Press
Announcement on Filing of Revised Standard Full Rates for Earthquake Insurance
Release Date: July 12, 2019On May 28, 2019, General Insurance Rating Organization of Japan (Chairperson: Michitaro Urakawa), GIROJ for short, filed the revised Standard Full Rates for earthquake insurance with the Commissioner of the Financial Services Agency, based on the second sentence of Paragraph 1 of Article 9-3 of the Act on Non-life Insurance Rating Organizations.
Outline of filing
Since the initial filing on September 30, 2015, Standard Full Rates for earthquake insurance have been through a three-phased revision process. The filed rates this time are for the final revision. The details of the filing are as follows.
1. The basic rates are to be increased by a national average of +5.1%.
The indicated rate changes vary based on the combination of prefecture and construction class (A or B) *,
with a maximum increase of + 14.7% (construction class B in Fukushima prefecture)
and a maximum decrease of - 18.1% (construction class A in Aichi, Mie, and Wakayama prefectures).
- * Construction class A: Mainly non-wooden buildings; Construction class B: Mainly wooden buildings.
The transitional measure* for the basic rates is also to be revised.
- * The transitional measure is applicable to the contracts for some buildings in construction class B.
2. The Lump-sum discount factors* for long-term contracts are to be revised (revision of long-term coefficients).
* The discount factors are applicable to contracts for a policy period of two to five years. The longest policy period for earthquake insurance contracts is five years.
[Three-phased revision process]
- 1st phase: Filed on September 30, 2015 and revised on January 1, 2017 (a national average increase of +5.1%)
- 2nd phase: Filed on June 15, 2017 and revised on January 1, 2019 (a national average increase of +3.8 %)
- 3rd phase: Filed on May 28, 2019; a revision date is yet to be announced (a national average of +5.1%)
Please click the link below for further information.
Announcement on Filing of Revised Standard Full Rates for Earthquake Insurance [ 599KB ]