Major non-life insurance companies have decided to abolish the 10-year contract from October next year and renew it up to every 5 years for fire insurance that covers the damage caused by fires and natural disasters.
Amid a series of large-scale disasters and a rapid increase in insurance payments, the aim is to make it easier to raise insurance premiums by shortening the period until renewal, which is likely to increase the burden on households.
Currently, the maximum contract for fire insurance that covers damage to houses caused by natural disasters such as fires and typhoons is 10 years, and the insurance premium is decided in anticipation of how much disaster will occur in 10 years. increase.
However, in recent years, large-scale disasters have caused a series of rapid increases in insurance payments and the balance of payments has deteriorated, so major companies have decided to review the contract period of fire insurance.
Specifically, the 10-year contract will be abolished from October next year and shortened to a maximum of 5 years, and contractors who wish to have a long-term contract will need to renew the contract every 5 years.
As a non-life insurance company, the aim is to make it easier to raise insurance premiums by shortening the period until renewal.
In response to a series of disasters, major non-life insurance companies are expected to raise their insurance premiums from next year onward, which is likely to increase the burden on households.