Insurance Market and Actuarial Profession in Japan

60 Pages·2004·0.42 MB·English

Insurance Market
and
Actuarial Profession
in Japan
Presentation at
2004 CAS annual meeting in Montreal
November 16, 2004
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Part 1:
The Non-Life Insurance Market in Japan
2
Part1
Non-Life Insurance Market in Japan
CCoonntteennttss
1. Statistical Overview of the Non-Life Insurance
Market in Japan
2. Development of Deregulation and Liberalization
of the Non-Life Insurance Market in Japan
3. Transition of the Non-life Rating
Organization (SAN-TEI-KAI) System
4. Automobile Insurance in Japan
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1. Statistical Overview
of the Non-Life Insurance Market
in Japan
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1． Statistical Overview of the Non-Life Insurance Market in Japan
Key Statistics
Numbers of the Non-Life Insurance Companies
(cid:132)
and Agents
Gross Written Direct Premiums and Net Written
(cid:132)
Premiums by Line of Business
Loss Ratio, Expense Ratio and Combined Ratio
(cid:132)
Business results : Ordinary P&L and After-tax P&L
(cid:132)
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1. Statistical Overview of the Non-Life Insurance Market in Japan
Numbers of Non-Life Insurance Companies and
Agents (as of March 31, 2004)
# of the licensed non-life insurance companies
(cid:132)
(Note)
Total : 54
(cid:190) Domestic insurer: Licensed as domestic insurer,
including foreign insurers’ subsidiaries
Domestic insurers : 29 incorporated in Japan
(cid:190) Foreign insurer: Licensed for a branch
Foreign insurers : 25
operation or through general agent
# of companies’ employees (incl. directors)
(cid:132)
: 85,655
# of agents : 305,836
(cid:132)
# of sales staff of agents
(cid:132)
: 1,716,006
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1. Statistical Overview of the Non-Life Insurance Market in Japan
Numbers of the Non-Life Insurance Companies
and Agents (cont’d)
<Chart 1> Number of Non-life Insurance Companies, Agents and Brokers
Fiscal Year 1995 1996 1997 1998 1999 2000 2001 2002 2003
Domestic
26 33 33 35 36 36 33 30 29
Companies
Foreign
30 31 29 27 27 26 26 24 25
Companies
Total 56 64 62 62 63 62 59 54 54
Agents 476,217 623,741 592,126 593,872 570,919 509,619 342,191 323,139 305,836
Full-time 96,931 90,567 85,544 79,126 73,353 60,264 58,557 55,438 51,283
(share) 20.4 14.5 14.4 13.3 12.8 11.8 17.1 17.2 16.8
Part-time 379,286 533,174 506,582 514,746 497,566 449,355 283,634 267,701 254,553
(share) 79.6 85.5 85.6 86.7 87.2 88.2 82.9 82.8 83.2
Number of sales
1,086,264 1,181,865 1,170,497 1,180,784 1,154,511 1,145,252 1,575,195 1,642,271 1,716,006
staff in Agents
Brokers - 15 45 54 55 54 53 50 50
note : The above figures stand for the total of domestic and foreign insurance companies.
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1. Statistical Overview of the Non-Life Insurance Market in Japan
Gross Direct Premiums by Distribution Channel
(Fiscal Year ending in March 2004)
<Chart 2> Percentage of Gross Direct Premiums collected by Distribution Channel
(for Domestic and Foreign non-life Insurance Companies combined)
Direct Distribution
(Note)
633 billion yen (6.9％)
Brokers "Direct Distribution"
16 billion yen includes sales through
(0.2％) employed sales staff.
Gross Direct
Premiums
9,182 billion yen
Agents

8,533 billion yen
(92.9％)
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1. Statistical Overview of the Non-Life Insurance Market in Japan
Lines of Business of Non-Life Insurance in Japan
Fire
(cid:132)
(Voluntary) Automobile
(cid:132)
Personal Accident
(cid:132)
: Accident, Medical Treatment, Cancer etc.
Miscellaneous Casualty
(cid:132)
: Liability, Workers’ Compensation etc.
Marine & Inland Transit
(cid:132)
: Hull, Cargo & Inland Transit
CALI (Compulsory Automobile Liability Insurance)
(cid:132)
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1. Statistical Overview of the Non-Life Insurance Market in Japan
Line of Business of Non-Life Insurance in Japan
(cont’d)
Third-Sector : Medical, Cancer, Nursing Care etc.
(cid:132)
- Not necessarily classified to life or non-life
- Benefits : Disease, Accident, Nursing Care
- In 2001, both life and non-life insurance companies were allowed to
start selling all kind of third-sector insurance products.
Saving Type (Maturity-Refund-type) Insurance
(cid:132)
- This type of policies have been in the market since early 1960s
- These policies are unique (mostly) to the Japanese market
- Having combined function of both indemnity and savings
- At the maturity of the policy term, policyholders receive guaranteed
amount of refund
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