It has come to light that Sompo Japan will raise auto insurance premiums by an average of about 5% starting in January 2027. The hike comes just months after a roughly 1.8% increase this past July, and is reportedly driven by rising insurance payouts amid soaring repair costs.
On the thread, complaints centered less on the price hike itself and more on Sompo Japan’s ties to Bigmotor and its reputation for stingy claim payouts, along with first-hand posts urging people to add a lawyer rider to their policy.
Published 8/24 (Mon) 18:37
Kyodo News
It was learned on the 24th that major non-life insurer Sompo Japan will raise auto insurance premiums by an average of about 5% starting in January 2027. The company raised rates by an average of about 1.8% this past July, but is moving to hike them further as rising repair costs push up insurance payouts.
Source: news.yahoo.co.jp / Original article here
turns out insurance is just feeding the sales reps……
Insurance might be the poster child for commission-based pay.
No wonder insurance companies are hated.
Accountability is supposed to be enforced by the government —
guess the amakudari (retired bureaucrats parachuted into cushy industry jobs) network did its job lol
Accidents have been declining this whole time, yet repair costs kept climbing in this weirdly unnatural way.
To avoid getting ripped off by repair shops, getting a dealer estimate is a must.
Weird that so many people still sign up despite the bad reputation.
It's the sheer size of the Fuyo Group (a major Japanese business conglomerate).
https://greta.5ch.io/test/read.cgi/poverty/1787587265/
They've got reinsurance, right?
Probably less about the money and more that the processing costs from staff handling all the claims are getting out of hand.
Anyone who signed up with Sompo Japan, notorious for being nasty to deal with, only has themselves to blame.
Serves them right.
At my renewal this year they already told me next year's rate is set to go up.
Honestly, no matter how accident-free you are, it's not going down from here.
No wonder people stop signing up.
That's a separate issue.
If you're not getting optional car insurance, don't drive.
It's a nightmare for anyone who gets caught up in an accident with you.
That's how tough the negotiations get.
I'm bracing myself for it to take years.
Why bother with a lawyer rider? Because 0:10 fault-ratio cases are a hassle?
If you're 100% not at fault (対物100%), isn't that enough on its own?
There are cases where treatment gets forcibly cut off before you're even healed.
Plus it lets you claim damages at the higher court-standard rate, so it's definitely worth having.
Insurers have internal payout standards, and the amount goes up once a lawyer gets involved or it heads to court.
So there's no downside to having the rider.
*This article is compiled from excerpts and a summary of the 5ch (Breaking News+) thread “[Sompo Japan] Auto Insurance Premiums Up 5%, January 2027.”
Leave a Reply