Japan’s Insurance Market Poised for Substantial Growth
Tokyo, Japan – A new report projects significant expansion for Japan’s insurance market over the next several years. According to a Technavio report, the market is expected to grow by $46.7 billion between 2024 and 2029, reflecting a compound annual growth rate (CAGR) of 3%.
An image of Tokyo, Japan.
This growth is primarily fueled by the country’s aging population, which is increasing demand for long-term care and health insurance products. In 2023, over 30% of Japan’s population was aged 65 years or older. This demographic trend has contributed to a high rate of life insurance penetration, with nearly 90% of the population holding policies. Many Japanese companies also offer life insurance as an employee benefit.
The market encompasses both life and non-life insurance sectors, covering a range of risks including mortality, motor vehicle, property, and health. The report highlights the influence of technological advancements, such as the World Bank’s LIC initiative, which promotes digital lockers to facilitate easier access to insurance policies. In addition, the integration of the Internet of Things (IoT) and InsurTech is introducing innovative solutions for managing medical expenses, travel insurance, and dental emergencies.
However, the digital transformation also presents challenges. Increased cybercrime risk, including hacking, software intrusions, and data breaches, poses a significant threat to sensitive client information.
