S&P Global: Japan Insurance Trends
On July 22, 2025, S&P Global Ratings hosted a live webinar titled "Japan Insurance Sector Trend," providing an in-depth analysis of the current state and future outlook for Japan's life and non-life insurance industries. The presentation, led by Director Toshiko Sekine and Associate Director Koshiro Emura, and moderated by Managing Director Kiyoko Ohora, detailed how Japanese insurers are navigating a complex environment of rising domestic interest rates, geopolitical uncertainty, and evolving regulatory standards.
The core message of the webinar was one of cautious optimism, highlighting the sector's enhanced resilience. Japanese insurers are actively diversifying revenue sources, strengthening their asset-liability management (ALM), and reducing market risk by divesting strategic equity holdings. While the sector's creditworthiness is expected to remain stable, with most major insurers maintaining A+ ratings in line with Japan's sovereign rating, several key risks and strategic divergences are shaping the industry's future. These include managing unrealized losses on bond portfolios, navigating the implications of the new economic value-based solvency regime (J-ICS), and pursuing overseas growth through mergers and acquisitions.
The discussion was structured around four key themes: the main takeaways and macroeconomic outlook, detailed trends in the life and non-life sectors, the strategic differences between listed and mutual insurers, and a deep dive into the impact of rising interest rates in Japan.
