Japan’s general insurance industry to reach $102.6b in 2030

Increased premium rates and demand for motor insurance will help drive growth.

Japan’s general insurance industry is expected to be worth $102.6b (JPY14.5t) in 2030 in terms of gross written premiums (GWP), said data and analytics company GlobalData.

This translates to a compound annual growth rate (CAGR) of 3% between 2025 and 2030.

The general insurance market in Japan is estimated to register an annual growth rate of 3.7% in 2025, on the back of a recovery in the demand for motor insurance policies, elevated catastrophe losses, increased premium rates, and digitalization.

Motor, property, and liability insurance combined are expected to account for 82.7% of the general insurance GWP in 2025, GlobalData said.

Increased price of motor and property insurance will also drive GWP growth, said Swarup Kumaro Sahoo, senior insurance analyst, GlobalData.

“Insurance premiums have been revised five times in the past decade. Frequent occurrence of natural disasters and rising fraudulent claims are some of the factors that have led to the increase in premium rates,” Sahoo said.

According to the Voluntary Sale Fair Association, fire insurance premiums are expected to increase by 30-35% in 2025. Since fire insurance is mandatory in Japan for households with mortgages, the increase in premium rates will support the growth of property insurance during 2025 to 2030, said GlobalData.

“Japan’s general insurance market presents a favorable outlook supported by the high frequency of natural catastrophes, continued rate momentum in property and motor insurance, and favorable regulatory changes,” Sahoo said.

The expansion in the economy, a decrease in inflation rate, and termination of the negative interest rate policy are expected to further support the growth of general insurance over the next five years, Sahoo added.