TOKYO — Sompo Japan Insurance Inc will subdivide age brackets for auto insurance premiums in April to hike premium rates for elderly drivers. Sources familiar with the matter said Sompo will be the first major Japanese nonlife insurer to hike the premium rates to cope with worsening accident rates among elderly drivers. While hiking its auto insurance premiums by an average 1.5%, Sompo Japan plans to raise them for drivers aged 70 or older by up to more than 8%, they said.
Nonlife insurers have been cutting costs to absorb increased insurance payments caused by worsening accident rates among elderly drivers, but are now going to hike the premiums as profitability in the auto insurance business has deteriorated amid the aging of the society. Among other insurers, Tokio Marine & Nichido Fire Insurance Co and Mitsui Sumitomo Insurance Co may also introduce new age brackets for auto insurances—in July and fiscal 2011, respectively, to raise premiums for elderly drivers.
