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Announcement on Revision of Reference Loss Cost Rates for Fire Insurance
Release Date: September 15, 2023Pursuant to Article 9-1 Clause1 of the Act on Non-Life Insurance Rating Organization of Japan, the General Insurance Rating Organization of Japan (GIROJ; Shinichiro Hayakawa, Chairperson) filed revisions to the Reference Loss Cost Rates for the fire insurance to the Commissioner of the Financial Services Agency dated June 21, 2023, and on June 28, 2023, it was notified that the revision was confirmed to Article 8 of the Act.
Outline of revision
Reference Loss Cost Rates for Homeowners’ Comprehensive Insurance are to increase by a national average of 13.0 %.
Premium rates for water disasters will be segmentalized into five categories according to the regional risks.
♦ The figures for revised rates of Reference Loss Cost Rates described in this announcement may differ from those of insurance products that policyholders purchase from insurance companies.
Background of revision
ⅰ) It is necessary to adjust fire insurance premiums, as the amount of insurance claims for damages caused by natural disasters has increased, and the risk environment has changed significantly.
ⅱ) It is important to ensure the fairness among policyholders in terms of the burden of water disaster premium rates.
Please click the link below for further information.
Announcement on Revision of Reference Loss Cost Rates for Fire Insurance[ 631KB ]
(Attachment) Adoption of Segmentalized Water Disaster Premium Rates[ 796KB ]
