SPECIAL FEATURE

THE EARTHQUAKE INSURANCESYSTEM AND JER’S 50TH
ANNIVERSARY
Thanks to your help, JER celebrated the 50th anniversary of its founding in May this year. JER
started its operation with the launch of the earthquake insurance system and has since worked
alongside this system. In commemoration of our 50th anniversary, we published our corporate
history explaining the development and current status of the earthquake insurance system and
JER. In this report, we would like to trace the path back to events before and after the launchof the earthquake insurance system, by citing part of our corporate history.

DEVELOPMENTS IN THE NON-LIFE
INSURANCE INDUSTRY BEFORE THE
ESTABLISHMENT OF THE EARTHQUAKEINSURANCE SYSTEM
With Japan’s economy entering a period of high growth and its current account balance almost recovering, pressure from the West demanding that Japan commit to trade liberalization
increased. In 1964, Japan accepted the obligations of Article 8 of the International Monetary Fund (IMF) agreement by removing foreign exchange and import restrictions throughthe balance of payments. Japan also gained membership of the Organisation for Economic
Co-operation and Development (OECD) and was at the same time required to commit to theliberalization of capital.
Under such circumstances, in 1962, the Insurance Council held deliberations on improvement measures to strengthen the international competitiveness of Japan’s non-life insurancecompanies.
In November 1962, a subcommittee under the Insurance Council examined concrete measures
such as increasing the ability to cover losses, rationalizing premiums, extending coverage andestablishing new lines of insurance, entering overseas markets, improving sales agencies andenhancing the reinsurance mechanism. The issue of earthquake insurance and windstorm
and flood insurance was raised as one of the issues associated with extending coverage.
In response to this, at a meeting of the subcommittee held the following month, the Chairmanof the General Insurance Association of Japan, who attended the meeting as a member ofthe committee at the time, expressed the opinion that the non-life insurance industry should
examine positive and concrete measures.

OCCURRENCE OF THE NIIGATA
EARTHQUAKEThe Niigata Earthquake (M 7.5) occurred on June 16, 1964, around 1:00 pm, with a hypocenter off the shore of Niigata Prefecture. The earthquake affected nine prefectures, especially
Niigata, Akita and Yamagata prefectures, leaving 26 dead. As for damage to residences, 1,960
were completely destroyed, 6,640 were half destroyed, 15,297 were flooded.

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Japan Earthquake Reinsurance Co., Ltd. Annual Report 2016

SUPPLEMENTARY RESOLUTION AT THE
46TH ORDINARY SESSION OF THE DIET
Just when the Niigata Earthquake struck, the Finance Committee of the House of Representatives was in the process of deliberating a bill to partially amend the Insurance BusinessAct. Consequently, on June 19, three days after the earthquake, the following supplementary
resolution was passed, approving the proposed amendments to the act.

In a country with frequent earthquakes such as Japan, the inability to pay claims forfire damage caused by earthquakes is a problem for the insurance system. For now,
this House is giving guidance to ensure that non-life insurance companies take measures of some sort to deal with the recent earthquake disaster. This House should
also examine the establishment of an earthquake insurance system, taking the nuclear insurance that is already offered into consideration, and seek to further develop
and enhance the non-life insurance system in Japan, a country with frequent natural
disasters.

Following this supplementary resolution, Kakuei Tanaka, who was originally from Niigata Prefecture and was the Ministry of Finance at the time, consulted with the Insurance Council at
its 16th General Meeting on July 13, 1964, saying “It is a problem that, although Japan has
one of the highest levels of seismic activity in the world, the risk of earthquake is currently
barely covered under the existing non-life insurance system. It is now deemed necessary to
re-examine the system and promptly establish a system to contribute to the stabilization of
the livelihood of the nation at the time of sudden earthquake disasters. What is your view on
concrete measures?” In response, the Insurance Council immediately began examination anddeliberation of an earthquake insurance system led by its subcommittee.

LAUNCH OF THE EARTHQUAKEINSURANCE SYSTEMOn February 15, 1966, the Government passed cabinet resolutions approving the Bill Concerning Earthquake Insurance and the Bill on Special Account for Earthquake Reinsurance andthese were submitted to the 51st ordinary session of the Diet on February 17. The bills were
submitted to the Finance Committee of the House of Representatives on April 13 and to the
Finance Committee of the House of Councillors on April 19 and, following deliberation by bothcommittees, the bills were approved by the House of Representatives on April 28 and by theHouse of Councillors on May 11 and then promulgated and enacted on May 18. Government
ordinances and ministerial ordinances related to these bills were promulgated and enacted
on May 31 and June 1 respectively, and the structure for the earthquake reinsurance system
was thus put in place.
Japan Earthquake Reinsurance Co., Ltd. Annual Report 20163

Meanwhile, non-life insurance companies filed applications for approval to the Minister ofFinance with respect to basic documentation such as the statement of business procedures,
policy conditions, statement of calculation procedures for premium rates and policy reserves,and statement of procedures for use of property, pursuant to Article 1 of the Insurance Business Act (at the time). Property and Casualty Insurance Rating Organization of Japan (nowthe General Insurance Rating Organization of Japan) convened an extraordinary general meeting to determine earthquake premium rates and similarly filed an application for approval to
the Ministry of Finance. These applications were approved on June 1, 1966, and earthquake
insurance began to be sold with effect from the same date.
On May 30, 1966, Japan Earthquake Reinsurance Co., Ltd. was established with investment
by 20 domestic non-life insurance companies as an organization which arranges reinsurancewith the government. On June 1, 1966 JER received a license from the Ministry of Financeand began its operation.

OCCURRENCE OF EARTHQUAKEDISASTERS AND REVISION OF THE
EARTHQUAKE INSURANCE SYSTEM
Given the specificity of earthquake risk and the absence of any contingency reserves at thelaunch of the system, it was necessary to avoid excessive losses as a result of the first earthquake and the earthquake insurance system was fairly restrictive, limiting the maximum coveravailable to the low level of 900,000 yen for building and 600,000 yen for contents and limiting the degree of indemnified loss to total loss.
As explained in the Insurance Council report of 1965 which stated “This long-pending insurance still probably entails many problems that need to be resolved but we believe it is imperative to seek to launch this system based on a proposal that is realistically achievable rather
than expecting this essentially problematic insurance to be perfect from the outset”, it wasconsidered important to establish the system and make a start.
In addition, the Insurance Council report at the time stated “We hope that Government andnon-life insurance companies will continue to enhance the system with even greater vigor in
the future to meet social demands” and the supplementary Diet resolution passed at the timeof the Law Concerning Earthquake Reinsurance (Law No. 73 of May 18, 1966) was passed
also called for efforts to improve the operation of the earthquake insurance system, taking
changes after enactment of the law into consideration.
Against this background, the earthquake insurance system has been improved many times in
the past. These improvements were prompted by a range of factors, including changes in social and economic conditions such as rising prices or an increase in home ownership, as wellas advances in government research into earthquakes and improvement in the earthquake
resistance of buildings. However, it was feedback from earthquake victims that strongly called
for improvements in the earthquake insurance system.
If we count detailed revisions to the system, the system has been revised ten or so times since4Japan Earthquake Reinsurance Co., Ltd. Annual Report 2016

its establishment. However, in the fifty years since the system’s establishment, there havebeen three major in-depth revisions to coverage option such as loss categories and maximum
coverage. The earthquakes that were the so-called turning points for each of the revisions areshown below.
1987
Earthquake of the East Coast of Chiba
Prefecture M6.7
1989
Earthquake swarm near Izu peninsula

1964
Niigata Earthquake M7.5

2011 Tohoku-Pacific Ocean Earthquake
M9.0 (The Great East Japan Earthquake)

1966

1980

1991

1996

June – Establishment

July – Revision

April – Revision

January – Revision

1978
Miyagi Earthquake M7.4

1995
Southern Hyogo Prefecture Earthquake
M7.3 (The Great Hanshin-Awaji Earthquake Disaster)Then, following the 2011 Tohoku-Pacific Ocean Earthquake (magnitude 9.0) (The Great East
Japan Earthquake) on March 11, 2011, the examination of a complete overhaul of the system, led by the Ministry of Finance’s Earthquake Insurance System Project Team (chaired byMotohiro Sato, professor at Hitotsubashi University) began.

JULY 1980 REVISION
On June 12, 1978, the Miyagi Prefecture Earthquake struck. The earthquake had a magnitudeof 7.4 and an epicentre off the coast of Miyagi Prefecture. Under the earthquake insurance
system at the time, claims were paid only for total losses of buildings and the many buildingsthat were half destroyed or partly destroyed as a result of this earthquake were not coveredby insurance. Consequently, although there was extensive damage, only 190 policies werecertified as totally lost and paid claims amounted to no more than around 260 million yen.
Meanwhile, under the Building Endowment Insurance of Japan Agricultural Cooperatives,
which similarly indemnified losses caused by the earthquake, partial loss was also indemnified and around 2.8 billion yen was paid out. Earthquake insurance thus became the subjectof public criticism and there were calls for improvement from all quarters including policyholders. This problem was also taken up in the Diet and there was strong pressure for enhancement and early improvement of the earthquake insurance system. As a result, in June
1979, a report entitled Revision of the Earthquake Insurance System was produced and it was
decided to make sweeping revisions to earthquake insurance in line with this report.

APRIL 1991 REVISIONOn December 17, 1987, a 6.7 magnitude earthquake struck offshore Chiba Prefecture, causing damage not only to cities, towns and villages on the Pacific coast of Chiba Prefecture but
to virtually the entire prefecture.

Japan Earthquake Reinsurance Co., Ltd. Annual Report 2016

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The non-life insurance industry decided to introduce the “partial loss” category to expand
coverage and make earthquake insurance more widespread and, as a result, the method of
paying claims according to the current three categories “total loss”, “half loss” and “partial
loss” were established.

JANUARY 1996 REVISION
At 5:46 am on January 17, 1995, the 1995 Southern Hyogo Prefecture Earthquake struck. The
epicenter of this 7.3 magnitude earthquake was off the coast nearby Awaji Island.
The percentage of households enrolled in earthquake insurance directly before the Great
Hanshin-Awaji Earthquake Disaster had fallen to 7.0% (at the end of March 1994), the lowest
level since the establishment of the system, and the percentage of households enrolled in
Hyogo Prefecture was 2.9%, much lower than the national average. Consequently, the majority of disaster victims were unable to receive indemnification through earthquake insurance
and the system was unable to fulfill its purpose set out in Article 1 of the Law Concerning
Earthquake Reinsurance which was to promote the dissemination of earthquake insurance
thereby helping to contribute to the stability of the lives of disaster victims of an earthquake,
etc. Ultimately, claims paid through earthquake insurance amounted to no more than 65,427
claims or 78,346,970,000 yen.
Against this background, there were mounting calls to improve coverage and increase the appeal of earthquake insurance, in a bid to make earthquake insurance more widespread as ameans of self-help for earthquake disasters, and revisions such as increasing maximum coverage and reviewing premium rates were made.

EXAMINATION STATUS OF SYSTEMREVIEW FOLLOWING THE GREAT EAST
JAPAN EARTHQUAKEAt 14.46 on March 11, 2011, the most powerful earthquake recorded in Japan since records
began struck off the Sanriku Coast. The magnitude 9.0 earthquake caused violent tremors
and a large tsunami, resulting in unprecedented damage, mainly in the Tohoku and Kanto
regions. The Japan Meteorological Agency named this earthquake the 2011 Tohoku-Pacific
Ocean Earthquake, and the Government generally referred to the earthquake and the disaster
caused by the subsequent tsunami and aftershocks as the Great East Japan earthquake.
At the time of this unprecedented disaster, a huge number of insurance claims (780,000)
amounting to an enormous sum of money (over 1.2 trillion yen) were promptly paid to policyholders affected by the disaster through earthquake insurance, helping to rebuild and stabilize
the lives of the victims. However, at the same time, the contingency reserves of private-sector insurance companies were largely depleted following the payment of such an enormous
amount of claims, reducing their ability to pay future claims. There was also concern over the

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Japan Earthquake Reinsurance Co., Ltd. Annual Report 2016

occurrence of a large earthquake in the Tokyo Metropolitan area or the Nankai Trough in the
future, prompting calls for an increase in the robustness of the earthquake insurance system.
In the wake of the earthquake, a number of opinions regarding the commercial nature ofearthquake insurance were also put forward by policyholders affected by the disaster.
Under these conditions, the Basic Policy on Special Account Reform approved by Cabinet
resolution on January 24, 2012 stated with respect to the earthquake insurance system that
“In light of the recent earthquake, the Government will urgently revise the total amount ofapproved claims and the amount of public and private sector insurance liabilities and also
examine the commercial nature of earthquake insurance” and in April 2012, the Earthquake
Insurance System Project Team (hereinafter referred to as the “Earthquake Insurance SystemPT”; chaired by Motohiro Sato, professor at Hitotsubashi University) was established in the
Ministry of Finance.
The Earthquake Insurance System PT consisted of experts and academics from related fields,
and the General Insurance Association of Japan, Foreign Nonlife Insurance Association ofJapan, General Insurance Rating Organization of Japan, Financial Services Agency and JER
also participated as observers.
Where necessary, the views of outside experts involved in crisis management and relevant
ministries, agencies and organizations were sought, and energetic discussions were held, taking the actual situation of the people and areas affected by the Great East Japan Earthquake
into consideration and also listening to the opinions of policyholder and consumers.
From April 2012, discussions were held 12 times, and in November 2012, the Earthquake
Insurance System PT’s recommendations were published in a report. The report summarizedrecommendations relating to “general statement,” “resilience” “commercial nature” and “premium rates” divided into “urgent issues,” “issues to be addressed promptly” and “issues forfurther discussion.” In addition, from November 2013, approximately one year after publication of the report, the Earthquake Insurance System PT met to assess the status of initiatives
taken to address issues set out in the report.

PUBLICATION OF FIFTY YEARS OF JAPAN
EARTHQUAKE REINSURANCE CO., LTD.
In commemoration of our 50th anniversary, we
published Fifty Years of Japan Earthquake Reinsurance Co., Ltd. The book describes the development
and current status of the earthquake insurance
system and JER, and also records the collaborative initiatives undertaken between the public andprivate sectors to deal with the Great East Japan
Earthquake and the Great Hanshin-Awaji Earthquake. We hope it will be of reference to future
generations.

Japan Earthquake Reinsurance Co., Ltd. Annual Report 2016

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CHRONOLOGICAL TABLE OF
EARTHQUAKE INSURANCE AND JAPAN
EARTHQUAKE INSURANCE CO., LTD.
Year

Month

Earthquake insurance/JER developments

1964

Jun. Supplementary resolution to resolution approving
bill for partial amendment of the Insurance
Business Act
When passing a resolution on a bill amending
the Insurance Business Act in the 46th Ordinary
Session of the Diet, the House of Representatives
Finance Committee, prompted by the Niigata
Earthquake, adopts a supplementary resolution
urging examination of the earthquake insurance
system.
Jul. Minister of Finance Kakuei Tanaka consults the
Insurance Council over concrete measures for theestablishment of earthquake insurance.

1965

Apr. Insurance Council finalizes Report on the
Establishment of Earthquake Insurance

1966

Feb. Board of Directors of General Insurance
Association of Japan passes resolution to establish
Japan Earthquake Reinsurance Co., Ltd. (JER).
May Property and Casualty Insurance Rating
Organization of Japan convenes extraordinary
general meeting to determine earthquakepremium rates.
May Promulgation and enactment of Law Concerning
Earthquake Insurance
Promulgation and enactment of Earthquake
Insurance Special Account Law
Establishment of JER
May JER is established in Chiyoda Ward, Tokyo withcapital of 1 billion yen through investment by 20
non-life insurance companies.
Launch of only company in Japan permitted to
exclusively handle reinsurance for earthquake
insurance
May Enforcement Ordinance of Law Concerning
Jun. Earthquake Insurance promulgated and enacted
Earthquake insurance system launched (Japanese
non-life insurance companies start selling
earthquake insurance.)

1968

1972

May Revision of earthquake insurance system (revisionof total amount of approved claims, etc.)
300 billion yen –› 400 billion yen

8•Launch of dwellinghouse fire insurance
Apr. Revision of earthquake insurance system(introduction of optional addition, revision of total
amount of approved claims, etc.)
400 billion yen –› 800 billion yen
Jul. Start of underwriting of long-term (2-35 years)
earthquake insurance policies

Japan Earthquake Reinsurance Co., Ltd. Annual Report 2016

Major earthquakes
or volcanic eruptions•Niigata Earthquake(M7.5)•Launch of longterm comprehensive
insurance•Launch of groupinsurance

1973
1975

Major events•Ebino Earthquake(M6.1)(First timeclaims are paidsince launch of
the earthquake
insurance system)

Year

Month

Earthquake insurance/JER developments

1978

Apr. Revision of earthquake insurance system (revisionof total amount of approved claims, etc.)¥800 billion –› ¥1.2 trillion
Nov. Insurance Council decides that non-life insurance
subcommittee will deliberate the overhaul ofearthquake insurance, which was found to belacking at the time of the Miyagi Earthquake.

1979

Jun. Insurance Council issues report, “Revision of the
Earthquake Insurance System”

1980

Jul. Revision of earthquake insurance system(introduction of half-destroyed category, etc.)
Jul. Discontinuation of underwriting of long-term (2-35
years) earthquake insurance policies

1981

1982

Major events•Enactment of
Law on Special
Measures Concerning
Countermeasures
for Large-Scale
Earthquakes

Major earthquakes
or volcanic eruptions•1978 Miyagi
Earthquake (M7.4)•Revision of
Enforcement
Regulations of the
Building Standards
Law (introductionof new earthquake
resistant design
standards)
Apr. Revision of earthquake insurance system (revisionof total amount of approved claims, etc.)¥1.2 trillion –› ¥1.5 trillion•Establishment ofDisaster Preparedness
Week•1983 Japan Sea
Earthquake (M7.7)•1983 Miyakejima
Volcanic Eruption

1988– Introduction of our first computer system
Jul. Start of underwriting of long-term (2-5 years)
earthquake insurance

1991

Apr. Revision of earthquake insurance system (revision •Japan Meteorologicalof premium rates, introduction of partly destroyed Agency (JMA) starts
using seismometers
category)(world first)•1991 Mt. Unzen
Fugendake Volcanic
Eruption

1983

1993

•1993 Southwest-Off
Hokkaido
Earthquake (M7.8)

1994

May UN World Conference on Disaster Risk Reduction
in Yokohama (Chairman of General Insurance
Association of Japan gave lecture entitled
Role of Non-life Insurance for Natural Disaster
Management)
Jun. Revision of earthquake insurance system (revisionof total amount of approved claims)
1.5 trillion yen –› 1.8 trillion yen•1994 East
Off Hokkaido
Earthquake (M8.2)•1994 Far Off
Sanriku Earthquake(M7.6)

1995

Jan. Introduction of earthquake insurance midway
addition
Oct. Revision of earthquake insurance system (revisionof total amount of approved claims)
1.8 trillion yen –› 3.1 trillion yen•1995 Southern•Enactment of Law
Hyogo Prefectureon Special Measuresconcerning Earthquake Earthquake (M7.3)(Great Hanshin-Awaji
Disaster Management
Earthquake)•Establishment ofDisaster Management
and Volunteer Day•Establishment of the
Headquarters For
Earthquake Research
Promotion

Japan Earthquake Reinsurance Co., Ltd. Annual Report 2016

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Year

Month

Earthquake insurance/JER developments

Jan. Revision of earthquake insurance system (revisionof premium rates, etc.)
Jul. Relocation of JER to Chuo Ward, Tokyo

1997

Apr. Revision of earthquake insurance system (revisionof total amount of approved claims)
3.1 trillion yen –› 3.7 trillion yen

1998•Establishment ofOct. Promulgation and enactment of Ministerial
Ordinance Concerning Payment by Rough Estimate Financial Supervisory
Agencyof Reinsurance Claims Relating to Earthquake•Revision andInsurance
promulgation of
Insurance Business Act•Enactment of Law
on Support for
Reconstructing
Livelihoods of Disaster
Victims

1999

Apr. Revision of earthquake insurance system (revisionof total amount of approved claims)
3.7 trillion yen –› 4.1 trillion yen•Establishment of
Financial Services
Agency•Enactment of Housing
Quality Assurance Law•2000 Usuzan
Volcanic Eruption•2000 Western
Tottori Earthquake(M7.3)•2001 Geiyo
Eartquake (M6.7)

2001

Sep. Establishment of JER website
Oct. Revision of earthquake insurance system (revisionof premium rates, introduction of discountsystem)•Okurasho (Finance
Ministry) was renamed
Zaimusho (Ministry of
Finance).
•Establishment of
Cabinet Office•Start of insurance
sales by banks, etc.
•Liberalization of nonlife insurance agency
system•First round ofreorganization andconsolidation of
non-life insurancecompanies begins

2002

Apr. Revision of earthquake insurance system (revisionof total amount of approved claims)
4.1 trillion yen –› 4.5 trillion yen•Establishment ofGeneral Insurance
Rating Organization ofJapan•Enactment of
Law on Special
Measures concerning
Advancement ofCountermeasuresagainst Disasters ofTonankai and Nankai
Earthquakes

Japan Earthquake Reinsurance Co., Ltd. Annual Report 2016

Major earthquakes
or volcanic eruptions•Enactment of New
Insurance Business Act•Conclusion of U.S.Japan Insurance
Agreements•Revision of earthquake
intensity scale by JMA(0-10)

1996

2000

10

Major events

Year

Month

Earthquake insurance/JER developments

Major events

Major earthquakes
or volcanic eruptions

2003

Apr. Start of examination of issues relating to theunderwriting of earthquake insurance as a resultof “Tokai Earthquake Cautionary Information”
and “Convocation of Earthquake Assessment
Committee” issued by JMA•Start of provision of
volcano information
with JMA volcanic
activity level•Off Miyagi
Prefecture
Earthquake (M7.1)•Northern Miyagi
Prefecture
Earthquake (M6.4)•2003 Off-Tokachi
Earthquake (M8.0)

2004

Sep. Start of discussions for review of Special Accountfor Earthquake Reinsurance•Enactment of
Law on Special
Measures concerning
Advancement ofCountermeasuresagainst Earthquake
Disaster in Relation
to Subduction Zone
Earthquake Around
Japan Trench andChishima Trench•JMA starts applying
new information
related to Tokai
Earthquake.

•2004 Mid Niigata
Prefecture
Earthquake (M6.8)

2005•10 years after theJan. Public forum (earthquake insurance radio forum)
Great Hanshin-Awaji
held at UN World Conference on Disaster Risk
Earthquake
Reduction in Kobe
Apr. Revision of earthquake insurance system (revision •Business improvementof total amount of approved claims, establishment orders are issued to
non-life insuranceof standard premium rates using long-term
companies found tocoefficients)
have made omissions
4.5 trillion yen –› 5.0 trillion yen
in the payment ofclaims.

•West Off Fukuoka
Earthquake (M7.0)•West Off Fukuoka
Earthquake (M5.8)

2006

Mar. Number of earthquake insurance policies tops 10
million (10.24 million)

2007

Jan. Implementation of earthquake insurance premium
deduction system
Oct. Revision of earthquake insurance system (revisionof premium rates, etc.)•Administrative action,
including businesssuspension orders,taken against non-life
insurance companies
found to have
improperly paid or not
paid claims related tothird-party insurance
products.
•Ban on insurance sales
by banks lifted acrossthe-board.
•JMA starts generalprovision of early
earthquake warnings.
•JMA starts groundmotion warnings andvolcanic phenomenon
warnings, andintroduces volcanic
eruption warninglevels.

•2007 Noto Peninsula
Earthquake (M6.9)•2007 Niigata
Prefecture Chuetsu
Offshore Earthquake(6.8)

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Year

12

Month

Earthquake insurance/JER developments

Major events

Major earthquakes
or volcanic eruptions

2008

Apr. Revision of earthquake insurance system (revisionof total amount of approved claims)
5 trillion yen –› 5.5 trillion yen– Development of our system platform and complete
revamp of the system•2008 Iwate-Miyagi
Inland Earthquake(M7.2)•Earthquake in the
Northern Coast of
Iwate Prefecture(M6.8)

2009

Apr. Revision of earthquake insurance system (revisionof amounts of liability borne by public and private
sectors)•Suruga Bay
Earthquake (M6.5)

2010

Jan. Revision of earthquake insurance system (revision •Enactment ofof building structure categories for premium rates) Insurance Law•Second round ofOct. Special Account for Earthquake Reinsurance isreorganization andincluded in the budget screening of the Cabinet
consolidation of
Office’s Government Revitalization Unit
non-life insurancecompanies begins.
•Establishment ofGeneral insuranceCounseling and ADR
Center in the General
Insurance Associationof Japan

2011

Jan. Working Group for Summary of Issues Concerning
Special Account for Earthquake Reinsurance isestablished in the Ministry of Finance, and JER
takes parts as an observer.
Apr. The Government, the non-life insurance industry
and JER decide to implement payment by roughestimate of earthquake reinsurance claims.
May Revision of earthquake insurance system (publicprivate reinsurance scheme is revised throughenactment of FY2011 1st revised budget.)Nov. Working Group for Summary of Issues Concerning
Special Account for Earthquake Reinsurance
reports Summary of Issues Concerning Special
Account for Earthquake Reinsurance to theGovernment Revitalization Unit.

2012

Jan. Basic Policy on Special Account Reform (approvedby cabinet on January 24, 2012) concludes that
the Earthquake Reinsurance Special account willcontinue to exist.
Feb. GIAJ announces that total amount of approved
claims for the Great East Japan Earthquake
exceeded 1.2 trillion yen.
Mar. Earthquake insurance addition rate tops 50%(53.7%).
Mar. Number of earthquake insurance contracts tops
14 million (14.08 million).
Mar. JER installs its server at state-of-the-art data
center as BCP measures.

Japan Earthquake Reinsurance Co., Ltd. Annual Report 2016

•Enactment of Law on
Promotion of Tsunami
Countermeasures•Sanriku Offshore
Earthquake (M7.3)•2011 Tohoku-Pacific
Ocean Earthquake(M9.0) (TheGreat east Japan
Earthquake)•Northern Nagano
Prefecture
Earthquake (M6.7)•Eastern Shizuoka
Prefecture
Earthquake (M6.4)•Earthquake off
Miyagi Prefecture(M7.2)•Fukushima
Hamadoˉri
Earthquake (M7.0)•Central Nagano
Prefecture
Earthquake (M5.4)•Eruption at
Kirishima Volcano's
Shinmoedake Crater•Sanriku Offshore
Earthquake (M7.3)

Year

Month

Earthquake insurance/JER developments

Major events

Major earthquakes
or volcanic eruptions

Apr. Revision of earthquake insurance system (revisionof total amount of approved claims) 5.5 trillion
yen–›6.2 trillion yen
Apr. Earthquake Insurance System Project Teamestablished in Ministry of Finance, and JER
participates as observer.
Nov. Ministry of Finance publishes Earthquake
Insurance System Project Team Report.
2013

Mar. Complete revamp of our system in readiness forTokyo Inland Earthquake•Installation of backup system at Okinawa Data
Center•Development of remote access to enable
continuation of business even if head office isaffected by disaster
May Revision of earthquake insurance system (revisionof percentage of costs borne by public and private
sectors)
Nov. Ministry of Finance’s Earthquake Insurance
System Project Team holds follow-up meeting and
JER participates as observer.

•90 years since
the Great Kanto
earthquake•Enactment of Law
on Countermeasures
Against Tokyo Inland
Earthquake•Awaji Island
Earthquake (M6.3)

2014

Apr. Establishment of JER temporary office in Saitama
City as BCP measure.
Apr. Revision of earthquake insurance system (revisionof total amount of approved claims, etc.)
6.2 trillion yen –› 7 trillion yen
Jul. Revision of earthquake insurance system (revisionof premium rates, expansion of discount system)•50 years since Niigata
Earthquake•Iyonada Earthquake(M6.2)•Mount Ontake
Volcanic Eruption•Northern Nagano
Prefecture
Earthquake (M6.7)

2015

Mar. Public forum (earthquake insurance-related event)
held at UN World Conference on Disaster Risk
Reduction in Sendai
Jun. Publication of summary of conclusions of followup meeting Ministry of Finance’s Earthquake
Insurance System Project Team•20 years since theGreat Hanshin-Awaji
Earthquake•Eruption
occurred on
Kuchinoerabujima
Island•Earthquake West Off
Ogasawara Islands(M8.1)•Earthquake in
the South of Oita
Prefecture (M5.7)

2016

Apr. Revision of earthquake insurance system (revisionof total amount of approved claims, etc.)
7 trillion yen –› 11.3 trillion yen
May 50th anniversary of the establishment of JER
Jun. 50th anniversary of the launch of the earthquake
insurance system•5 years since the Great
East Japan Earthquake•2016 Kumamoto
Earthquakes (M6.5,
M7.3)* Details of major earthquake and volcanic eruptions are produced by JER based on data published on the JMA website.

Japan Earthquake Reinsurance Co., Ltd. Annual Report 201613