Japan:Non-life insurers to raise premiums by 6-8%

Four major Japanese non-life insurers plan to raise their fire insurance premiums for homes by a national average of 6-8% in January 2021, reported Jiji Press quoting informed sources.

The first simultaneous premium hikes by the four since October 2019 will follow a rise in insurance payouts on the back of a series of natural disasters across the country.

They are Tokio Marine & Nichido Fire Insurance, Sompo Japan Insurance, Mitsui Sumitomo Insurance and Aioi Nissay Dowa Insurance. In Japan, fire insurance policies also cover damages from wind and flooding.

The premium hikes will be made in response to a string of natural disasters, such as torrential rains in western Japan and Typhoon Jebi, which caused heavy damage to Kansai International Airport, both in 2018.

Insurance payouts from non-life insurers in 2018 in Japan hit a record high of over JPY1.5tn ($14bn). Insurance payouts exceeded ¥1tn in 2019 because a large number of houses were damaged in disasters, including Typhoon Faxai.

The General Insurance Rating Organization of Japan, a group of non-life insurers, raised reference insurance premium rates it calculates in October last year. Non-life insurers are likely to continue raising premiums, as Japan has been hit by many large-scale natural disasters over the last few years.

Source: Asia Insurance Review