As the number of natural disasters such as typhoons increases, the premium for "fire insurance" that compensates for damage is expected to rise further from next year.
Estimated insurance premiums The organizations created by non-life insurance companies have entered into final adjustments in the direction of raising the amount by about 10%, the largest ever.
The insurance premium for fire insurance, which compensates for damage to houses caused by natural disasters such as typhoons and heavy rains, is determined based on the "reference net rate" calculated by the "general insurance rating organization" made by each non-life insurance company. I have.
According to interviews with related parties, JQA has entered into final adjustments to raise the average of all contract terms by about 10% for this reference net rate.
The reference net rate was raised by 5.5% in 2018 and 4.9% in 2019 due to the frequent occurrence of natural disasters, but it will be the largest ever if the rate of increase is about 10%.
JHF plans to notify the Financial Services Agency of the increase in the reference net rate by the end of the month, and in line with this, non-life insurance companies are expected to raise their insurance premiums one after another from next year.
Regarding fire insurance, companies are considering shortening the contract period that does not change insurance premiums from the current maximum of 10 years to 5 years, which is likely to increase the burden on households.