Magazine

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Feb 2015

Country Profile


Optimism for profit and growth in 2015

Overseas expansion remains high on both life and non-life insurers' agenda as they seek growth in emerging markets in 2015. There is optimism for not only growth but also profit this year as insurers build on their good results in 2014. Improved motor insurance results and a relatively benign 2014 in terms of natural catastrophes have meant that FY2013 and first half of FY2014 were good years for the non-life insurers. For life insurers, they are improving their profitability with better investment strategies.


Interview with a regulator: Overseas expansion a domestic matter for FSA

Japanese insurers have accelerated their overseas expansion in recent years. In this exclusive interview, Mr Takashi Hamano, Assistant Commissioner for International Affairs, Financial Services Agency, Japan, shares how his organisation supports that development and lays out the measures that will be enforced to ensure sustainable growth of the industry. In the Q&A session transcribed below touching on topics ranging from the industry's recent performance to IFRS standards and the Stewardship code, Mr Hamano tells us that the negative spread that Japanese insurers had to grapple with for decades is now becoming a thing of the past. By Gregory Taylor, AIR correspondent, Northeast Asia


GIAJ: Profitability is back for Japanese general insurers

Leaner motor insurance lines and a relatively benign year in terms of natural catastrophes have ushered in an era of profitability for Japanese non-life insurers, but the road to sustained, long-term profitability will be long and winding. Mr Masayoshi Hori, Executive Director of the General Insurance Association of Japan (GIAJ) shares his views. By Gregory Taylor, AIR correspondent, Northeast Asia

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Overseas expansion remains high on life insurers' agenda

Japanese life insurers will likely continue their overseas expansion and will work towards greater sustainability of the country's social security system. Mr Koichiro Watanabe, Chairman of the Life Insurance Association of Japan (LIAJ), shares his insights on where the sector is heading. By Gregory Taylor, AIR correspondent, Northeast Asia

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Toa Re: Industry's prospects looking up, but vigilance remains key

Mr Tomoatsu Noguchi, President and Chief Executive of Toa Re, reflects on the non-life and life sectors in 2014 as well as shares his outlook for 2015 with the pending increase in sales tax, the perennial competition and how Toa Re's long history of experience and insights will continue to serve as solid competitive advantage in today's excess capital environment. By Gregory Taylor, AIR correspondent, Northeast Asia

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Firms in Japan are reassessing their commercial insurance protection needs

Rising risk awareness and the projected economic improvement in Japan should see premium growth for the non-life sector in 2015. Ms Irina Fan of Swiss Re Asia elaborates.

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MSIG still eyeing further expansion

Overseas expansion is a key strategy for many insurers in Japan. MSIG confirms this and shares with us its plans for the year ahead. We also look at what some of the other big boys are doing in this sector. By Gregory Taylor, AIR correspondent, Northeast Asia

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Stability makes insurance market even more attractive to foreign insurers

The re-election of Prime Minister Shinzo Abe with a renewed mandate for his Abenomics policies offers the Japanese insurance market the stability it requires to better meet the challenges of adverse demographics and ever-more sophisticated consumer demands. Mr Tetsuya Fujita of ReMark Japan Co Ltd outlines the key requirements for insurers in 2015, and assesses how the ongoing economic recovery makes Japan a more attractive market for investors, both foreign and domestic.


Deregulation of insurance brokers and overseas subsidiaries of insurers

By Mr Shinichi Takahashi, Partner, and Mr Takahiro Sato, Associate, Nishimura & Asahi, Tokyo