For all its strengths, the massive Japanese life segment is a mature market. Many of the majors are lookingfor growth overseas and/or through domestic acquisitions. This quarter, we have revised downwards ourforecasts for premiums in the non-life segment. This is mainly because of a more cautious view of theprospects for motor vehicle insurance premiums. In both major segments, profitable niches remainavailable to foreign insurance companies.
Key Updates And Forecasts
The life segment will be supported by: increasing demand for retirement income solutions; theestablished position of the life insurance industry as a provider of social security in Japan; the low ratesof return available from competing investment opportunities; and innovation by life insurers in terms ofproduct design, distribution and brand. Major life companies continue to announce initiatives to expandoverseas and/or to undertake acquisitions of other Japanese companies. Overall, though, premiums in thissegment should grow quite slowly through the remainder of the forecast period.
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