Japan life and benefits market

Deflation at the start of this year was a challenge for Japanese life insurers, particularly those writing endowment business. However, encouraged by the success of variable annuity products in recent years, firms are looking to diversify into areas such as retirement, long term care and health insurance

IN DECEMBER, 45 life insurance companies were operating in Japan, according to the Life Insurance Association of Japan (LIAJ) – the highest number since 2000, when there were 47. The changes to LIAJ membership in fiscal year 2008 were the exit of Yamato Life (which went bankrupt and is not included in LIAJ figures for that year) and the arrivals of Japan Post (pictured), two former agricultural co-operative insurers – Airio and Midori – and two internet start-ups – Lifenet and SBI Axa Life. Two more internet start-ups, subsidiaries of Dai-ichi Life and of Sumitomo Life, are expected this year.