Increase in life insurers’ premium rates
Nippon Life Insurance is the first insurer to announce the rise of the premium rates for its savings insurance contracts. Increases range between 2% and 30% according to the kind of contract, age and gender of policyholder. More substantial increases have been applied when the obtained compensation comes in lump sum.
Many other life insurers have followed in the footsteps of Nippon Life. These adjustments come as a result to the reduction of the base rate that is used as a benchmark for the calculation of the remuneration pledged to the insured. The reduction recommended by the supervisory authorities which will go from 1% down to 0.25% will compel customers to pay more in order to obtain the same return.
Several insurers have deemed it more convenient not to market life insurance policies on the lump sum basis.
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