Japan's insurance market to grow $47b by 2029

The ageing population is boosting demand for long-term care.

Japan’s insurance market is projected to grow by $46.7b between 2024 and 2029, with a compound annual growth rate (CAGR) of 3%, according to a Technavio report.

Japan’s aging population is increasing demand for long-term care and health insurance. In 2023, over 30% of the population was aged 65 and above, contributing to high life insurance penetration, with nearly 90% of the population holding policies. 

Many companies also offer life insurance as an employee benefit. The market includes life and non-life insurance sectors, covering mortality risk, motor, property, and health insurance.  

The World Bank’s LIC initiative is promoting digital lockers for easier policy access, whilst IoT and InsurTech are introducing new solutions for medical expenses, travel insurance, and dental emergencies. 

However, digital transformation has also increased the risk of cybercrime, with hacking, software intrusions, and data breaches posing threats to sensitive client information.