Japan Motor Insurance Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 54.69 Billion |
| Market Size (2029) | USD 64.67 Billion |
| CAGR (2024 - 2029) | 3.41 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Japan Motor Insurance Market Analysis
The Japan Motor Insurance Market size in terms of direct written premiums value is expected to grow from USD 54.69 billion in 2024 to USD 64.67 billion by 2029, at a CAGR of 3.41% during the forecast period (2024-2029).
The market is expected to grow over the next few years because more people are buying cars, more businesses are using artificial intelligence (AI), and other factors.
Due to the global outbreak of COVID-19, motor insurance in Japan was severely impacted due to the low sale of automobiles. Though the sector can hold itself in the digital space, it remains the most affected as far as the whole motor insurance business is concerned. The worst impact of the pandemic was on the dealers and offline insurers, as vehicles could not be bought or sold due to the lockdown.
In Japan, net premiums for mandatory auto insurance (CALI) were about USD 6.3 billion in the fiscal year 2021. This was the lowest amount in a decade. Net premiums written for voluntary car insurance reached nearly USD 41.1 billion. Motor insurance may provide financial protection against car theft and damage triggered by incidents other than traffic crashes, such as keying, bad weather, or natural disasters, as well as damage caused by colliding with stationary objects.
Japan Motor Insurance Market Trends
Increase in Motor Vehicles
In 2021, 82.08 million motor vehicles were anticipated to be in use in Japan, continuing the series of record registration numbers. The main driver of this increase was the number of passenger cars registered. As of March 31, 2022, approximately 70.12 million passenger cars were on Japan's streets, up from about 58.73 million in 2012. The total number of motor vehicles in use, including motorcycles and similar vehicles, reached over 78.4 million in 2022.
People all over the world know that Japan's population is getting older and smaller every year.Nevertheless, the number of vehicles in use is growing. One justification for this can be found on the demand side of the market. While the typical household size has decreased, the number of households has continued to grow. Furthermore, supply has adjusted to the Japanese market with affordable small and lightweight vehicles.
But the change in population is likely to cause the number of vehicles to go down sooner or later as registrations are canceled and fewer are given out. This process could be improved because households, especially in cities, are less likely to buy their own cars. As a substitute, the market for shared vehicle use is expected to increase.
Government Focus On Technology Innovations
Non-life insurance companies gather big data for use in marketing and pricing. They are also hastening their operations by using AI (artificial intelligence) to assess claims payment and customer service functions such as call centers. The rising number of digital distribution channels is encouraging insurers to offer easier access to insurance policies. Insurtech, messaging platforms, and online sales channels are conducive to the insurance landscape in the country.
Through different distribution channels, insurance companies in Japan provide a wide variety of products with differing levels of complexity that are designed for different groups of businesses, individuals, and other organizations. This will offer ways to meet the emerging demands of every end-use customer and propel net sales.
Local market players in the country are focusing on marketing their competitive edge by rolling out more plans personalized for diverse sectors and developing more innovative digital features.
Furthermore, AI (artificial intelligence) is expected to carry out primary judgment in the region of insurance sales, underwriting, and payment of claims in the future. The term "fintech," which has just come into common use, is also used in the insurance industry. The insurance industry has also adopted the term "Insurtech" to refer to the fusion of insurance and information technology for developing insurance products and encouraging innovation in non-life insurance companies' operations.
Japan Motor Insurance Industry Overview
The main companies in the Japanese motor insurance market are covered by the research. Because the top three competitors control most of the market share, the market is consolidating. The market is anticipated to expand throughout the forecast period as a result of rising motor sales, industry adoption of artificial intelligence (AI), and other reasons.
Japan Motor Insurance Market Leaders
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TOKIO MARINE & NICHIDO FIRE INSURANCE CO., LTD.
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SOMPO JAPAN NIPPONKOA INSURANCE INC.
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MITSUI SUMITOMO INSURANCE COMPANY, LIMITED
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AIOI NISSAY DOWA INSURANCE COMPANY, LIMITED
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RAKUTEN GENERAL INSURANCE CO., LTD.
*Disclaimer: Major Players sorted in no particular order
Japan Motor Insurance Market News
- August 2022: Tokio Marine & Nichido Fire Insurance Co. Ltd (TMNF) and JEPLAN Inc. announced that they formed a financial and commercial collaboration. In order to advance a circular economy, they seek to create new insurance services and products.
- August 2022: Tokio Marine & Nichido Fire Insurance Co. Ltd (President Shinichi Hirose) will start selling Earthquake Insurance "EQuick" Amazon Gift Card Edition* from August 2022. The insurance product provides a fixed payout based on seismic intensity and can be purchased utilizing Amazon.co.jp accounts.
Japan Motor Insurance Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Bargaining Power of Buyers
4.4.2 Bargaining Power of Suppliers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitutes
4.4.5 Intensity of Competitive Rivalry
4.5 Insights on Various Regulatory Trends Shaping Motor Insurance Market
4.6 Insights on Impact of Technology and Innovation in Operation in the Motor Insurance Market
4.7 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Insurance Coverage
5.1.1 Third-party Liability
5.1.2 Comprehensive
5.2 By Distribution Channel
5.2.1 Agents
5.2.2 Brokers
5.2.3 Direct
5.2.4 Online
5.2.5 Other Distribution Channels
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration and Overview
6.2 Company Profiles
6.2.1 Tokio Marine & Nichidio Fire Insurance Co. Ltd.
6.2.2 Sompo Japan Insurance
6.2.3 Mitsui Sumitomo Insurance Group
6.2.4 Aioi Nissay Dowa Insurance Company, Limited
6.2.5 Rakuten General Insurance Co., Ltd.
6.2.6 AXA General Insurance Co. Ltd.
6.2.7 Secom General Insurance Co., Ltd.
6.2.8 Mitsui Direct General Insurance Co., Ltd.
6.2.9 Zurich Insurance Company
6.2.10 AIG General Insurance Company*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
Japan Motor Insurance Industry Segmentation
A vehicle insurance policy is a legally required document provided by an insurance provider to limit public responsibility and safeguard the public from potential road accidents. Every driver who owns a car is required by law to obtain automobile insurance coverage. This report offers a detailed analysis of the Japanese motor insurance market. It provides insight into the market dynamics, emerging trends in the segments and regional markets, and insights into various product and application types. Also, it studies the key players and the competitive landscape in the Japanese motor insurance market. The Japanese motor insurance market is segmented by type (third-party liability and comprehensive) and distribution channel (agents, brokers, direct, online, and other distribution channels). The report offers market sizes and forecasts in value (USD million) for all the above segments.
| By Insurance Coverage | |
| Third-party Liability | |
| Comprehensive |
| By Distribution Channel | |
| Agents | |
| Brokers | |
| Direct | |
| Online | |
| Other Distribution Channels |
Japan Motor Insurance Market Research FAQs
How big is the Japan Motor Insurance Market?
The Japan Motor Insurance Market size is expected to reach USD 54.69 billion in 2024 and grow at a CAGR of 3.41% to reach USD 64.67 billion by 2029.
What is the current Japan Motor Insurance Market size?
In 2024, the Japan Motor Insurance Market size is expected to reach USD 54.69 billion.
Who are the key players in Japan Motor Insurance Market?
TOKIO MARINE & NICHIDO FIRE INSURANCE CO., LTD., SOMPO JAPAN NIPPONKOA INSURANCE INC., MITSUI SUMITOMO INSURANCE COMPANY, LIMITED, AIOI NISSAY DOWA INSURANCE COMPANY, LIMITED and RAKUTEN GENERAL INSURANCE CO., LTD. are the major companies operating in the Japan Motor Insurance Market.
What years does this Japan Motor Insurance Market cover, and what was the market size in 2023?
In 2023, the Japan Motor Insurance Market size was estimated at USD 52.89 billion. The report covers the Japan Motor Insurance Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Japan Motor Insurance Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Japanese Motor Insurance Industry Report
Statistics for the 2024 Japanese Motor Insurance market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Japanese Motor Insurance analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
