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Revision of Premiums Rates of Earthquake Insurance
on January 1, 2017 and Division of Loss Categories intoFour
Earthquake insurance has been revised as described below for policies the inception date ofwhich is on or after January 1, 2017. Outline of the revision is as follows.
1. Revision of insurance premiums
Insurance premiums have been raised 5.1% on national average in light of the renewal of theseismic source models to the 2014 version and the renewal of basic data in the Probabilistic
Seismic Hazard Maps (PSHM) by the Headquarters for Earthquake Research Promotion ofthe government.
2. Division of loss categories into four
Based on discussions (it is desirable to better reflect the reality of losses in the loss categories
while ensuring the promptness of loss assessment) at follow-up meetings of the Ministry of
Finance’s Earthquake Insurance System Project Team, the “half loss” in the loss categories
has been divided into two, namely “large half loss” and “small half loss.” As a result, the three
categories of total loss, half loss and partial loss have been divided into four categories of
total loss, large half loss, small half loss and partial loss.

Participation in Forum to Commemorate the 50th
Anniversary of the Earthquake Insurance System
On September 5, 2016, a forum to commemorate the 50th anniversary of the earthquake
insurance system was held, sponsored by the General Insurance Association of Japan (GIAJ).
It sought to use the 50th anniversary of the earthquake insurance system as an opportunity tolook back on the history of earthquake insurance and seek the further take up and promotionof earthquake insurance.
A panel discussion by experts followed the keynote speeches by the Ministry of Finance and theFinancial Services Agency. During the discussion, panelists noted that the role of earthquake
insurance in Japan, a country highly susceptible to earthquakes, is very significant and thatto further facilitate the take up of earthquake insurance, it is important for consumers tohave a correct understanding of the need and mechanism of earthquake insurance. At theconclusion of the forum, the determination that “non-life insurance companies and agentswill unite and make concerted efforts with the cooperation of the government to inform theearthquake risk and further facilitate the take up of earthquake insurance” was expressed.
JER also set up a special booth in the venue to introduce the reinsurance system and therole of JER, which support the earthquake insurance system, by putting up posters anddistributing a booklet, among other activities.

Japan Earthquake Reinsurance Co., Ltd. Annual Report 201711

Response to the 2016 Kumamoto Earthquakes
We offer our deepest sympathy to all those affected by the 2016 Kumamoto Earthquakes.
The non-life insurance industry was united in taking initiatives to promptly, steadily and fairly
make insurance payouts to support the reconstruction of the lives of policyholders affected bythese earthquakes and sought to support the victims and timely provide information, making
use of its experience in the Great East Japan Earthquake. As a result, 247,048 earthquake
insurance claims of 377.2 billion yen had been paid as of March 31, 2017.
Number and amount of earthquake insurance claims paid in
the 2016 Kumamoto Earthquakes
As of March 31, 2017: The figures below were gathered from boththe member and non-member insurance companies of GAIJ.
Number of inquiries(Note 1)

Number ofsettled cases(Note 2)

Number of claim
payments

Total amount ofclaims paid
(1,000 yen)

Fukuoka

24,11323,44017,18810,449,428

Saga

3,913

3,827

2,909

1,873,692

Nagasaki

1,002

982

671

389,377

Kumamoto

228,128

228,045

211,478

353,320,597

Oita

16,973

16,748

13,631

10,469,010

Miyazaki

702

681

481

342,933

Kagoshima

465

463

262

140,261

Other

760

742

428

302,371

Total

276,056

274,928

247,048377,287,669

Note 1:	The number of inquiries includes the number of cases where insurance companies received requests for damage investigations, inquiries about earthquake insurance coverage, and requests for advice on policyholder
contracts. The number includes inquiries for both buildings and contents.
2: The number of settled cases includes those cases where claims were paid as well as those where claims werewithdrawn as a result of investigations. It also includes cases that were resolved when insurance companies
received inquiries.

(Source: Partially extracted from the GIAJ website on May 9, 2017)* The number and amount of reinsurance claims paid in the 2016 Kumamoto Earthquakes posted in the Top 20 Earthquakes as to Reinsurance Clams Paid on page 26 are the number and amount of reinsurance claims paid by JER tonon-life insurance companies as of March 31, 2017 and therefore are not the same as the number and amount above.

12Japan Earthquake Reinsurance Co., Ltd. Annual Report 2017