ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Insurance

Natural disasters force Japanese insurers to raise premiums again

4% hike on corporate policies in 2021 comes on heels of October increase

The town of Marumori in Miyagi Prefecture was just one of many areas hit hard by Typhoon Hagibis in October. (Photo by Konosuke Urata)

TOKYO -- Reeling from increased claims due to a spate of natural disasters, Japan's four major insurers plan to raise premiums on fire insurance policies for businesses by about 4% as early as January 2021.

The increase follows fresh hikes announced just last month.

At about the same time, individual policy holders will also be hit with hikes on similar policies, which cover fire, flooding and wind damage.

The four companies -- Tokio Marine & Nichido Fire Insurance, Sompo Japan Nipponkoa Insurance, Mitsui Sumitomo Insurance and Aioi Nissay Dowa Insurance -- are taking their cue from the General Insurance Rating Organization, which calculates the reference rates used to set premiums.

The expected hike comes as the country's insurers have faced increased payouts after a number of natural disasters battered the country.

Payouts for both corporate and individual policies in fiscal 2001 totaled around several tens of billion yen, and reached 744.9 billion yen ($6.82 billion) in fiscal 2004.

This spiked to the historic high of 1.57 trillion yen in fiscal 2018, due largely to damage inflicted by Typhoon Jebi.

This fiscal year, ending March 2020, the four insurers face heavy payouts from typhoons Faxai and Hagibis, pushing claims from these two disasters alone to well over 600 billion yen.

The full-year total "is highly likely to reach 1 trillion yen," including the impact from other disasters, such as the July flood in Kyushu, according to an executive of one of the insurers.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media