Japan is the 3rd largest economy in the world and has the 2nd largest insurance industry only next to United States. It is very sophisticated and organized and becoming very competitive.Japan’s insurance industry is dominated by the domestic insurance companies.Japan insurance industry is dominated by agents for distribution of policies. Banks are allowed to sell insurance policies. Japan’s financial reform and liberalization allowed the foreign insurance companies to enter into Japan.
Japan’s Insurance market is a huge market comparable to U.S. but they have only few companies, so the market competition is very limited and customers have fewer choices in choosing the insurance policies. There is a need for structural reform with focus to increase market competition and make the market more transparent in disclosure and control fraud.Foreign companies have strong financial position and good performance record that makes them handle the market requirements better by providing better policies options to the customer.
Japan has a huge life insurance market , the majority of which is controlled by the domestic insurance companies. As the population is growing older the life insurance market is going to shift. In Japan the Postal system also runs the life insurance system called as Kampo.
The Financial Services Agency, Insurance Business Division acts as the regulatory body of insurance in Japan.
Whole life insurance and medical life insurance are popular insurance products in Japan. 90% of the Japaneses household have life insurance.
Japan is one of the top travel destinations for travelers around the world , so when traveling to make sure to get a travel insurance that will protect you from any kind of trouble or financial loss.
In Japan there is a compulsory public medical insurance system. There are 2 medical insurance system in Japan , one is the Social insurance system for the working people and another is the National Insurance System for all others. The social insurance system is registered through the employer and a part of salary is deducted as premium. National Insurance system is issued by the municipalities where you need to register and pay the premium to get the health insurance card. Through the help of insurance system you can avail the medical treatment, dental treatment and other welfare pensions.
Insurance Companies In Japan:
There are 43 insurance companies in Japan including both domestic and foreign insurance companies. Sompo Japan Insurance is the 2nd largest property insurance company only next to Tokio Marine. It provides range of insurance services including life insurance, securities and others.
Major Japanese insurance companies are :
Meiji Yasuda Insurance
American Family Insurance
Tokyo Marine & Nichido
Nippon Koa Insurance
Japan Post Insurance
Meiji Yasuda Life Insurance
Mitsui Direct general insurance company
Nippon Life Insurace
Nisshin Fire & Marine insurance company
Last Updated on : 26th August 2013