Japan Nonlife Insurers to Raise Premiums in 2021

Economy

Tokyo, Nov. 13 (Jiji Press)--Four major Japanese nonlife insurance companies are expected to raise insurance premiums in January 2021, after their insurance payments spiked following torrential rains in western Japan in 2018, it was learned Wednesday.

The companies are seen boosting property and other insurance premiums for corporate clients by around 4 pct, while those for individuals are being discussed.

The four are Tokio Marine & Nichido Fire Insurance Co., Sompo Japan Nipponkoa Insurance Inc., Mitsui Sumitomo Insurance Co. and Aioi Nissay Dowa Insurance Co.

The industry as a whole paid out over one trillion yen in benefits related to flood and wind damage sustained in 2018. This year also saw large-scale disasters, such as powerful Typhoon Hagibis, which caused massive flooding in Fukushima, Nagano and other prefectures.

An estimate suggests that insurance payments related to Hagibis alone will exceed one trillion yen. Given this, premiums may climb further after the 2021 hike.

[Copyright The Jiji Press, Ltd.]

Jiji Press