Insurance firm oligopoly holds 86% of Japan’s net premium income

Net premium income for all business lines in 2021 reached $62b.

The three biggest insurers in Japan hold 86% of the net premium income of the non-life insurance industry in the fiscal year 2021, a report by Toa Reinsurance reveals.

The report said, that due to mergers and business integrations in the past years, the non-life insurance market has become an oligopoly comprising the three largest non-life insurance groups namely, MS&AD Insurance Group Holdings, Inc., Sompo Holdings, Inc. and Tokio Marine Holdings, Inc. 

The net premium income for all business lines of the 29 non-life members of the General Insurance Association of Japan (GIAJ) reached $62b for the fiscal year 2021 for automobile and fire insurance classes.

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Paid basis net claims increased to $33.07b because of the Earthquake off the Coast of Fukushima Prefecture, which occurred in February 2021, and the increase in automobile claims, which had declined in the previous year. 

As a result, the loss ratio increased by 1.3 percentage points to 59.3%. Expenses increased to $20.32b The net expense ratio increased by 0.2 percentage points to 32.9%. Underwriting profit (earned/incurred basis) grew to $2.18b. Ordinary profit, calculated as the sum of underwriting profit and investment profit, increased to $6.25b. After deducting tax expense, net income also increased to $4.70b.