Cooperative Insurance as a Mitigation Device against Natural Disaster - Zenrosai’s Natural Disaster Insurance By Katsuhiro Sampa, Zenrosai AOA Seminar Colombo, Sri Lanka. August 2014

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

3. 3
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

4. 4
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

5. 5
“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）

6. 6
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 Actof 2004 （Up to 3 JPY million for Complete Destruction） ■Revised Actof 2007（Conditions for Purpose, Age, Annual Salary Removed）
２．（１）Popular Movement for Establishing a Social Security System

7. 7
２．（２）Development of Natural Disaster Insurance
＜Launch＞
Started to Sell in 2000
＜Overview & Characteristics ①＞
Collateral Contractto 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.

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

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

10. 10
※Natural Disaster after the Launch of Natural Disaster Insurance （until. 2010）
Year & Month
Event
Claim Paid
Num.
JPY billion
2004
Jun to Nov
9-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

11. 11
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）

12. 12
＜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

13. 13
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）

14. Thank you