Sompo Japan Insurance will raise automobile insurance premiums by an average of around 5% from January 2027, following a 1.8% increase implemented in July 2026.
The further increase comes amid rising vehicle repair costs and insurance payouts, with the insurer seeking to improve the profitability of its motor insurance business.
The company’s average repair cost rose 7.9% year-on-year in the April-June period, driven by inflation and higher labour costs.
Sompo Japan expects its automobile insurance business to post a deficit for the financial year ending March 2027, according to a company source.
Other major Japanese non-life insurers are also raising motor insurance premiums. Tokio Marine & Nichido Fire Insurance plans to increase premiums by an average of around 6.5% from October 2026.