Life insurance industry in Japan - statistics & facts
Japan, one of the most rapidly aging societies in the world, has the fourth-largest life insurance market in the world. Over the past years, health insurance has been the primary driver of growth in Japan’s life insurance market.
As of 2022, there were around 42 private life insurance companies operating in Japan. Nippon Life Insurance Group, Dai-ichi Life Holdings, Meiji Yasuda Life Insurance Group, Sumitomo Life Insurance Group, and Japan Post Insurance represent key players in the market. In addition to these large corporations, there are other providers of life insurance products in Japan, such as cooperatives that offer mutual aid insurance to their members and small-amount and short-term insurance (SASTI) business operators, mini-insurers, which provide limited insurance products at low premiums.
The demographic shift in Japan, marked by low birthrates and a rising life expectancy, puts a strain on social security systems and has led to higher demand for private insurance products that cover risks associated with a long life. Health insurance accounted for the largest number of new policies taken out each year. In line with this trend, insurance companies have started to launch new products that are specifically tailored to the needs of Japan’s aging population, such as dementia insurance.
Market size and key players
The Japanese life insurance market is one of the largest in the world. In terms of premiums written, Japan ranked fourth worldwide, after the United States, China, and the United Kingdom. Almost 90 percent of households are covered by life insurance, and life insurance penetration, the ratio of direct gross premiums to GDP, reached six percent in the fiscal year 2022. With a market share of 74.1 percent, life insurance plays an important role in the domestic insurance industry.As of 2022, there were around 42 private life insurance companies operating in Japan. Nippon Life Insurance Group, Dai-ichi Life Holdings, Meiji Yasuda Life Insurance Group, Sumitomo Life Insurance Group, and Japan Post Insurance represent key players in the market. In addition to these large corporations, there are other providers of life insurance products in Japan, such as cooperatives that offer mutual aid insurance to their members and small-amount and short-term insurance (SASTI) business operators, mini-insurers, which provide limited insurance products at low premiums.
Growing demand for health insurance
The total premium income generated by private life insurers reached 38 trillion yen in the fiscal year 2022. Annualized premiums of individual life insurance reached 27.7 trillion yen, declining for the fourth consecutive year. At the same time, annualized premiums of third-sector insurance, such as medical, long-term care, and personal injury insurance, kept rising. The value of life insurance policies in force, which describes the amount of benefits, has continually declined over the past years, parallel to an increase in the number of policies in force. This trend reflects a large share of health-related insurance products in the number of policies in force that do not include any or only small amounts of death benefits.The demographic shift in Japan, marked by low birthrates and a rising life expectancy, puts a strain on social security systems and has led to higher demand for private insurance products that cover risks associated with a long life. Health insurance accounted for the largest number of new policies taken out each year. In line with this trend, insurance companies have started to launch new products that are specifically tailored to the needs of Japan’s aging population, such as dementia insurance.
