Nippon Life Insurance Co., Ltd., the largest life insurance company, announced that it will raise premiums for some of its annuity insurance and whole life insurance from April.
It is said that it is because the ultra-low interest rate is prolonged and it is difficult to manage the funds entrusted by the contractor.
According to the announcement, Nippon Life will raise premiums such as "pension insurance" and "whole life insurance" that pay insurance money every month from the contract on April 2nd.
The price increase will vary depending on the contract details, but the average price increase will be about 1%.
For example, if a 30-year-old man enrolls in "pension insurance," which allows him to receive 1 million yen in insurance money every year from the age of 65 for 10 years, the monthly premium will be 210 yen higher than the current 22,400 yen, or 20,000. It will be 2610 yen.
The company says that since 2016, when the Bank of Japan introduced a negative interest rate policy, the yield of government bonds has been low for a long time, making it difficult to manage the funds entrusted by policyholders.
According to the company, it is the first time in five years since 2017 that premiums have been raised for insurance products with high savings, such as annuity insurance, due to the deterioration of the operating environment.