Japanese earthquake insurance premiums will rise an average of 15.5% in July, according to AM Best.

Household premium rates will increase 30% in some prefectures, for buildings not resistant to fire, while the discount rate for quake-resistant homes will grow to 30-50% from 20-30%.

The total number of earthquake insurance policies increased 5.7% to 15.5 million at October last year, according to the General Insurance Rating Organisation of Japan.

Quake insurance for residential property is bought on top of fire policies, with standard policies excluding losses related to volcanic eruptions, tsunamis or quakes.

Non-life insurers, the Government and the Japan Earthquake Reinsurance Co (JER) share liabilities under the nation’s reinsurance scheme.

The total payment cap for insurance claims from a single quake is ¥6.2 trillion ($67 billion), up from ¥5.5 trillion ($59 billion) in April 2008, according to JER’s 2013 annual report.

In March 2011 the Tohoku earthquake led to 764,792 household claims with total payments of ¥1.2 trillion ($13 billion), according to JER.