Long-term contraction of the life insurance market due to the declining birthrate and aging population, and demand related to longevity risk
First written in FY2022. 4 of 9 entries say "Advanced", first in FY2024-Q1. Latest entry: 2026-10-15.
The whole theme swung hardest in 2024: 3 of 7 companies on the "Worse" side.
0 other companies' latest entry also says "Advanced".
- 2026-10-15AdvancedEarnings
「The amount of individual annuity insurance contracts in force reached ¥107.8333 trillion, or 102.9% of the prior-year level. Interest in future asset formation and retirement funding remains high, and demand for asset formation using a range of financial products is expanding.」
Growth in individual annuity insurance contracts in force is cited as evidence of expanding demand for retirement funding and asset formation. - FY2025WorsenedAnnual report
「In the insurance industry, the number of new individual annuity contracts declined slightly year on year. Meanwhile, the household penetration rate for medical insurance among households of 2 or more people was 95.1%, indicating a very high level of demand for medical coverage.」
While individual annuities, one category of products related to retirement funds and asset building, declined slightly, the 95.1% penetration rate for medical coverage remained high, showing differences in demand across product areas. - FY2024AdvancedAnnual report
「In financial markets, following the Bank of Japan's lifting of negative interest rates in March 2024 and its announcement of an additional rate hike in July 2024, major life insurers raised the assumed interest rates on savings and investment products, followed by some banks raising deposit and various loan rates. The shift in personal financial assets from savings to investment remained firm throughout the year, and the insurance industry continued to perform well, with the number of new individual annuity contracts reaching 126.0% of the previous year's level for the cumulative period from April to September 2024, although the pace of growth moderated from the previous year.」
The disclosure reports higher assumed interest rates following changes in monetary policy and demand for individual annuities, with new contracts at 126.0% of the previous year's level. - FY2024-Q2AdvancedAnnual report
「In the life insurance industry, major life insurers moved to revise product designs, including raising the assumed interest rates on savings and investment products such as individual annuities and single-premium whole life insurance. The shift in personal financial assets from savings to investment remained firm during the cumulative second-quarter period, and the insurance industry also continued to perform well, with the number of new individual annuity contracts reaching 132.5% of the previous year's level for the cumulative period from April 2023 to March 2024.」
Against the backdrop of monetary policy normalization, assumed interest rates on individual annuities and other products have been raised and product designs revised. Demand for products related to longevity risk and asset building has continued at 132.5% of the previous year's level. - FY2024-Q1AdvancedAnnual report
「The insurance industry also continued to perform well, with new individual annuity contracts, a savings and investment product, reaching 126.1% of the prior-year level for the cumulative period from April 2023 to January 2024.」
The Company reports new market data showing demand for individual annuities related to longevity risk and retirement funds at 126.1% of the previous year's level. - FY2023RestatedAnnual report
「Customer needs are shifting from products that provide protection against unforeseen events, such as death protection, to products that take longevity risk into account and provide for life in retirement.」
The Company has reconfirmed its view that demand for products providing for retirement and longevity risk will continue. - FY2023-Q2RestatedAnnual report
「Intentions to prepare for retirement security have increased across all age groups, and demand for insurance to provide security in retirement is expected to continue.」
The Company has reconfirmed its view that intentions to prepare for retirement security are increasing across all age groups and that demand for insurance related to longevity risk will continue. - FY2023-Q1RestatedAnnual report
「In this industry, demand for high-value death insurance has declined, while the number of policies for third-sector products such as medical insurance has remained firm, making them the main products currently sold. Demand for individual annuities to prepare for longevity risk has also increased, with new contracts for the period from April to December 2022 rising 19.9% year on year to 732,000, a significant increase (Source: The Life Insurance Association of Japan, “Life Insurance Business Overview: Monthly Statistics for December 2022”).」
The Company has reconfirmed the market shift in demand from high-value death insurance to third-sector products and individual annuities, as well as rising demand for products related to longevity risk. - FY2022First statedAnnual report
「First, the market size of the life insurance industry is expected to trend downward over the long term due to the effects of the declining birth rate and aging population. Against a backdrop of rising needs for protection against illness and injury associated with aging, long-term care and funds for retirement, so-called longevity risk is increasing. Accordingly, demand is growing for insurance products providing benefits during life, such as medical, pension and long-term care insurance.」
The Company identifies the contraction of the market due to the declining birth rate and aging population as a long-term business environment risk, separate from a short-term market recovery.