Cooperative Insurance as a Mitigation Device against Natural - PowerPoint PPT Presentation

Cooperative Insurance as a Mitigation Device against Natural Disaster ～ Zenrosai’s Natural Disaster Insurance ～ AOA Seminar August 25~ ２７ , 2014 Katsuhiro Sampa Non-life Insurance Section Product Development Department Zenrosai

Zenrosai’s Natural Disaster Insurance １． Great Hanshin Earthquake of 1995 ２． Towards Protection against Natural Disasters （１） Popular Movement for Establishing a Social Security System （２） Development of Natural Disaster Insurance ３． Great East Japan Earthquake of 2011 ４． Future Approach Considering Apparent Problems 2

１． Great Hanshin Earthquake  July 17, 1995 Epicenter - Southern Part of Hyogo Prefecture  Over 6,400 Dead, 40,000 Injured  More than 390,000 Houses Damaged A Total of 3,672 Staff Members Visited Policyholders and Investigated Damages (over about a 3-month period ）  Number of Claim Payments: 93,958  Value of Claims Paid: 18,539 JPY million 3

２． Towards Protection against Natural Disasters  Action Plan of fiscal 1995, Based on the Experience of the Great Hanshin Earthquake ＜ Approach Plan ＞ （１） Establish a Social Security System as Basic Coverage for Natural Disasters （２） Development of Insurance Scheme Self-Help to Support Social Security Mutual Help and to Enhance Self-Help Social Security 4

２．（１） Popular Movement for Establishing a Social Security System  “ National Congress toward Social Protection against Natural Disasters” Established by 6 organisations （ July,1996 ） - Zenrosai Group, Hyogo Pre, Rengo, JCCU, and JPC-SED  Petition by 24 million Individuals and 43,000 Group Bodies Put to the Prime Minister (Feb,1997) Act Concerning Support for Rebuilding Livelihoods of Disaster Victims （ May,1998 ） 5

２．（１） Popular Movement for Establishing a Social Security System  Overview of the Act （ 1998 ）  Up to 1 JPY million for Complete Destruction  Amount Depends on Conditions such as Age, Annual Salary etc.  Must be used for Fixed Purposes Continued Effort for Further Enhancement of the Act  Revised Act of 2004 （ Up to 3 JPY million for Complete Destruction ） ■ Revised Act of 2007 （ Conditions for Purpose, Age, Annual Salary Removed ） 6

２．（２） Development of Natural Disaster Insurance ＜ Launch ＞  Started to Sell in 2000 ＜ Overview & Characteristics ①＞  Collateral Contract to Fire Insurance Fire Insurance Natural Disaster Insurance （ For Fires ） （ For Storms & Floods, EQ, Theft ） Ｒｅｆ： Fire Insurance & EQ Insurance of Non-Life Insurers Fire Insurance EQ Insurance （ For EQ ） （ For Fires, Storms & Floods, Theft ） ※ Reinsured by Gov. 7

２．（２） Development of Natural Disaster Insurance ＜ Overview & Characteristics ②＞  Uniform Premium ・ Two Structures （ W ooden or Fire-Resistant Construction ）  Coverage Level  Storm & Flood Damages: 50 ％ of Fire Insurance  EQ Damages: １７％ of Fire Insurance ※ Insured Amount is determined by Damage Level  Use of Reinsurance, Total Limit of Claim Payment 8

２．（２） Development of Natural Disaster Insurance ＜ Revision in 2005 ＞  Coverage Level Increased to 20 ％ of Fire Insurance ＜ Revision in 2010 ＞  Larger-Type Coverage  Storm & Flood Damages: 50 ％ of Fire Insurance  EQ Damages: 30 ％ of Fire Insurance 9

※ Natural Disaster after the Launch of Natural Disaster Insurance （ until. 2010 ） Claim Paid Year & Event JPY Month Num. billion Jun to 9-Typhoon （ Inc. tornados & Gust) 16,700 7.9 Nov July Cloudburst in Niigata & Fukui 360 1.0 2004 Oct Niigata Prefecture Chuetsu Earthquake 3,200 1.7 ( M6.8) Mar Off West Fukuoka Earthquake (M5.1) 820 0.2 Typhoon Nabi （ Kyushu ） Sep 3,400 1.8 2005 Heavy Snowfall （ Tohoku ） Dec 3,300 1.1 Typhoon Shanshan （ Northen Kyushu ） 2006 Sep 3,900 1.4 2007 July Niigataken Chuetsu-oki Earthquake (M6.8) 2,800 1.9 10

３． Great East Japan Earthquake of 2011  Afternoon, March 11, 2011  15,900 Dead, 3,300 Missing  Over 370,000 Houses Damaged A Total of 35,685 Staff Members Visited Policyholders and Investigated Damages (over about a 3-year period ）  Number of Claim Payments: 344,231  Value of Claims Paid: 125.7 JPY billion （ As of end of May ） 11

３． Great East Japan Earthquake of 2011 ＜ Future Challenges ＞  Business Continuity Planning for a Major Disaster  Damage Investigation for a Major Disaster  Stable Risk Management of the Scheme 12

４． Revision of Natural Disaster Insurance ＜ Main Points in Revision ＞  Increase Total Limit & Premium in order to fulfill Responsibility of Payment  Add large-scale Partial Destruction to the Damage Classification of EQ Cover （ Coincides with Act Concerning Support for Rebuilding Livelihoods of Disaster Victims ）  Revised to Fire Insurance （ Renewal of Structures Classification, e.g. Exclusive Plan for Apartments ） 13

Thank you