Japan’s vehicle insurance costs to climb in new year

The country’s big 4 players may raise premiums up to 5%.

Four major Japanese nonlife insurance companies are planning to raise car insurance premiums by approximately 3.5% to 5% in January 2025, reported Jiji Press. 

This move is driven by increased insurance payouts due to rising prices and a higher frequency of natural disasters.

The companies involved are Tokio Marine & Nichido Fire Insurance, Sompo Japan Insurance, Mitsui Sumitomo Insurance, and Aioi Nissay Dowa Insurance. 

Tokio Marine is considering a 3.5% increase, whilst Sompo Japan, which did not raise premiums this year following an auto insurance scandal involving Bigmotor, is expected to implement a 5% hike, according to sources.

In June, the General Insurance Rating Organisation of Japan, comprising nonlife insurance companies, announced a 5.7% increase in the benchmark for vehicle insurance premiums.