Sompo Japan Insurance will raise auto insurance premiums by an average of approximately 5% from January 2027, following an average increase of about 1.8% implemented in July. Company sources said repair costs per vehicle rose 7.9% year on year in the April-June 2026 quarter, driven by inflation and higher labor costs. The company’s auto insurance business is projected to post a full-year loss for fiscal 2027 ending March 2027, making the rate increase part of an effort to improve profitability. Tokio Marine & Nichido Fire Insurance plans an average increase of approximately 6.5% in October 2026, as premium revisions spread across Japan’s non-life insurance industry. Vehicle electrification and more advanced safety equipment mean even minor accidents can require replacement of costly sensors and cameras. Insurers are also pursuing structural reforms, including mileage-based insurance and accident-prevention measures using telematics (technology that monitors vehicle use and driving data). The increase is expected to apply to new and renewal policies, potentially adding several thousand yen a year to each policyholder’s burden. Insurers consider the measures necessary to sustain their auto insurance businesses, although the impact on household budgets remains a concern.