Insurance

Still, in this challenging context, premium income for insurance industry remains stable and profitability recovered after the COVID stress. Behind this apparent stability, the insurance industry made several negative headlines in the local news about relationship between insurance companies and agents and this may trigger changes in both non-life and life industry. For life insurers, distribution is not evolving as much as expected. Tied agents remain the strongest channel. Other agents such as independent financial planners or insurance shops work hard to approach younger generations and pure digital channels do not expand as fast as expected. Compared to Europe, banks represent a relatively small distribution channel with a very limited scope. Banks’ sales of non-life products are sluggish and life offering is mostly single premium whole life or fixed annuity products. Competition is very fierce on guaranteed rate of return.

Internally, action is very much on the preparation of the new Economic “ESR” solvency with the first reporting starting with J GAAP closing of March 2026. EBC members benefit from their parents’ experience in Solvency 2 and will contribute to this big step into a new era for the insurance industry in Japan. European regulators and Japanese FSA share many common objectives. European regulators focus on “value for money” and “product oversight governance” while Japanese FSA is conducting monitoring on “FD” Customer oriented business with adding in 2024 the new “Product governance” dimension.  EBC members are keen to contribute to this client focus approach. Japanese FSA is also introducing in 2024 the Asset Owner Principles and this resonates very much with European approach towards stewardship and sustainability. Climate risk is also on top of agendas in Europe and Japan.

More than ever, the society and individuals need protection in such an uncertain world. Insurance solutions are related to global issues such ageing well, inclusion and climate transition. EBC members are committed to contribute to deliver useful solutions to the Japanese market.