, Japan
9 views

New specialty businesses to sustain Japan P&C insurers' capital

Growth of specialty products will support underwriting.

Japanese P&C insurers will sustain their strong capitalisation and profits, underpinned by a likely post-pandemic increase in demand for new specialty business which will sustain future profitability, according to a Moody’s Japan KK report.

The sector’s resilience against catastrophic loss events and the pandemic relied on their adequate use of reinsurance and geographic diversification, said Moody’s senior analyst Soichiro Makimoto.

The pandemic will also spur new demand for specialty products such as cybersecurity, business interruption and event cancellation insurance. The growth of these products will support robust capital and underwriting despite the inherent risks of potential claims inflation and unseasoned loss behaviour, the report said.

The motor business will still be the largest profit contributor in domestic business with a 90-95% combined ratio. On the other hand, domestic fire insurance lines will continue to pull down profits due to structural issues, such as long policy terms, low granularity in pricing system, and social pressure from domestic customers.

Asset risk will improve as insurers divest high equity holdings and hike the share of assets with lower market and concentration risks, notably overseas high-quality credit investments. More insurers are also gradually incorporating ESG factors into their underwriting, which is a credit positive as it will subdue potential higher claims and reputation risk.
 

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Get Insurance Asia in your inbox

Aussie PM frets about sustainability of disability insurance scheme

The growth in payment per participant was due to inconsistent information, he said.

China Taiping Insurance maintains stability amidst pandemic: report

But ROE and ROA were lower in 2020 compared to 2019.

Pivoting to Digital: How the insurance sector is moving with tech

Making bolder moves on digital will be needed to attract a bigger part of the market.

Singapore life insurers post 29% jump in Q1 2021 weighted new premiums

Single-premium products grew 85% QoQ in weighted premiums.

Luxury import cars drive South Korean non-life premiums in 2020

Top general insurers had  $16.82b in premiums through credit cards in 2020.

Indian insurers at the cusp of transformation: retired IRDAI chairman

India's IT capabilities will accentuate the further growth of the sector.

Indian general insurers likely to hit $36.4b in 2025

The sector has a CAGR of 8.7% over FY2019-2024.

HSBC Life, dacadoo partner to promote better health amongst users

The insurer will integrate dacadoo into its health platforms.

Philippine insurers' 2020 net income slips 8.6% to $859m

Premium income only crept up 1.18% YoY.