Insurance Post

Quake reinsurance to rise

The Japanese government is planning to raise its limit for earthquake reinsurance payments by 11.11% to Y5trn from the fiscal year 2005 to better prepare for a large-scale disaster.Under the current earthquake reinsurance system, if the fund that insurers hold in reserve to cover potential earthquake damage claims is insufficient, the government will share the payout burden.It will be the first limit increase in three years. The move was driven by public concern after recent earthquakes that