Market Size of Japan Property & Casualty Insurance Industry
| 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)
*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.
