Sompo Japan Nipponkoa Insurance Inc. is ready to trim car insurance premiums for the first time in more than 11 years, thanks to solid earnings and increased competition from online insurers, company sources said Monday.
The company last reduced premiums in January 2004, by 1.0 percent on average, and had raised them five times through 2014, by about 1 to 3 percent each time. The reduction planned from October would see them reduced by an average of just 0.2 percent.
But premiums could increase in some cases, depending on driver age and type of vehicle. Elderly and young drivers, for example, are generally deemed to be more prone to accidents.
Other major Japanese insurers, including Tokio Marine & Nichido Fire Insurance Co., Mitsui Sumitomo Insurance Co. and Aioi Nissay Dowa Insurance Co., are expected to keep car insurance premiums steady, refraining from another streak in hikes.