Premiums continue downward trend in competitive market

Motor insurance, the market’s largest and most competitive class of business, kept premiums low

Market figures from the General Insurance Association of Japan, which accounts for the non-life business written in the country, show a 1% decrease in direct premiums to Yen 8,529bn (US$76.15bn) for the 12 months from April 2006 to March 2007 while net premiums (Yen 7,537bn) increased by 0.7%. These growth figures are little different from the pattern shown over the past five years, with premium income showing very small changes due to competitive pressures in the dominant motor class, together with the slow growth of the Japanese economy.