cooperative insurance as a mitigation device against natural disaster
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Cooperative Insurance as a Mitigation Device against Natural Disaster - Zenrosai’s Natural Disaster Insurance By Katsuhiro Sampa, Zenrosai AOA Seminar Colombo, Sri Lanka. August 2014TRANSCRIPT
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
2
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
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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
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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
to Support Social Security
and to Enhance Self-Help
Social Security
Mutual Help
Self-Help
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“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)
２．（１） Popular Movement for Establishing
a Social Security System
Act Concerning Support for Rebuilding
Livelihoods of Disaster Victims （May,1998）
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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）
２．（１） Popular Movement for Establishing
a Social Security System
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２．（２） Development of Natural Disaster Insurance
＜Launch＞
Started to Sell in 2000
＜Overview & Characteristics ①＞
Collateral Contract to Fire Insurance
Ｒｅｆ：Fire Insurance & EQ Insurance of Non-Life Insurers
Fire Insurance（For Fires）
Natural Disaster Insurance（For Storms & Floods, EQ, Theft）
Fire Insurance（For Fires, Storms & Floods, Theft）
EQ Insurance（For EQ）
※Reinsured by Gov.
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＜ Overview & Characteristics ②＞
Uniform Premium・Two Structures （Wooden 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
２．（２） Development of Natural Disaster Insurance
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＜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
２．（２） Development of Natural Disaster Insurance
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※Natural Disaster after the Launch of
Natural Disaster Insurance （until. 2010）
Year &
MonthEvent
Claim Paid
Num.JPY
billion
2004
Jun to
Nov9-Typhoon （Inc. tornados & Gust) 16,700 7.9
July Cloudburst in Niigata & Fukui 360 1.0
Oct Niigata Prefecture Chuetsu Earthquake
(M6.8)
3,200 1.7
2005
Mar Off West Fukuoka Earthquake (M5.1) 820 0.2
Sep Typhoon Nabi （Kyushu） 3,400 1.8
Dec Heavy Snowfall （Tohoku） 3,300 1.1
2006 Sep Typhoon Shanshan （Northen Kyushu） 3,900 1.4
2007 July Niigataken Chuetsu-oki Earthquake (M6.8) 2,800 1.9
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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）
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＜Future Challenges＞
Business Continuity Planning for a Major
Disaster
Damage Investigation for a Major Disaster
Stable Risk Management of the Scheme
３． Great East Japan Earthquake of 2011
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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 ofStructures Classification, e.g. Exclusive Plan for
Apartments）
Thank you