Major non-life insurance insurance payments totaling 1 trillion yen Impact of two typhoons

Major non-life insurance insurance payment amount of 1 trillion yen Impact of two typhoons 19:57 on November 19

The amount of insurance payments for Typhoon No. 15 and Typhoon No. 19 that have been severely damaged in each region is expected to exceed 800 billion yen for only three major non-life insurance companies. Including other disasters, the total amount of payment this fiscal year is expected to be about 1 trillion yen, indicating the magnitude of damage.

The three major non-life insurance companies announced the estimated amount of insurance payments against natural disasters such as typhoons and floods this fiscal year in the interim financial results from April to September announced on the 19th.

According to it, the expected amount of insurance for damage caused by Typhoon No. 15 in September and Typhoon No. 19 last month was ¥ 365 billion for MS & AD Holdings, ¥ 272.0 billion for SOMPO Holdings, and Tokio Marine Holdings 231.8 billion yen, the total of the three companies exceeds 860 billion yen.

Furthermore, including the damage caused by heavy rains in Kyushu in August and snow damage that occurs every year, the total amount of insurance payments for this fiscal year is expected to be about 1 trillion yen for all three companies. The magnitude of damage from natural disasters can be seen in the scale that follows the previous year's highest payment of approximately 1.66 trillion yen.

In addition, because the insurance payments are expected to exceed expectations, all three companies have revised their forecasts for ordinary income for the current fiscal year downward.

Numerous premium increases

Fire insurance and earthquake insurance have been raising prices one after another due to a series of major natural disasters.

Fire insurance premiums are determined by calculating the probability of a disaster in the future for each prefecture. If insurance payments increase one after another due to damage from typhoons or flooding of rivers, the probability of disasters increases and insurance premiums increase.

The amount of insurance payments has been increasing recently. According to the non-life insurance association, in 2014 the damage caused by heavy snowfall in the Kanto region was 322.4 billion yen, and in 2015 it was 164.2 billion yen due to the heavy rain damage caused by typhoon 15 It was.

Also, last year in 2018, there were a series of large-scale disasters, with 195.6 billion yen due to heavy rain in western Japan, and Typhoon No. 21 that hit the Kansai region, which is the highest ever, with 1,067.8 billion yen, power outages in Shizuoka and Kanagawa prefectures. A wide range of Typhoon No. 24 paid 306.1 billion yen in insurance.

Following these natural disasters, major non-life insurance companies raised their premiums from 2% to 4% on a national average in October 2015, followed by a 6% to 7% increase on a national average in October. It was conducted. The price is expected to rise in January of next year.

In addition, due to the earthquake damage, each company has raised its insurance premiums for “Earthquake Insurance” in July 2014, January 2017 and then January, and will raise it again in January next year. .

How are insurance premiums determined?

The insurance premiums paid by fire insurance policyholders are divided into two categories: “net insurance premiums” and “additional insurance premiums”.

Net premiums are used to pay insurance money to policyholders in the event of a disaster, while additional premiums are used to cover insurance company expenses.

The “reference net ratio” is an index that is used as a guideline when deciding how much insurance premiums will be used to pay policyholders. A third-party organization will calculate the probability of a natural disaster occurring in the future and the expected amount of insurance payments for each prefecture.

As the number of natural disasters increases, the probability of the occurrence of a disaster increases in calculation, so the standard indicator will increase and the insurance premium will also increase.

Last year, due to heavy damage caused by heavy rains in West Japan and Typhoon No. 21, the national average indicator rose, and non-life insurance companies plan to raise their premiums in January next year. If the damage from Typhoon No.15 and No.19 is reflected in the standard indicator in the future, further price increases may occur.

On the other hand, non-life insurance companies independently determine additional premiums to be used for insurance company expenses. If costs such as labor costs can be reduced, a significant increase in insurance premiums can be suppressed.

Currently, non-life insurance companies are working to reduce labor costs by sending drones to the site of damage to confirm damage efficiently, and by grasping the extent of damage using satellite photographs. As the burden on policyholders increases due to successive increases in insurance premiums, cost reduction is an issue.

In case of a detached house in Tokyo

Fire insurance premiums vary depending on the prefecture and the structure of the building, as disasters vary by region.

According to Sompo Japan Nipponkoa's trial calculation, the insurance premium for a fire-resistant single-family house in Tokyo with a fire insurance of 20 million yen for a building and 10 million yen for a household property is 5000 yen over the past four years. It is getting higher.

Specifically, until September 2015, the insurance premium was 15,000 yen for one year and 18,000 yen for household goods, for a total of 35,000 yen.

From October 2015 onwards, buildings will be 14,000 yen and household goods will be 22,000 yen, for a total of 36,000 yen. Furthermore, since last month, the building is 17,000 yen and the household goods is 23,000 yen, for a total of 40,000 yen.

Based on last year's damage from Typhoon No. 21 and Typhoon No. 24, the national average premium is expected to rise again in January 2021.

In addition to the metropolitan areas of Tokyo, Osaka and Aichi prefectures, prices are expected to rise in Kumamoto and Miyazaki prefectures, but there are also areas in Shizuoka and Fukuoka prefectures where prices fall.