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Overview

1. Calculation and provision of Reference Loss Cost Rates and Standard Full Rates

The GIROJ produces insurance statistics by compiling a large volume of data reported primarily by its members*1. Based on these statistics, the GIROJ calculates reference loss cost rates (advisory pure premium rates) and standard full rates (advisory gross premium rates), using actuarial science and scientific/engineering approaches*2, to provide rates for its members.

*1 The GIROJ compiles large quantities of reported data, taking into consideration the differences among members' products. *2 The GIROJ has developed natural hazard risk models for typhoons, floods and earthquakes, and calculates rates using engineering approaches. The risk models are backed by the outcomes of continuous joint academic research in study groups made up of experts in meteorology, seismology and architecture, as well as by historical insurance data.

2. Investigation of CALI claims

Under the Automobile Liability Security Act, no automobile shall be operated unless a contract for compulsory automobile liability insurance (CALI) has been concluded. As a neutral and independent organization, the GIROJ conducts claim surveys for CALI. The GIROJ has set up 56 CALI Claims Survey Offices all over Japan, to enable "fair, quick and considerate" claim surveys.

In this way, the GIROJ helps to protect the victims of automobile accidents and uses the data obtained from claim surveys to calculate fair premium rates, i.e. standard full rates for CALI.

3. Data bank

The GIROJ has accumulated a large volume of data from its members and other sources through its business activities over many years. Based on these data and highly-professional expertise, the GIROJ serves as a data bank for its members, consumers, government agencies, and experts.