This paper discusses the current status and future prospects of the residential earthquake insurance system in Japan. For about 40 years since its inception in 1966, the system has undergone many improvements based on lessons learned from past earthquakes: including the premium discounts taking into account the seismicresistance of buildings which were introduced after the 1995 Hyogoken-Nanbu Earthquake, the most challenging event the system has ever faced. Studies are also being conducted to establish a system that allows the insurance rates to be scientifically and effectively determined depending on risks. Earthquake insurances are expected to play a greater role in withstanding social and economic losses due to large seismic events that are predicted to occur in the future.
