Japan Insurance Industry – Governance, Risk and Compliance

The FSA was established by the Financial Reconstruction Commission of Japan (FRC) in July 2000, in order to maintain stability in the industry and provide protection to policyholders. The Japan insurance industry research report provides a detailed analysis of the insurance regulations for life, property, motor, liability, personal accident and health, and marine, aviation, and transit insurance. The report specifies various requirements for the establishment and operation of insurance and reinsurance companies and intermediaries. The report also gives insurers access to information on prevailing insurance regulations, and recent and upcoming changes in the regulatory framework, taxation, and legal system in the country. The report also includes the scope of non-admitted insurance in the country.

Japan Insurance Market Dynamics

According to Article 3 of the Act, any individual or entity intending to provide insurance policies may conduct business only after obtaining a license from the Prime Minister of Japan. The Insurance Business Act permits direct life and non-life insurers to underwrite respective reinsurance businesses. Intermediaries are required to obtain a license from the LFB in order to mediate insurance products in the country.

Japan Insurance Industry License Types

The LFB provides licenses to intermediaries. Insurers are only permitted to operate within those classes for which they have been granted a license. Life insurance license, non-life insurance license, third-sector insurance license – including a personal accident, long-term care, and health insurance license, SASTI provider license, and licenses for intermediaries, including insurance agents and brokers are some of the key types of insurance licenses in Japan.

Key Bodies Overseeing the Japan Insurance Industry

The key bodies that oversee the Japan insurance industry are the Financial Services Agency (FSA), International Association of Insurance Supervisors (IAIS), General Insurance Association of Japan (GIAJ), and Life Insurance Association of Japan (LIAJ).

Financial Services Agency (FSA): The Prime Minister of Japan assigned most of the insurance regulatory responsibilities to the FSA (www.fsa.go.jp). The FSA is responsible for the supervision of any kind of insurance operation, but not the issuance of licenses. The Prime Minister of Japan is accountable for issuing or revoking licenses of insurance or reinsurance companies.

Local Finance Bureau of the Ministry of Finance (LFB): The FSA transferred some important regulatory responsibilities to directors of the LFB to regulate insurance and reinsurance companies in Japan. The LFB is responsible for providing licenses to SASTI providers to operate insurance businesses locally.

International regulatory authority (IAIS): The IAIS (www.iaisweb.org), established in 1994, is a membership-driven global organization that represents insurance regulators and supervisors of more than 200 jurisdictions in more than 140 countries. The IAIS formulates and issues various global insurance principles, standards, and guidance, provides training and support on issues related to insurance supervision, and organizes meetings and seminars for insurance supervisors.

General Insurance Association of Japan (GIAJ): GIAJ (www.sonpo.or.jp) was established as the Marine and Fire Insurance Association of Japan on April 1, 1946. GIAJ represents licensed general insurers in Japan and aims to promote sound development and maintain stability in the country’s general insurance business.

Life Insurance Association of Japan (LIAJ): LIAJ (www.seiho.or.jp) started operations as an incorporated association on December 7, 1908, and took its current name in 1945. LIAJ represents all licensed life insurers in the country and aims for the sound development of the life insurance industry and the maintenance of its reliability.

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Market Report Overview

Scope

This report provides:

• Details of the insurance regulatory framework in Japan.
• Details of the rules and regulations governing insurance products and insurance entities.
• Lists and analysis of key trends and developments pertaining to the country’s insurance regulatory framework.
• Analysis of the rules and regulations pertaining to the establishment and operation of insurance businesses in the country.
• Details of the taxation imposed on insurance products and insurance companies.
• The latest key changes and changes expected in the country’s insurance regulatory framework.
• Key regulations and market practices related to different types of insurance products in the country.
• Rules and regulations pertaining to key classes of compulsory insurance and the scope of non-admitted insurance in the country.
• Key parameters including licensing requirements permitted foreign direct investment, minimum capital requirements, solvency and reserve requirements, and investment regulations.
• Details of the tax and legal systems in the country.

Reasons to Buy

• Provides FAQ-style analytical insights comprising 129 knowledge elements on insurance compliance applicable to the country.
• Gain insights into the insurance regulatory framework in Japan.
• Track the latest regulatory changes and expected changes impacting the Japan insurance industry.
• Gain detailed information about the key regulations governing the establishment and operation of insurance entities in the country.
• Understand key regulations and market practices about various types of insurance product.