3%-5% rise expected in fire insurance

Kyodo

Nonlife insurance firms will consider raising fire insurance premiums by 3 to 5 percent in fiscal 2015 to make up for increased payouts resulting from natural disasters in recent years.

The burden on a policyholder who owns a single-family house would increase ¥1,000 to ¥2,000 a year, while the owner of an apartment could expect an additional cost of several hundred yen.

The industry body that collects insurance data for member companies plans to raise benchmark rates used to set fire insurance premiums. An application for the raise is expected to be filed with the Financial Services Agency by the end of this fiscal year on March 31.

Fire insurance covers damage to houses and other household property caused by fires, flooding, typhoons and other disasters. Earthquake damage is covered by add-on quake insurance, the standard premiums of which are set to rise by an average of 15.5 percent next July.