Nonlife firms to slash premiums in Japan

Major nonlife insurance firms plan to cut premiums on their voluntary motor insurance products by two to three percent on average in January.

The companies see improved profitability in their auto insurance operations as the number of traffic accidents decreases amid improving vehicle safety technologies, according to a report in the Japan Times.

Mitsui Sumitomo Insurance Co. and Aioi Nissay Dowa Insurance Co. are expected to slash their premiums by around three percent on average. The units of MS&AD Insurance Group Holdings Inc. reduced their premiums by one percent and 0.1 percent, respectively, in January 2017.

Tokio Marine & Nichido Fire Insurance Co., a unit of Tokio Marine Holdings Inc., plans to lower its premiums by 2.8 percent on average, its first markdown since August 2003.

Sompo Japan Nipponkoa Insurance Inc. is considering lowering its premiums by two percent on average, its first cut since a 0.2 percent reduction in October 2015.