Online Insurance in Japan: Seeking Avenues for Greater Growth

by KyongSun Kong, October 18, 2013
Industry Trends
Asia-Pacific

Abstract

Online distribution of insurance in Japan continues to grow, but only accounts for a small fraction of the nation’s insurance industry. However, growth in online sales is poised to outpace the industry as a whole.

In the report Online Insurance in Japan: Seeking Avenues for Greater Growth, Celent analyzes the current state and potential of the online channel in Japan’s insurance industry. This analysis is accompanied by a detailed analysis of salient characteristics and trends in the online insurance channel.

Income from online life insurance premiums increased from 2007 to 2011 by a CAGR of 105.9%, compared to 5.3% for the life insurance industry as a whole. Meanwhile, net premium income among online non-life insurers grew at a 6.0% CAGR versus a 1.2% drop for the industry.

There are several key factors driving the rapid growth in online insurance:

  • Easy-to-understand branding.
  • Simplified product design.
  • Low-priced products with high-quality services.
  • Consumer comparison and selection of products.
  • Products that meet customer needs.

“To maintain growth moving forward, the online channel will have to move beyond emphasizing ease of use and accessibility,” says KyongSun Kong, Analyst with Celent's Asian Financial Services Group and author of the report. “Insurers will need to work on creating an environment that fosters trust and a sense of security among consumers.”

This report features an in-depth analysis of insurer case studies detailing online insurance sales, as well as the factors driving growth in this channel.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

Japan’s Insurance Market: by the Numbers

3

Online Insurance Initiatives by Sector

7

 

Definitions of Terms

7

 

Online Insurers in Japan

7

 

Online Insurer Growth

9

Growing Selection of Online Insurance Offerings

15

 

Choinori Insurance

16

 

Kazoku e no Insurance

17

 

Kachitto Shushin Gan

18

 

Pet Insurance

19

 

Mitsui Direct General Insurance Facebook Page

19

Preconditions for Online Channel Growth

21

 

Easy-to-Understand Branding

21

 

Simple Product Design

21

 

Low-Priced, High-Quality Services

22

 

Customers Can Compare and Choose

22

 

Products Structured to Meet Customer Needs

22

 

Enhanced Communication

22

Conclusion

24

Leveraging Celent’s Expertise

25

 

Support for Financial Institutions

25

 

Support for Vendors

25

Related Celent Research

26

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