Japan’s commercial insurance market remains in a hardening phase, as major domestic property and liability insurers implement new risk and limit policies. Shinichi Kandatsu, Head of Commercial Risk Solutions at Aon Japan, stated that these measures aim to ensure profitability and improve risk assessment.
Overall pricing continues to rise, although the pace of property rate increases has slowed. Directors and officers insurance recorded a slight decline, while cyber insurance rates remain stable.
Capacity remains tight for property and liability lines, prompting insurers to reassess their risk appetite. Deductibles continue to rise, and reductions in coverage limits are now more common. Some domestic insurers are introducing new exclusions for punitive damages, terrorism, and earthquake risks.
As a result, many clients are increasingly turning to foreign insurers for alternative coverage, particularly in property and liability lines, where domestic firms are attempting portfolio diversification.
Japan Commercial Insurance – Risks & Pricing
| Topic | Details |
|---|---|
| Market Status | Strong and Hardening |
| Pricing Trend | Increasing; property rate rises slower |
| Exceptions | Directors & officers slightly declined; cyber stable |
| Limit Reductions | Common for large property & liability placements |
| Deductibles | Rising; other classes stable |
| New Exclusions | Punitive damages, terrorism, earthquake risk |
| Client Trends | Seeking foreign alternative coverage |
| Capacity | Limited for property & liability; sufficient for other lines |
AJ
Source- InsuranceAsia