
Last year, the Financial Services Agency endorsed a plan for the non-life insurance sector to elevate reference rates for fire insurance by an average of 13%. These reference rates serve as benchmarks that insurers use to determine premiums for policyholders.
In related news from Japan, the General Insurance Association (GIAJ) has recently disclosed the latest insurance claim statistics stemming from the Noto Peninsula earthquake that occurred on January 1, 2024. These claims represent a combined tally from GIAJ members and the Foreign Non-Life Insurance Association of Japan.
