Japan’s Vehicle Insurance Costs to Climb in New Year
Several of Japan’s largest non-life insurance companies are preparing to raise their car insurance premiums, potentially increasing costs for drivers starting in January 2025. These increases, potentially between 3.5% and 5%, are driven by a combination of factors, including rising insurance payouts influenced by increased prices and a higher frequency of natural disasters, according to a recent report by Jiji Press.
The companies at the forefront of these planned adjustments include Tokio Marine & Nichido Fire Insurance, Sompo Japan Insurance, Mitsui Sumitomo Insurance, and Aioi Nissay Dowa Insurance.
Tokio Marine is considering a 3.5% increase. Sompo Japan, which did not raise premiums this year following an auto insurance scandal related to Bigmotor, is expected to implement a 5% hike, according to sources.
In June, the General Insurance Rating Organisation of Japan, which represents nonlife insurance companies, announced a 5.7% increase in the benchmark rate for vehicle insurance premiums. This indicates an industry-wide trend of rising costs and is a key indicator of how premiums are trending upward.
Image Description: Image of a red car, coins stacked representing increasing costs
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
