Japan direct written premiums to blow up to $323.6b by 2025

The country’s life insurance industry is growing at a CAGR of 1.4%.

Japan’s life insurance industry is projected to grow from $269.2b (JPY28.7t) in 2020 to $323.6b (JPY30.7t) in 2025 in terms of direct written premiums (DWP), according to data and analytics firm GlobalData.

The life insurance industry is projected to grow at a compound annual growth rate (CAGR) of 1.4% over 2020 to 2025, supported by the gradual economic recovery.

According to Shabbir Ansari, insurance analyst at GlobalData, the slower pace of economic recovery due to the resurgence of the COVID-19 pandemic is expected to continue to impact the Japanese life insurance industry in 2021.

“The industry is expected to decline by 1.7% in 2021 following a 6.9% decline in 2020.” Ansari added.

The report noted that the liife Insurance industry is dominated by individual life insurance that accounted for 76.2% of DWP in 2020. As per the data released by Life Insurance Association of Japan, 4.8 million individual life insurance policies were sold during April to June 2021, an increase of 193% compared to 2.5 million sold during the same period last year.

“General annuity accounted for 19.6% of total life insurance DWP in 2020. In Japan, the population aged 100 years and above is expected to reach 232,812 by 2025, making it one of the leading nations in terms of high life expectancy. As a result, insurers are focusing on products offering larger annuity funds by reducing surrender value and death benefits,” Ansari said.

Meanwhile, group life insurance accounted for 3.7% of the total life insurance DWP in 2020. The premium for group life policies declined by 7.3% in the second quarter of 2021 compared to the same period in the previous year due to an increase in unemployment rate because of the pandemic.

Despite grim numbers in the first half of 2021, a recovery is predicted in the second half of 2021 driven by the country’s demographic, growing momentum in vaccine rollout and economic revival.

Follow the links for more news on

Japan $323.6b Direct Written Premiums

Japan Growing Life Insurance Industry

Japan Life Insurance Industry 2021

Also Read

HKIA takes action against ethical breach by agent

Asia bears $17b of Q1 natural disaster economic loss

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit