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Announcement on Revision of Reference Loss Cost Rates for Voluntary Automobile Insurance
Release Date: August 30, 2024Pursuant to Article 9-1 Clause1 of the Act on Non-Life Insurance Rating Organization of Japan, General Insurance Rating Organization of Japan (GIROJ; Shinichiro Hayakawa, Chairperson) filed a revision of the Reference Loss Cost Rates for voluntary automobile insurance to the Commissioner of the Financial Services Agency dated June 24, 2024. On June 28, 2024, it was notified that the revision was in compliance with Article 8 of the Act.
Outline of revision
(1) Reference Loss Cost Rates for voluntary automobile insurance increase by 5.7% on average.
(2) Rate differentials (e.g., surcharges or discount rates) in risk classifications have been revised, and the discount rate for new cars has been expanded.
(3) An “Endorsement for Victim Relief Expense” has been established to address the expected spread of self-driving cars in the future.
(4) The rate for “specified small motorized bicycle” has been established.
♦The percentage changes described in this announcement may differ from those applied in the voluntary automobile insurance purchased by policyholders in practice.
Background of revision
(1) Rise in repair costs due to increased sophistication of automotive technologies, and due to recent inflation surge
(2) Reflection of actual risks in recent insurance statistics
(3) Expansion of coverage in consideration of expected spread of self-driving cars in society
(4) Compliance with the enactment of the Act Partially Amending the Road Traffic Act (Act No. 32 of 2022) and amendment of the Safety Standards of Road Transportation Vehicles (Ministry of Transport Order No. 67 of 1951)
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Announcement on Revision of Reference Loss Cost Rates for Voluntary Automobile Insurance[ 672KB ]
