Japan Motor Insurance Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Japan Motor Insurance Market is segmented by type (Voluntary automobile, Compulsory automobile) by Distribution Channel (Agents, Brokers and Direct)

Japan Motor Insurance Market Snapshot

japan motor insurance market outlook
Study Period: 2018-2027
Base Year: 2021
CAGR: <2 %

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Market Overview

Due to the global outbreak of COVID-19, motor insurance in Japan has been worst impacted due to the low sale of automobile vehicles. Although the sector is able to hold itself in the digital space, it remains the most affected as far as the overall motor insurance business is concerned. The worst impact of the pandemic has been on the dealers and offline insurers as there is no purchase and selling of vehicles taking place in lieu of the lockdown.

In the fiscal year 2020, net premiums written for compulsory automobile insurance (CALI) in Japan amounted to around 839 billion Japanese yen, reaching a decade-low. Net premiums written for voluntary car insurance reached nearly 4.2 trillion yen. Motor insurance may  provide financial protection against car theft and damage damage caused by incidents other than traffic crashes, such as keying, bad weather, or natural disasters, as well as damage caused by colliding with stationary objects.

Scope of the Report

This report aims to provide a detailed analysis of the Japan Motor Insurance Market. It focuses on the market dynamics, emerging trends in the segments and regional markets, and insights on various product and application types. Also, it analyses the key players and the competitive landscape in the Japan Motor Insurance Market. Japan Motor Insurance Market is segmented by type (Voluntary automobile, Compulsory automobile) by Distribution Channel (Agents, Brokers and Direct)

By Insurance Coverage
Compulsory
Voluntary
By Distribution Channel
Agents
Brokers
Direct

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Key Market Trends

Increase in Motor Vehicles

In 2021, there were approximately 82.08 million motor vehicles in use in Japan, continuing the series of record registration numbers. The main driver for this growth was the number of passenger cars registered. As of March 31, 2021, approximately 61.92 million passenger cars were on Japan's streets, up from about 58.73 million in 2012. The total number of motor vehicles in use, including motorcycles and similar, reached over 82 million in 2021.

It is widely known that Japan’s population is rapidly aging as well as shrinking year by year. Nonetheless, the number of vehicles in use is growing. One reason for this can be found on the demand side of the market. While the average household size has decreased, the number of households has continued to grow. Additionally, supply has adjusted to the Japanese market with affordable small and light-weight vehicles. When looking for a cheap deal, used automobiles are an option as well. 

However, the demographic development is likely to push down vehicle numbers sooner or later when registrations canceled outnumber registrations issued. This process could be accelerated by the fact that households are less likely to invest in private car, especially in urban areas. Instead, the market for shared vehicle use is expected to increase.

motor vehicles in use

Government Focus Towards Artificial Intelligence(AI)

Non-life insurance companies collect big data for use in marketing and pricing. They are also accelerating their operations by using AI (Artificial Intelligence) to assess claims payment and for customer service functions such as call centers. Moreover, AI (Artificial Intelligence) is expected to carry out primary judgment in the region of insurance sales, underwriting, and payment of claims in the future. The term “fintech,” which has recently come into common use, is also used in the insurance industry. The insurance industry has also embraced the term “insurtech” to refer to the fusion of insurance and information technology for the development of the insurance products and to encourage innovation in the operations of non-life insurance companies.

Artificial Intelligence related initial budget

Competitive Landscape

The report covers the major players operating in the Japan Motor Insurance Market. The market is Consolidated due to the top 3 players hold the major share in the market. The market is expected to grow in the forecast period due to the increase in motor sales, adoption of AI (Artificial Intelligence) in the industry and other few factors.

Recent Developments

  • In 2022, Rakuten General Insurance Co., Ltd. (Headquarters: Shinjuku-ku, Tokyo, President: Yuzo Hashiya, hereinafter referred to as "Rakuten General Insurance") has Started Drive Assist (personal car insurance) new contract campaign.
  • In 2021, Aioi Nissay Dowa Insurance UK Limited (AND-E UK) and UK InsurTech Flock, have announced that they have joined as a partners to reinvent commercial motor insurance for modern fleets.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Value Chain / Supply Chain Analysis

    5. 4.5 Porters 5 Force Analysis

      1. 4.5.1 Threat of New Entrants

      2. 4.5.2 Bargaining Power of Buyers/Consumers

      3. 4.5.3 Bargaining Power of Suppliers

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry

    6. 4.6 Key Market Insights

      1. 4.6.1 Impact of Government Regulations and Initiatives on the Insurance Industry

      2. 4.6.2 Impact of AI(Artificial Intelligence) in insurance industry

    7. 4.7 Impact of COVID 19 on Industry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Insurance Coverage

      1. 5.1.1 Compulsory

      2. 5.1.2 Voluntary

    2. 5.2 By Distribution Channel

      1. 5.2.1 Agents

      2. 5.2.2 Brokers

      3. 5.2.3 Direct

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concetration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 TOKIO MARINE & NICHIDO FIRE INSURANCE CO., LTD.

      2. 6.2.2 SOMPO JAPAN NIPPONKOA INSURANCE INC.

      3. 6.2.3 MITSUI SUMITOMO INSURANCE COMPANY, LIMITED

      4. 6.2.4 AIOI NISSAY DOWA INSURANCE COMPANY, LIMTED

      5. 6.2.5 RAKUTEN GENERAL INSURANCE CO., LTD.

      6. 6.2.6 AXA GENERAL INSURANCE COMPANY LIMITED

      7. 6.2.7 SECOM GENERAL INSURANCE CO., LTD.

      8. 6.2.8 MITSUI DIRECT GENERAL INSURANCE CO., LTD.

      9. 6.2.9 ZURICH INSURANCE COMPANY LTD.*

    3. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. DISCLAIMER AND ABOUT US

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Frequently Asked Questions

The Japan Motor Insurance Market market is studied from 2018 - 2027.

The Japan Motor Insurance Market is growing at a CAGR of <2% over the next 5 years.

TOKIO MARINE & NICHIDO FIRE INSURANCE CO., LTD., SOMPO JAPAN NIPPONKOA INSURANCE INC., MITSUI SUMITOMO INSURANCE COMPANY, LIMITED, AIOI NISSAY DOWA INSURANCE COMPANY, LIMTED, RAKUTEN GENERAL INSURANCE CO., LTD. are the major companies operating in Japan Motor Insurance Market.

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