New system for the assessment of flood risk in Japan

The non-life insurer Rakuten General Insurance is implementing a new system that calculates flood insurance premiums based on the probability of risk occurrence for each insured.

This new cover will come into effect in April 2020 and could quickly spread to other local insurers.

The proposed offer is included in the fire insurance policy underwritten by the insured for his home.Rakuten General Insurance has identified four categories of flood risk namely A, B, C or D.

Category A is the least exposed to flood risk (houses located on a hill). Category D, having the highest risk , applies to residences along lowland river.

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