Japan slated for 1.74% CAGR through 2028

The market also benefits from the integration of IT and analytic solutions.

The Japanese insurance market is forecasted to grow by $26b from 2023 to 2028, with a compound annual growth rate (CAGR) of 1.74%, according to a Technavio report.

This growth is driven by Japan's aging population, which is increasing demand for long-term care and health insurance. 

The market also benefits from the integration of IT and analytic solutions, enabling personalised offerings and operational efficiency.

Foreign direct investment has played a notable role in expanding this segment. Meanwhile, the non-life insurance sector is supported by a variety of offerings, including travel and medical expense coverage, which address specific customer needs.

Despite the positive outlook, challenges persist. The rise of cybercrime poses a significant threat, particularly as the industry adopts advanced technologies like AI and machine learning. Additionally, competition from digital insurers is intensifying. 

To remain competitive, Japanese insurers are prioritising cybersecurity, digital transformation, and customer-centric innovations.