Japan’s general insurance industry is set to grow to $102.6 billion (JPY 14.5 trillion) by 2030, driven by higher premium rates and increased demand for motor insurance, according to data from GlobalData.
This forecast represents a compound annual growth rate (CAGR) of 3% from 2025 to 2030.
In 2025, Japan’s general insurance market is expected to grow by 3.7% annually, supported by a recovery in demand for motor insurance, higher catastrophe-related losses, rising premium rates, and ongoing digitalization of the sector.
Motor, property, and liability insurance are projected to account for 82.7% of Japan’s general insurance gross written premiums (GWP) in 2025, according to GlobalData.
Rising premiums in both motor and property insurance are expected to drive GWP growth, said Swarup Kumaro Sahoo, senior insurance analyst at GlobalData. He explained that insurance premiums in Japan have increased five times over the past decade due to frequent natural disasters and rising fraudulent claims.
Fire insurance premiums, which are mandatory for households with mortgages, are projected to increase by 30-35% in 2025, according to the Voluntary Sale Fair Association. This hike in premiums will further boost the growth of property insurance between 2025 and 2030.
Sahoo also highlighted that Japan’s general insurance market has a positive outlook, driven by the frequent occurrence of natural catastrophes, ongoing rate increases in property and motor insurance, and favorable regulatory changes.
Further supporting the growth of the general insurance market will be the country’s economic expansion, a decrease in inflation rates, and the end of the negative interest rate policy in the coming years.
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