Japanese non-life insurance market forecast 2024-2028

GlobalData expects the Japanese non-life insurance market's turnover to increase from 3 200 billion JPY (22.4 billion USD) in 2024 to 3 600 billion JPY (26.5 billion USD) in 2028. The five-year compound annual growth rate (CAGR) is estimated at 2.8%.

During fiscal year 2023, the sector recorded a 0.9% decline in written premiums due to limited underwriting of natural catastrophe policies.

In 2024, Japan was hit by three major climatic events. On 1 January, a powerful earthquake hit the Noto peninsula, causing insured losses totalling 90.97 billion JPY (579 million USD). Eight months later, the 8 August magnitude 7.1 earthquake prompted experts to issue an alert about a potential mega-earthquake.

These two events were then joined by Typhoon Shanshan, which only raised the cost of insured losses.

These three disasters have led to an upsurge in demand for fire and natural catastrophe policies, which are expected to account for 84.7% of non-life premiums in 2024.

According to GlobalData, market growth is likely to resume in 2024, thanks to growing demand for natural catastrophe policies and increased activity in the construction and energy sectors.