Life insurance - Japan | Statista Market Forecast

The Life insurance market market in Japan is projected to reach a market size (gross written premium) of US$193.10bn in 2024.
In the same year, the average spending per capita in the Life insurance market market is expected to amount to US$1.57k.
The gross written premium is forecasted to show an annual growth rate (CAGR 2024-2029) of -2.46%, resulting in a market volume of US$170.50bn by 2029.
When comparing globally, the United States is expected to generate the highest gross written premium of US$1.3tn in 2024.
Japan's life insurance market is experiencing a surge in demand due to the country's aging population and increasing awareness of the need for financial protection.

Definition:

Life insurance is a type of financial product that provides financial security for individuals and their families. In simple terms, when you buy a life insurance policy, you pay regular premiums to the insurance company. In return, if you were to pass away while the policy is in effect, your designated beneficiaries receive a lump sum payment, known as the death benefit, which can help them cover living expenses and financial needs. Life insurance is designed to provide peace of mind and support for loved ones in the event of the policyholder's death. Gross written premium (GWP) is the main indicator of the insurance market. It is the total amount of money that an insurance company collects from policyholders for their insurance coverage before deducting expenses or commissions.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, loss ratio – calculated as gross claim payments divided by gross written premium, and the share of insureds in the total population for over 50 countries.

Death benefit insurance
Endowment insurance
Disability insurance
Dowry insurance
Birth insurance
Term life insurance
Whole life insurance
Universal life insurance
Burial insurance
Other types of life insurance

Health Insurance
All non-life insurance types
Reinsurance

Over the past decade, the Life insurance market in Japan has witnessed a significant transformation, reflecting changing consumer behaviors and economic conditions.

Customer preferences: In Japan, customers have shown a growing interest in life insurance products that offer not only financial protection but also investment opportunities. This shift in preferences can be attributed to the aging population and the need for retirement planning. Additionally, there is a rising demand for digital insurance solutions among tech-savvy consumers.

Trends in the market: One prominent trend in the Japanese life insurance market is the increasing popularity of hybrid insurance products that combine traditional life coverage with savings or investment components. This trend aligns with the customer preference for holistic financial planning and long-term wealth accumulation. Moreover, there is a noticeable surge in the adoption of ESG (Environmental, Social, and Governance) principles in insurance products, reflecting a broader global trend towards sustainable investing.

Local special circumstances: Japan's unique demographic landscape, characterized by a rapidly aging population and low birth rates, has a profound impact on the life insurance market. Insurers are facing the challenge of providing retirement solutions to a growing number of elderly policyholders while also appealing to younger generations. This demographic shift has led to the development of innovative insurance products tailored to different age groups and financial needs.

Underlying macroeconomic factors: The prolonged low-interest-rate environment in Japan has compelled life insurance companies to adjust their product offerings and investment strategies. Insurers are exploring alternative investment options to generate returns in a low-yield market, driving innovation in product design and risk management practices. Additionally, regulatory reforms aimed at enhancing consumer protection and transparency have reshaped the competitive landscape of the life insurance sector in Japan.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

The biggest life insurance market globally is the United States, and it was almost twice as large as the second-biggest market, China. People take out life insurance to financially support their loved ones after their death. The payout is often used to cover funeral expenses, replace income earned by the deceased, or pay for children's education. It can be paid out in a lump sum or as an annuity, which is paid in regular installments for either a specified time or for the lifetime of the beneficiary. In 2022, the United States was the leading life insurance premium writing country, with a total value of life direct premiums written exceeding 600 billion U.S. dollars. The second and third-largest life insurance markets were China and the United Kingdom, respectively.