Japan’s insurance market is expected to grow by $46.7 billion between 2024 and 2029, driven primarily by the country’s aging population and a rising demand for long-term care services, according to a recent report by Technavio. This growth represents a compound annual growth rate (CAGR) of 3%.
As of 2023, more than 30% of Japan’s population is aged 65 and older, fueling a surge in demand for life and health insurance products. Nearly 90% of the population holds life insurance policies, reflecting high penetration in the market. Many Japanese companies also offer life insurance as a part of employee benefits, further boosting policy uptake.
The insurance sector in Japan encompasses both life and non-life insurance, covering areas such as mortality risk, motor, property, and health insurance.
In addition, technological advancements are reshaping the industry. The World Bank’s Life Insurance Corporation (LIC) initiative is introducing digital lockers to provide easier access to policies, while Internet of Things (IoT) devices and InsurTech are paving the way for innovative solutions in medical expenses, travel insurance, and dental coverage.
However, the ongoing digital transformation also presents new challenges. The increasing reliance on technology has heightened the risk of cybercrime, with hacking, software intrusions, and data breaches threatening the security of sensitive client information.
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