Meiji Yasuda Life Insurance, one of Japan's top five insurers, is considering the implications of an industry-wide increase in policy cancellations, according to its Deputy President, Atsushi Nakamura.
Mr Nakamura told Bloomberg this, as policyholders are being encouraged by higher interest rates to consider alternative financial products.
Japan’s life insurers are facing a surge in policy cancellations as rising interest rates make alternative investments more attractive. During the first five months of 2026, insurers paid out more than JPY6tn ($37.7bn) to customers who terminated their policies, roughly 40% more than in the same period a year earlier. The figure is the highest recorded in data from the Life Insurance Association of Japan dating back to 2020.
The trend is particularly significant in Japan, where life insurance products often combine death protection with savings or investment features. As the Bank of Japan has moved away from its long-standing negative interest rate policy and raised rates to 1%, investors have increasingly sought opportunities offering higher returns.
The changing investment environment is putting pressure on insurers, with some policyholders choosing to surrender existing policies and redirect their money towards higher-yielding assets.