Page 17 - The Insurance Times September 2022

Japan general insurance momentum from 2023 onwards sup- loss of more than $2.5 billion. The high
ported by growth in all major insur- frequency of Nat-Cat events will sup-
market to reach $133.1 bil-
ance lines.” port the growth of property insurance
lion in 2026, driven by Motor insurance is the leading insur- which is forecasted to grow at a CAGR
of 4.9% over 2021-26.
commercial insurance de- ance line in Japan’s general insurance
segment, accounting for a 50.5%
mand
share, in terms of GWP in 2021. It reg- Augmented reality will be
The general insurance market in Japan istered a decline in premium since the
invaluable to insurers in
will grow at a compound annual onset of the Covid-19 pandemic as fre-
growth rate (CAGR) of 3.0% from quent lockdowns impacted vehicle the post-pandemic world
JPY11,155.4 billion ($101.6 billion) in sales. This trend is expected to con- With augmented reality (AR) set to
2021 to JPY12,920.7 billion ($133.1 bil-
tinue in 2022 as global automobile chip become a $152 billion market by 2030,
lion) in 2026, in terms of gross written shortage and rising inflation will im- its use cases for the insurance sector
premiums (GWP), driven by a rise in pact vehicle sales. The segment is ex- are only growing, according to
demand for commercial insurance
pected to witness a gradual recovery GlobalData. The leading data and
lines, forecasts GlobalData, a leading from 2023. analytics company notes that the
data and analytics company. technology’s demand among insurers
Ansari adds: “Reduction in the pre-
According to GlobalData, increased has been catalyzed by COVID-19 and
mium rates for the mandatory motor
frequency of Natural-Catastrophic third party liability (MTPL) insurance the need for remote inspections.
(Nat-Cat) events, cyber-attacks, and will also impact premium growth in GlobalData’s report ‘Augmented Real-
geopolitical risks will drive demand for
motor insurance. The rates were re- ity (AR) in Insurance’ reveals insurers’
commercial insurance lines such as duced in April 2021 by the General In- growing demand for AR technology to
property and liability insurance.
surance Rating Organization of Japan combat challenges to the sector such
Shabbir Ansari, Senior Insurance Ana- as the number of road accidents de- as COVID-19, climate change, and
lyst at GlobalData, comments: “The clined by a CAGR of 12.7% during the rapid digitalization among younger
Japanese general insurance industry is last five years.” generations.
expected to grow by 1.1% after regis-
Property insurance was the second Amrit Dhami, Associate Analyst at
tering a slower growth of 0.4% in 2021. largest segment, accounting for a GlobalData, comments: “The COVID-
The slow growth can be primarily at-
25.5% share in terms of GWP in 2021. 19 pandemic has required insurers to
tributed to a decline in motor insurance Japan is prone to frequent Nat-Cat start using AR technology in the form
which accounts for over 50% of general events like earthquakes and volcanic of AR-enabled inspections as a service
insurance premiums. The general in-
eruptions. In February 2021, an earth- platforms. These allow insurers to
surance industry is expected to gain quake in Fukushima caused an insured carry out in-depth remote inspections.

The Insurance Times, September 2022 17