Japan - Insurance Market by Type and Channel - Forecast and Analysis 2023-2027

Japan Insurance Market Forecast 2023-2027 

The Japan insurance market size is forecast to increase by USD 54.7 billion, at a CAGR of 3.12% between 2022 and 2027. The growth of the market depends on several factors such as the growing geriatric population in Japan, the fear of natural disasters, and the high focus on short-term insurance.

It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the size of the Japan Insurance Market During the Forecast Period?

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Japan Insurance Market Dynamics and Competitive Landscape

Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

One of the key factors driving the market growth is the high focus on short-term insurance. The main purpose of this is that it enables individuals and businesses to obtain coverage for events including travel, special occasions, exhibitions, and short-term projects. the country of Japan is more prone to different types of risks including natural disasters, health emergencies, and business interruptions.

Moreover, there is an increasing preference for this offers focused coverage for this broad range of risks. As a result, there is an increasing focus on these companies to target marketing efforts around specific events and seasons, generating opportunities to engage with potential customers when they have a heightened need for coverage. Hence, such factors are positively impacting the market. Therefore it is expected to drive the market growth during the forecast period.

Key Market Trends

A key factor shaping the market growth is the increasing demand for automotive insurance. It is mandatory in Japan that all vehicle owners must have liability to cover potential damages or injuries caused to third parties. Additionally, there is an increasing chance of accidents and collisions, especially in urban areas due to high traffic congestion in Japan.

Moreover, as a result, there is an increasing demand for comprehensive coverage by vehicle owners to protect their assets and cover potential repair costs. Furthermore, there is an increasing adoption of the Internet of Things (IoT), and data analysis by these companies which helps in providing personalized offerings to customers. Hence, such factors are positively impacting the market. Therefore it is expected to drive the market growth during the forecast period.

Key Market Challenge

Vulnerability toward cybercrime is one of the key challenges hindering market growth. There is a rise in digitization across the world to avail various benefits including better-organized data, easy availability of data, multi-screen/multi-device access, efficient handling of client data, and ease of management. Furthermore, there is an increasing adoption of online and on-device data storage fuelled by the advancements in technology.

Moreover, the dependency of industries on technology such as processing systems, online data, and electronic communications, for ease of business and management is increasing. As a result of this advancement in technology, it is more prone to data breaches and cyber crimes. Some of the key impacts of cyber attacks on these companies include the misappropriation of data on devices or the cloud and the selling of clients' confidential information to competitors. Hence, such factors can negatively impact the market which in turn will hinder the market growth during the forecast period.

Market Customer Landscape

The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

 Market Customer Landscape

Who are the Major Japan insurance market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Allianz SE: The company offers Accident Insurance, Cancer Insurance, Critical Illness Insurance, Final Expense Insurance, and Pet Insurance.

The research report also includes detailed analyses of the competitive landscape of the market and information about 13 market companies, including:

• Asahi Mutual Life Insurance Co.
• Dai ichi Life Holdings Inc.
• Mitsubishi HC Capital Inc.
• MS and AD Insurance Group Holdings Inc.
• Nippon Life Insurance Co.
• Sompo Holdings Inc.
• Sumitomo Life Insurance Co.
• The Toa Reinsurance Co. Ltd.
• Zurich Insurance Co. Ltd.
• AFLAC Inc.
• Lifenet Insurance Co. Ltd.
• Meiji Yasuda Life Insurance Co.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

What is the Largest-Growing Segments in the market?

The life segment is estimated to witness significant growth during the forecast period. One of the largest segments in the market is the life segment with 90% of the population having life this. Factors such as the low rate of interest charged by customers for life insurance are significantly fuelling the growth of the segment.

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The life segment was the largest segment and was valued at USD 225.33 billion in 2017. There is a large percentage of the geriatric population around 36.4 million over the age of 65 years implying a larger life expectancy in the country which enables these companies to offer life insurance at lower interest rates. Additionally, several organizations in Japan provide this as part of their employee benefits package.  As a result, it has fuelled the adoption of life insurance coverage among the working population. Furthermore, there is an increasing focus on responsibility toward family and loved ones in Japanese culture which fuels the demand for this as a means of providing financial protection to one family in case of unexpected events.  Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the market growth and trends opportunities from 2017 to 2027. 

•  Type Outlook (USD Billion, 2017 - 2027)
  • Life
  • Non-life
• Channel Outlook (USD Billion, 2017 - 2027)
  • Sales personnel
  • Insurance agencies

Research Analyst Overview

The Japan insurance market comprises various distribution channels, including direct sales, agencies, banks, and other channels. It covers both Property and Casualty (P&C) insurance, with metrics such as annualized premiums, new policies, and policies in force indicating market activity. Individual insurance, including annuities, is a significant segment, with direct premiums and net claims paid being key financial indicators.

Recent trends show an increase in the number of individual insurance policies and policies in force. Automotive insurance, particularly compulsory automobile liability insurance, dominates the market. Telematics plays a role in the non-life segment, impacting premiums and policyholders. Major players compete for market share, with strategies focused on product offerings and customer service. The market also reacts to natural disasters such as earthquakes.

The Japanese general insurance industry continues to evolve amidst shifting trends. Automobile sales and vehicle registrations drive demand for motor insurance, especially with the rising popularity of electric vehicle (EV) sales. Infrastructure projects fuel growth, though nat cat events like the Khanun typhoon underscore the importance of policies covering natural catastrophic events. Cyberattacks, including ransomware attacks, pose new challenges, prompting insurers to innovate financial lines products. Liability insurance gains prominence amidst concerns over cybersecurity and property insurance needs. Despite scandals and alleged cartel activities, non-life carriers like Sompo Japan navigate complexities, driven by product developments and compound annual growth rate (CAGR) aspirations. The Economic and Social Research Institute of Japan monitors gross written premiums (GWP), reflecting general insurance penetration in APAC economies amid diverse risks in marine aviation and transit insurance and miscellaneous insurance sectors. 

Japan Insurance Market Scope
Report Coverage	Details
Page number	118
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 3.12%
Market growth 2023-2027	USD 54.7 billion
Market structure	Concentrated
YoY growth 2022-2023(%)	2.76
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Allianz SE, Asahi Mutual Life Insurance Co., Dai ichi Life Holdings Inc., Mitsubishi HC Capital Inc., MS and AD Insurance Group Holdings Inc., Nippon Life Insurance Co., Sompo Holdings Inc., Sumitomo Life Insurance Co., The Toa Reinsurance Co. Ltd., Zurich Insurance Co. Ltd., AFLAC Inc., Lifenet Insurance Co. Ltd., and Meiji Yasuda Life Insurance Co.
Market dynamics	Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the Japan insurance market size and its contribution to the parent market
• Accurate predictions about upcoming Japan insurance market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the Japan insurance market’s competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market vendors

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