Japan: Insurers to raise quake premiums from 2017
Source: Asia Insurance Review | Nov 2015
An association of Japanese non-life insurers have reported to the Financial Services Agency their plans to raise quake insurance premium rates by 19% on average across the nation in three stages from 2017.
Under the plans, the premium rates will go up by an average of 5.1% in January 2017, according to the General Insurance Rating Organization of Japan. The subsequent increases will be take place in later years, reported Jiji Press.
For buildings made of reinforced concrete and other fireproof materials, the premium rates will be raised in 36 prefectures.
In Fukushima, Ibaraki, Saitama, Tokushima and Kochi, the rates will be about 50% higher than the current levels after the three-stage hike.
Meanwhile, quake insurance premium rates will go down in the 11 remaining prefectures, including Hokkaido, Aichi and Mie, thanks to improvements in the seismic capabilities of buildings.