Japanese Fire Insurance Fees to Rise 10 Pct in Oct.

Tokyo, May 8 (Jiji Press)--Four major Japanese nonlife insurance companies will raise fire insurance premiums by an average of some 10 pct nationwide in October, people familiar with the matter said Wednesday.

The companies will raise the premiums for the first time in two years as they face rising insurance payouts due to increasingly severe natural disasters and higher costs for house repairs.

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

For example, premiums on a 20-million-yen fire insurance contract for a wooden house built 30 years ago in Tokyo will rise by about 3,000 yen to 52,000 yen per year.

The Financial Services Agency last year approved the nonlife insurance industry's plans to raise reference rates for fire insurance policies by 13 pct on average. Reference rates are used by insurers to set premiums.

[Copyright The Jiji Press, Ltd.]