Catastrophic Contingency Reserve

Japanese: 異常危険準備金

When the risks covered by non-life insurance companies occur regularly, it is sufficient to set aside only ordinary liability reserves, but in reality, the probability of risk occurrence is extremely irregular, and in the event of an extraordinary disaster such as a typhoon, earthquake, or large fire, it may be necessary to pay huge insurance claims that cannot be covered by ordinary liability reserves alone. In preparation for such huge payments, non-life insurance companies set aside a certain percentage of income premiums for each type of insurance as one of the liability reserves at each accounting period.

Source: Minna no Seiho Hoken Advisor: Information on the Basic Insurance Glossary

Japanese:

損害保険会社の担保する危険が規則的に発生するときは、普通責任準備金の積立のみで十分ですが、実際には危険発生の確率はきわめて不規則であり、台風、地震、大火等による異常災害が発生した場合には、普通責任準備金のみでは負担しきれないような巨額な保険金の支払を要すことがあります。このような巨額な支払に備えて損害保険会社が、毎決算期に保険種類ごとに収入保険料の一定割合を責任準備金の1つとして積立てるものです。

出典　みんなの生命保険アドバイザー保険基礎用語集について　情報

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