Market Insights Financial Insurances Non-life insurances

Health insurance - Japan

Japan

The projected market size of the Health insurance market market in Japan is expected to reach €15.88bn in 2024.
The average spending per capita in the Health insurance market market in Japan is estimated to be ¥€129.50 in 2024.
The gross written premium in Japan is anticipated to exhibit an annual growth rate of 2.68% (CAGR 2024-2028), resulting in a market volume of €17.65bn by 2028.
In global comparison, the United States is forecasted to generate the highest gross written premium, amounting to €1,490.0bn in 2024.
Japan's health insurance market is experiencing a shift towards digital platforms for policy management and claims processing.

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Analyst Opinion

The Health insurance market in Japan has been experiencing significant growth and transformation in recent years.

Customer preferences: Japanese consumers are increasingly valuing comprehensive health insurance coverage that includes not only basic medical expenses but also additional services such as dental care, wellness programs, and mental health support. This shift in preferences is driving insurance companies to offer more diverse and customized plans to cater to the evolving needs of the population.

Trends in the market: One notable trend in the Japanese health insurance market is the rising popularity of private health insurance plans. As the public healthcare system faces challenges such as an aging population and increasing healthcare costs, more individuals are turning to private insurers to supplement their coverage and gain access to a wider range of services. This trend is reshaping the competitive landscape and pushing insurance providers to innovate and differentiate their offerings.

Local special circumstances: Japan's rapidly aging population is a key factor influencing the health insurance market. With a large proportion of elderly citizens requiring specialized healthcare services, insurance companies are adapting their products to address the unique needs of this demographic group. Additionally, the government's efforts to promote preventive care and digital health solutions are creating opportunities for insurers to develop new products and services tailored to the changing healthcare landscape.

Underlying macroeconomic factors: The overall economic stability and affluence in Japan are supporting the growth of the health insurance market. As disposable incomes rise and awareness of the importance of health and wellness increases, more individuals are willing to invest in comprehensive insurance coverage. Moreover, the regulatory environment in Japan is favorable for insurance companies, providing a conducive platform for innovation and expansion in the market.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.