Japan Insurers Will Need To Restrain Auto Rates, but Fire Rates Going Up To Meet Rising Costs

The General Insurance Rating Organization of Japan, or GIROJ, a nonprofit corporation independent from the government but regulated by the Financial Services Agency, cut its reference rates for auto insurance by an average of 3.8% as of June 30 and increased those for fire insurance by an average of 10.9%. We expect that the changes will result in auto insurance premiums falling, but by less than 3.8% as insurers tweak their products such as by adding new riders. For fire insurance, we expect premiums to rise by the full amount of the reference-rate change.