Market Insights Financial Insurances Non-life insurances

Property Insurance - Japan

Japan

The Property Insurance market market in Japan is expected to reach a projected market size (gross written premium) of €18.16bn in 2024.
In the same year, the average spending per capita in the Property Insurance market market is estimated to be €148.10.
Looking ahead, the market is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 0.77%, resulting in a market volume of €18.87bn by 2029.
In comparison to other countries worldwide, the United States is projected to generate the highest gross written premium in the Property Insurance market market, amounting to €222.9bn in 2024.
Japan's property insurance market is experiencing a surge in demand due to the country's high seismic activity and the need for comprehensive coverage against earthquake-related damages.

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Analyst Opinion

The Property Insurance market in Japan is experiencing steady growth and development, driven by various factors shaping the industry landscape. Customer preferences in Japan are leaning towards comprehensive property insurance coverage that not only protects against natural disasters such as earthquakes and tsunamis but also covers damages from fire, theft, and other unforeseen events. Customers value the peace of mind that comes with knowing their properties are fully protected, leading to an increased demand for customized insurance products that cater to their specific needs. Trends in the market indicate a shift towards digitalization and technology integration in the property insurance sector in Japan. Insurers are increasingly leveraging data analytics, artificial intelligence, and machine learning to streamline processes, enhance customer experience, and assess risks more accurately. This trend is not only improving operational efficiency but also enabling insurers to offer more personalized products and services to their customers. Local special circumstances in Japan, such as the country's geographical location prone to natural disasters, play a significant role in shaping the Property Insurance market. The frequent occurrence of earthquakes and typhoons has heightened the awareness and importance of property insurance among Japanese residents. Insurers have responded by developing innovative products that provide comprehensive coverage against these specific risks, further driving the growth of the market. Underlying macroeconomic factors, including Japan's aging population and low interest rates, have also influenced the Property Insurance market. With an aging population, there is a growing need for insurance products that cater to the elderly demographic, such as specialized coverage for retirement homes and long-term care facilities. Additionally, low interest rates have prompted insurers to seek alternative revenue streams, leading to the introduction of new insurance products and investment strategies to remain competitive 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.