Japan's General Insurance Market to Reach $102.6B by 2030 Driven by Motor and Property Lines
Japan's general insurance industry is projected to reach a gross written premium (GWP) value of approximately $102.6 billion (JPY14.5 trillion) by 2030.
This growth corresponds to a compound annual growth rate (CAGR) of 3% between 2025 and 2030, driven largely by robust demand in motor insurance and increasing premium rates. The market is expected to see an annual growth rate of 3.7% in 2025, supported by factors including recovery in motor insurance demand, digitization initiatives, and elevated losses from natural catastrophes.
Motor, property, and liability insurance sectors will comprise about 82.7% of Japan's general insurance GWP in 2025, underscoring their dominance within the market. Price adjustments, particularly premium increases in motor and property insurance lines, are significant contributors to market expansion. Over the last decade, insurance premiums have been revised five times to address challenges such as frequent natural disasters and rising incidences of fraudulent claims.
Fire insurance premiums, in particular, are forecasted to rise by 30-35% in 2025, influenced by mandatory fire insurance requirements for households with mortgages in Japan. This regulatory necessity is expected to bolster property insurance growth from 2025 through 2030. The persistent occurrence of natural catastrophes maintains pressure on insurers to adjust rates upward, sustaining rate momentum across property and motor segments.
Japan's general insurance market benefits from a conducive regulatory environment alongside macroeconomic factors such as economic expansion, declining inflation rates, and an end to negative interest rate policies. These conditions collectively support a positive growth trajectory for the sector over the coming five years.
Overall, the market outlook emphasizes continued premium growth and increased policy demand, with digital transformation also playing a role in enhancing operational efficiencies and customer engagement within the industry.