Japan’s life insurance market is expected to boom despite recent difficulties, according to GlobalData. Gross written premium (GWP) is forecast to grow at an average annual rate of 5.4 per cent through 2030. After a contraction in 2024, the insurance market is gowth remain slow in 2025. Finally, it is expected to improve in 2026. With a reach of about $266 billion in 2025 and an increase to around $338 billion by 2030.
Market growth is expected to be driven by high interest rates on new life insurance policies, improved capital management, increased use of reinsurance, and growth in digital sales channels.
Katam Prasanth, insurance analyst at GlobalData, said that “Stronger sales of yen-denominated life policies have offset weakness in foreign-currency products, supporting topline stability into 2025 and establishing a stronger base for 2026”. Rising returns on Japanese government bonds have also affected insurers’ investment strategies.
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Long-term bond yields on the 40-year JGB have risen from 3.34% in January to 3.56% as of 25 November 2025, following the government’s increase in bond issuance to fund a $135 billion economic stimulus package. Prasanth said some insurers are utilising hold-to-maturity accounting for part of their bond portfolios. This strategy helps them mitigate market volatility, allowing them to offer more suitable interest rates.
