Japan insurance share set to fall to 3% by 2036

India is projected to expand about 10.5% annually over the next decade.

Japan’s insurance market is expected to grow more slowly than much of Asia over the next decade, with its share of global premiums set to decline as markets such as China and India expand faster, according to Allianz Research.

Japan recorded total insurance premium growth of 2.1% in 2025, below the global rate of 7.1%.

By comparison, insurance premiums across Asia excluding China and Japan rose 10.9%, more than double the region’s 4.9% average annual growth over the previous decade.

Japan generated about $301.4b (EUR265.2b) in property and casualty (P&C) and life premiums in 2025.

Life insurance accounted for $235.0b (EUR206.7b), whilst P&C premiums reached $66.5b (EUR58.5b). Health insurance is not reported separately in Japan because it is generally treated as “third sector” insurance within life products.

Growth was particularly slow in life insurance. Japan’s life premiums increased 1.5% in 2025, compared with 11.4% in China and 13.1% across the rest of Asia excluding Japan and China.

Wider Asia recorded 9.9% growth in life premiums overall, with most markets posting double-digit increases.

Japan remains one of Asia’s more developed insurance markets. Insurance premiums were equivalent to about 7.4% of GDP in 2025, compared with 5.1% across Asia.

Premium spending averaged $2,448 (EUR2,154) per person, well above the regional average of $447 (EUR393).

However, the gap in growth is expected to continue. Allianz forecasts Japan’s P&C premiums to increase by an average 2.5% annually from 2026 to 2036, whilst life premiums are expected to grow 2.9% a year.

That compares with projected P&C growth of 6.2% across wider Asia and 6.3% in China.

Japan’s global insurance market share is consequently expected to fall to 3.0% by 2036 from 3.9% in 2025.

China’s share is projected to rise to 13.4% from 10.9%, whilst Asia excluding China and Japan is expected to increase its share to 9.4% from 8.1%.

India is also closing the gap. Allianz expects India’s insurance market to grow by about 10.5% annually over the next decade, with the country potentially challenging Japan as Asia’s second-largest life insurance market by 2036.

($1.00 = EUR0.88)