Contents:

1. Executive summary 1.1 Introduction 1.2 Key points 1.3 Conclusion 2. Insurance requirements for security 3. Japanese new car market 3.1 Overview 4. Car theft in Japan 4.1 Theft situation by car types 4.2 Theft rates 4.3 Theft from vehicles 5. Car insurance system in Japan 5.1 Overview 5.2 Discount for car security 5.3 Comparison of insurance cost List of tables Table 1. Theft rate for models with theft of >1,000 units per year Table 2. Theft rate for models with theft < 1000 (but 1,000 or more in 2003) Table 3. Comparison of insurance costs of vehicles from the same brand Table 4. Comparison of relative insurance cost of Toyota and Nissan vehicles List of figures Figure 1. New car sales volume from 2000 to 2006 Figure 2. Car share in Japan in 2006 Figure 3. Theft situation by vehicle type 2003 to 2006 Figure 4. Breakdown of stolen items by year Figure 5. Japanese system of car insurance

Summary:

New security report analyses Japanese vehicle crime levels and insurance industry requirements - Analysis of vehicle crime trends - Insight into structure, costs and requirements of Japanese car insurance - Assessment of factors impacting on manufacturer decisions to provide improved security features. “Car Theft and Insurance in Japan” scrutinises levels of vehicle crime in Japan and their impact on the domestic insurance industry. Using both historic and up-to-the-minute data and assessing the latest developments within the Japanese insurance industry, it demonstrates how the fitment of vehicle security systems is having an impact on car theft, but not on insurance costs. The report shows how car crime has dropped since 2004, after the Japanese insurance industry requested vehicle manufacturers to provide better security features. However, the report shows how voluntary improvements, such as the provision of electronic immobilisers on luxury models, have seen theft rates increase on other vehicle types. It also reveals there are few incentives in terms of insurance discounts, in a system where vehicle repair costs have the greatest influence on calculating premiums and there are no financial benefits for buying better protected models. David Bell, SBD Managing Director, said: “In Europe there is a strong link between car theft and the cost of car insurance. Manufacturers are obliged to fit immobilisers and premiums are lower for vehicles that offer better security. Our report reveals the very different situation in Japan, where there is little benefit to the car maker or the motorist from more sophisticated anti-theft measures when it comes to the cost of insurance. “However, we believe the Japanese insurance industry is looking to change this situation, and vehicle manufacturers should consider security improvements for Japanese vehicles now, if they want to stay ahead of their competitors, and the car thieves.” The report also warns that the decline in Japanese car crime figures could be threatened by the spread of more sophisticated theft methods developed in Europe to counter electronic security systems. After conducting global research, to assist in the reduction of car theft, Japanese insurers have developed their own assessment scheme. Trial assessments have been made and the results discussed with Japanese vehicle manufacturers. It is expected that after further trials, a rating scheme will be produced, and the results published to increase public awareness of high security and low security vehicles. Additionally, insurers are currently researching other ways to improve security performance, such as the benefits of vehicle identification and stolen vehicle tracking.