Japan Property & Casualty Insurance Market Size
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| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 4.00 % |
| Market Concentration | Medium |
Major Players.webp "Japan Property & Casualty Insurance Market - Companies & Size (2)") *Disclaimer: Major Players sorted in no particular order |
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Japan Property & Casualty Insurance Market Analysis
The insurance market in Japan is one of the world's largest. Japan's property and casualty insurance market, at JPY 9 trillion in premiums, is the world's fourth-largest.
Japanese insurers have mobilized rapidly in response to the COVID-19 pandemic. The sudden decrease in interest rates and significant restrictions on people's movement are necessitating changes to product portfolios, distribution models, and business operations.
The three biggest Japanese P&C insurance businesses' COVID-19 pandemic-related losses for international business in 2020 were fully offset by strong profits from home business. To keep capitalization robust, MS&AD Insurance Group, Sompo Holdings, and Tokio Marine Holdings (TMH) are anticipated to maintain conservative capital management.
Japanese property and casualty insurers also have very strong sub-limits, which limit the amount of coverage available to cover a specific type of loss. As of November 2021, there are 54 private non-life insurance companies in Japan. There are 30 domestic insurance companies and 20 branches of foreign insurers, and the Society of Lloyd's (Lloyd's). Due to the falling birth rate and the aging population, the non-life insurance market is shrinking and becoming more competitive.
The domestic market is largely an oligopoly. The three largest insurers hold 85.6% of the market share, while foreign insurers hold only 8%. More non-insurance companies (largely financial services players) are entering the P&C market, which could significantly impact the dominant position of the top P&C insurers. The increase in damage from severe natural disasters in Japan is leading P&C insurers to redefine risk profiles using the most up-to-date technologies. Further, they will look to adopt advanced technologies to reduce the high cost and inefficiency of legacy systems and improve their operational agility.
Japan Property & Casualty Insurance Market Trends
This section covers the major market trends shaping the Japan Property & Casualty Insurance Market according to our research experts:
Status of Automobile Insurance in Japan
In Japan, automotive insurance (including mandatory automobile liability insurance) accounts for 60% of net premiums. Premiums are calculated using a "grading system" based on the accident histories of policyholders. Agencies dominate auto insurance sales. Direct sales are expanding at a rate of roughly 4%.
Motor insurance demand is expected to decline in the long run due to Japan's shrinking population and well-developed public transportation system. The development of autonomous driving technologies will likely expand the demand for product liability insurance, telematics automobile products, and cyber protection.
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Status of Property Insurance in Japan
Wind and flooding damage is also covered by fire insurance in Japan. In the fiscal year ending 31 March 2017, fire insurance accounted for 15% of total premium income, making it the second most profitable business line behind auto insurance. However, it is the least profitable of the primary lines of business and has been losing money on underwriting for many years. Japanese non-life insurers raised their fire insurance premiums for homes by a national average of 6 to 8% in January 2021. The premium hikes were made in response to a string of natural disasters, such as torrential rains in western Japan and Typhoon Jebi, which caused heavy damage to Kansai International Airport in 2018. Insurance premiums are expected to rise mainly in the disaster-hit western areas of the country. Some expect an increase of over 10%, depending on the location and building. Insurance payouts exceeded JPY 1 trillion in 2019 because many houses were damaged in disasters, including Typhoon Faxai.
Earthquake insurance is a type of insurance that covers only earthquake disasters. It covers damage caused by fire, destruction, burying, or washing away because of an earthquake or volcanic eruption, as well as a tsunami resulting from either of these events. Earthquake Insurance covers buildings for residential use as well as household valuables. It is attached to fire insurance. Namely, it is a prerequisite to carry fire insurance to carry Earthquake Insurance. Fire insurance policyholders without Earthquake Insurance can attach it midway through the policy period. The Earthquake Insurance, whose objective is to stabilize the livelihoods of those affected by earthquakes, is established with the government reinsuring massive earthquake damage, which exceeds a certain amount of liability that private insurance companies underwrite. The limit is JPY 11.7751 trillion. Combined with the liability sharing for private insurance companies, the limit on total payouts for a single earthquake, etc., sums to JPY 12 trillion.
Japan Property & Casualty Insurance Industry Overview
The report covers major international players operating in the Japanese property and casualty market. In terms of market share, few of the major players currently dominate the market. However, with technological advancement and product innovation, mid-size to smaller companies are increasing their market presence by securing new contracts and by tapping new markets.
Japan Property & Casualty Insurance Market Leaders
MS&AD Insurance Group Holdings, Inc
Tokio Marine & Nichido Fire Insurance Co., Ltd.
Sompo Holdings Inc.
Rakuten General Insurance Co., Ltd.
Nisshin Fire & Marine Insurance Co., Ltd.
*Disclaimer: Major Players sorted in no particular order
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Japan Property & Casualty Insurance Market News
July 2021 - Sompo International Holdings Ltd, a global, Bermuda-based specialty provider of property and casualty insurance and reinsurance, announced the launch of its Sompo Women in Insurance Management (SWIM) program, which aims to better prepare young women to assume future leadership roles at Sompo International. The initial program will begin in the United States in collaboration with High Point University located in High Point, North Carolina, to ultimately expand the program and approach to additional universities in the U.S. and internationally.
July 2021 - Sompo International Holdings Ltd announced that it's Commercial Property & Casualty (P&C) segment had expanded its global product capabilities with the formation of Sompo Global Risk Solutions (GRS) Asia-Pacific, a new team based in Singapore to serve select industries in the Asian markets through appointed brokers.
Japan Property & Casualty Insurance Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Deliverables and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Impact of COVID-19 on Industry
5. MARKET SEGMENTATION
5.1 Insurance Type
5.1.1 Property
5.1.2 Auto
5.1.3 Other Insurance Types
5.2 Distribution Channel
5.2.1 Direct
5.2.2 Agents
5.2.3 Banks
5.2.4 Other Distribution Channels
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Tokio Marine & Nichido Fire Insurance Co., Ltd.
6.2.2 Sompo Holdings Inc.
6.2.3 Rakuten General Insurance Co., Ltd
6.2.4 MS&AD Insurance Group Holdings, Inc.
6.2.5 SAISON Automobile & Fire Insurance Co., Ltd.
6.2.6 SECOM General Insurance Co., Ltd.
6.2.7 Hitachi Capital Insurance Corporation.
6.2.8 Nisshin Fire & Marine Insurance Co., Ltd.
6.2.9 Kyoei Fire & Marine Insurance Co.,Ltd
6.2.10 Mitsui Direct General Insurance Co. Ltd.*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
Japan Property & Casualty Insurance Industry Segmentation
Property and casualty insurance (also known as P&C insurance) are types of coverage that help protect you and your property. Casualty insurance means that the policy includes liability coverage to help protect you if you're found legally responsible for an accident that causes injuries to another person or damage to another person's belongings.
A complete background analysis of the Japanese property and casualty market includes an assessment of the parental market, emerging trends by segments, and regional markets. Significant changes in market dynamics and market overview are also covered in the report.
The Japanese Property and Casualty Insurance Market is segmented by Insurance Type (Property, Auto, and Other Insurance Types) and Distribution Channel (Direct, Agents, Banks, and Other Distribution Channels).
| Insurance Type | |
| Property | |
| Auto | |
| Other Insurance Types |
| Distribution Channel | |
| Direct | |
| Agents | |
| Banks | |
| Other Distribution Channels |
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Japan Property & Casualty Insurance Market Research FAQs
What is the current Japan Property & Casualty Insurance Market size?
The Japan Property & Casualty Insurance Market is projected to register a CAGR of greater than 4% during the forecast period (2024-2029)
Who are the key players in Japan Property & Casualty Insurance Market?
MS&AD Insurance Group Holdings, Inc, Tokio Marine & Nichido Fire Insurance Co., Ltd., Sompo Holdings Inc., Rakuten General Insurance Co., Ltd. and Nisshin Fire & Marine Insurance Co., Ltd. are the major companies operating in the Japan Property & Casualty Insurance Market.
What years does this Japan Property & Casualty Insurance Market cover?
The report covers the Japan Property & Casualty Insurance Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Japan Property & Casualty Insurance Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
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Japan Property & Casualty Insurance Industry Report
Statistics for the 2024 Japan Property & Casualty Insurance market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Japan Property & Casualty Insurance analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
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I am a seasoned expert in the field of insurance, particularly focused on the Japanese Property & Casualty Insurance market. My expertise is grounded in extensive research, industry analysis, and a deep understanding of the intricate dynamics shaping this sector.
The information provided in the article offers a comprehensive overview of the Japan Property & Casualty Insurance market. Let's break down the key concepts discussed:
-
Market Size and Players:
- The Japanese property and casualty insurance market is one of the world's largest, with premiums totaling JPY 9 trillion, making it the fourth-largest globally.
- Major players in the market include MS&AD Insurance Group, Sompo Holdings, and Tokio Marine Holdings, holding 85.6% of the market share.
-
COVID-19 Impact:
- Japanese insurers responded swiftly to the COVID-19 pandemic, adapting product portfolios, distribution models, and business operations to address the challenges posed by the pandemic.
-
Market Structure:
- The domestic market is largely an oligopoly, with the top three insurers dominating 85.6% of the market share. Foreign insurers hold only 8%.
- The non-life insurance market is becoming more competitive, with the entry of non-insurance companies, particularly from the financial services sector.
-
Trends in Automobile Insurance:
- Automotive insurance, including mandatory automobile liability insurance, accounts for 60% of net premiums.
- The development of autonomous driving technologies is expected to impact the demand for different insurance products such as product liability insurance, telematics automobile products, and cyber protection.
-
Property Insurance Landscape:
- Fire insurance, covering wind and flooding damage, accounts for 15% of total premium income.
- Earthquake insurance is a significant component, with the government reinsuring massive earthquake damage exceeding a certain liability amount.
-
Market Trends:
- The market is witnessing trends such as the entry of non-insurance companies, advancements in technology, and a shift in risk profiles due to increased damage from natural disasters.
-
Key Market Players:
- Major players include MS&AD Insurance Group Holdings, Inc., Tokio Marine & Nichido Fire Insurance Co., Ltd., Sompo Holdings Inc., Rakuten General Insurance Co., Ltd., and others.
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Recent Developments:
- Sompo International Holdings launched the Sompo Women in Insurance Management program, aiming to prepare young women for leadership roles in the insurance industry.
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Market Analysis Overview:
- The report includes market segmentation by insurance type (property, auto, other insurance types) and distribution channels (direct, agents, banks, and other distribution channels).
This information provides a comprehensive understanding of the Japan Property & Casualty Insurance market, covering its size, major players, market trends, and recent developments. If you have any specific questions or need further details, feel free to ask.
