F A C T B O O K 2 0 2 2 – 2 0 2 3
FACT BOOK

GENERAL INSURANCEIN JAPAN

THE GENERAL INSURANCE ASSOCIATION OF JAPANF A C T B O O K 2 0 2 2 – 2 0 2 3

GENERAL INSURANCEIN JAPAN

THE GENERAL INSURANCE ASSOCIATION OF JAPANWEB

Information is also available on the GIAJ’s website.

https://www.sonpo.or.jp/en/

CONTENTS
Page

I. Key Figures of General Insurance for Fiscal 2022
1. The Number of General Insurance Companies ........................................................................................... 4
2. Premiums Written .......................................................................................................................................... 4
3. Amount of Claims Paid ................................................................................................................................. 5
4. Loss Ratio and Operating Expense Ratio ..................................................................................................... 5
5. Assets and Investments ................................................................................................................................. 6
6. Ordinary Profits and Net Profits for the Current Year ................................................................................. 6
7. The Number of Agents and Sales Staff of Agents ...................................................................................... 7
8. Ownership of General Insurance Policies ..................................................................................................... 7

II. Statistics
1. Income Statement .......................................................................................................................................... 8
2. Abridged Balance Sheet ................................................................................................................................ 9
3. Direct Premiums Written by Line ................................................................................................................ 10
4. Net Premiums Written by Line .................................................................................................................... 11
5. Direct Claims Paid by Line ........................................................................................................................... 11
6. Net Claims Paid by Line ............................................................................................................................... 11
7. International Comparison of General Insurance Premium Volume (2021) ............................................. 12
8. General Insurance Business of Overseas Consolidated Subsidiaries ....................................................... 13
9. International Reinsurance Business ............................................................................................................ 13
10. Member Companies Offices Abroad (as of April 1 each year) ................................................................ 14
11. Claim Payments for Natural Disasters ........................................................................................................ 15

III. Market Information
1. Main Laws concerning General Insurance ................................................................................................. 16
Column Financial services intermediary business .................................................................................. 20
		

2. Catastrophe Loss Reserves .......................................................................................................................... 21
3. Residential Earthquake Insurance ............................................................................................................... 22
4. CALI Investment Income Contribution Program ....................................................................................... 23
5. Policyholders Protection System ................................................................................................................. 24
6. Responses to Consultations, Complaints and Disputes ........................................................................... 26
7. Education and Examinations, etc. for Insurance Solicitors ....................................................................... 29

Page
8. Tests and Training Related to Claims Settlement ...................................................................................... 31
9. Medical Education Institute for Insurance Adjusters ................................................................................ 32
10. Information Exchange Systems ................................................................................................................... 33
Column Efforts for protecting personal information ............................................................................ 34		

11. International Business .................................................................................................................................. 35
Column Insurance School (Non-Life) of Japan, ISJ ................................................................................ 36		Column Global Federation of Insurance Associations (GFIA) ............................................................... 36		Column ASEAN Insurance Council (AIC) ................................................................................................ 36
		

IV. Outline of the General Insurance Association of Japan
1. History ........................................................................................................................................................... 37
2. Objective ....................................................................................................................................................... 37
3. Major Activities ............................................................................................................................................. 37
4. Organization (as of July 1, 2023) ............................................................................................................... 38
5. Overview of the 9th Mid-Term Business Plan (2021-2023) ..................................................................... 39
6. Guidelines, etc. ............................................................................................................................................. 40
Column Principal initiatives to achieve SDGs ......................................................................................... 43		Column “Position Statement on Climate Change” published by the GIAJ ........................................ 43
		

V. Directory
1. Licensed Domestic Companies (33 Companies as of Nov. 1, 2023) ....................................................... 44
2. Licensed Foreign Companies (22 Companies as of Nov. 1, 2023) .......................................................... 45
3. General Insurance Organizations (as of Nov. 1, 2023) ............................................................................. 45III
I

Key Figures of General Insurance
Statistics
for Fiscal 2022

1 The Number of General Insurance Companies
Total:
Domestic insurers:
Foreign insurers:

55
33
22

As of Nov. 1, 2023, a total of 55 general insurance companies
were operating in Japan. A total of 33 companies were licensed
as domestic insurers, including foreign capital domestic insurers,
while 22 companies were licensed as foreign insurers.
The number of people working in general insurancecompanies, including management, sales staff and temporary
staff, was 84,808 as of April 1, 2023. (This figure is the total
for GIAJ member companies.)
Domestic
insurers

Foreigninsurers

Operating direct and reinsurance
business

31

10

Operating reinsurance business
only

2

6

Operating P & I business

-

6

Total

33

22

Type of insurer
Domestic insurers: Licensed as domestic
insurers
Foreign capital domestic insurers: Licensed
as domestic insurers, which operate withforeign capital of 50% or more
Foreign insurers: Licensed on a branch or
agency basis

2 Premiums Written
Direct premiums written:

9,959.3 billion yen

Net premiums written:

9,119.5 billion yen

While the total direct premiums written in fiscal 2022,
including the savings portion thereof, amounted to 9,959.3
billion yen (up 3.0% mostly due to an increase in fire
insurance), the total net premiums written came to 9,119.5
billion yen (up 3.6%), mainly due to an increase in firepremiums. (These figures are the totals for GIAJ member
companies.)■ Direct premiums written
2021

Direct premiums written: gross direct
premiums (including the savings portion of
maturity-refund type insurance premiums) –various returns other than maturity refunds(including return premiums for cancellation,
no claim returns, and return premiums
resulting from the decrease of insurable risks)Net premiums written: direct premiums
written + inward reinsurance net premiums –outward reinsurance net premiums – savings
portion of maturity-refund type insurance
premiums

4

I. Key Figures of General Insurance for Fiscal 2022

2022

9,670.9 billion yen

9,959.3 billion yen■ Net premiums written
2021

2022

8,806.3 billion yen

9,119.5 billion yen

3 Amount of Claims Paid
Net claims paid:

Net claims paid during fiscal 2022 amounted to 5,383.0

5,383.0 billion yen

billion yen, an increase of 14.3% compared with the previous
term. This increase was mainly due to fire insurance claim
payments following Typhoon No.14 (Nanmadol) and Typhoon
No.15 (Talas), and a recovery in traffic volume and resultant
automobile insurance claim payments. (These figures are thetotals for GIAJ member companies.)

Net claims paid: direct claims paid + inward
reinsurance net claims paid – outward reinsurance claims received■ Net claims paid
2021

4,711.2 billion yen

2022

5,383.0 billion yen

4 Loss Ratio and Operating Expense Ratio
Loss ratio:

The loss ratio increased by 5.6 percentage points to 64.9%

64.9%

Operating expense ratio:

32.6%

mainly due to the increase in net claims paid. While agency
commissions and brokerage fees increased, the operating
expense ratio decreased by 0.3 percentage points to 32.6%
due to a significant increase in the amount of net premiums
written compared to the previous year. (These figures are thetotals for GIAJ member companies.)■ Loss ratio / Operating expense ratio
Loss ratio: The ratio of claims paid + loss
adjustment expenses to net premiums written
Operating expense ratio: The ratio ofagency commission and brokerage + operating
and general administrative expenses onunderwriting to net premiums written

Loss ratio

59.3%

64,9%

Operating
32.9%
expense ratio

32.6%

2021

2022

I. Key Figures of General Insurance for Fiscal 2022

5

5 Assets and Investments
Total assets:

31,749.0 billion yen

Working assets:

28,338.4 billion yen

Total assets: The total of working assets andother assets (such as amounts due from theagency business, amounts due from otherdomestic insurance companies forreinsurance, etc.)
Working assets: The total of deposits, callloans, monetary receivables bought, money
trusts, securities, loans, real estate, etc.

Total assets decreased by 2.5% to 31,749.0 billion yen due
to a decrease in the amount of securities and deposits.
Working assets also decreased by 3.3% to 28,338.4 billion yen.
(These figures are the totals for GIAJ member companies.)■ Total assets
2021

32,564.3 billion yen

2022

31,749.0 billion yen■ Working assets
2021

29,310.6 billion yen

2022

28,338.4 billion yen

6 Ordinary Profits and Net Profits for the Current Year
Ordinary profits:766.5 billion yen

Net profits:

501.5 billion yen

Ordinary profits for fiscal 2022 decreased to 766.5 billion
yen, which is 124.5 billion yen less than the previous year. In
addition, net profits for the current year decreased to 501.5
billion yen, down by 169.2 billion yen compared to theprevious year. (These figures are the totals for GIAJ member
companies.)■ Ordinary profits

Ordinary profits: The total of (underwriting
income – expenses) + (investment income –expenses) – other ordinary expenses
Net profits: The total of ordinary profits
including special profits or losses minus
corporate income taxes, corporate resident
taxes, etc.

6

I. Key Figures of General Insurance for Fiscal 2022

2021
2021

891.0 billion yen
891.0 billion yen

2022
2022

766.5 billion yen
766.5 billion yen■ Net profits
2021
2021

670.8 billion yen
670.8 billion yen

2022
2022

501.5 billion yen
501.5 billion yen

7 The Number of Agents and Sales Staff of Agents
Agents(at the end of fiscal 2022):

156,152

Agent sales staff(at the end of fiscal 2022):

1,845,354

General insurance agent: A generalinsurance agent is commissioned by aninsurance company, and sells insurance
products to customers.
In Japan, an “agent(s)” can refer to both anindividual and a company/organization.

The number of agents decreased by 2.7%, and the numberof agent sales staff decreased by 7.9%.
There were 156,152 general insurance agents of domestic
and foreign general insurers and 1,845,354 sales staff were
engaged in the insurance sales at the end of fiscal 2022.
The direct premium written through these agents occupied
90.5% of the total direct premiums written in fiscal 2022.
■ The number of agents
2021

160,4632021

160,4632022

156,1522022

156,152■ The number of agent sales staff
2021

2,003,511

2021

2,003,511

2022

1,854,354

2022

1,854,354

8 Ownership of General Insurance Policies
Earthquake:

35.0%(at the end of 2022)

Voluntary Automobile(bodily injury liability):

75.4%

Ownership of Earthquake Insurance on Dwelling Risks
represents the ratio of the number of earthquake insurance
policies to the number of households on the Basic Resident
Register in Japan.
■ Ownership by line
Earthquake(at the end of fiscal 2021)

Voluntary Automobile(property damage liability):

75.5%(at the end of fiscal 2021)

35.0%

Voluntary Automobile(bodily injury liability)

75.4%

Voluntary Automobile(property damage liability)

75.5%■ Ratio of residential fire insurance policyholders who opted to
add earthquake insurance to their cover in fiscal 2022: 69.4%■ Ownership of Earthquake Insurance on Dwelling Risks Policies
Nationwide

2018

2019

2020

2021

2022

32.2%

33.1%

33.9%

34.6%

35.0%

Source: General Insurance Rating Organization of Japan.
The data of cooperative (mutual aid) is not included.

■ Ownership of Voluntary Automobile Insurance
Fiscal Year

2017

2018

2019

2020

2021

Bodily Injury Liability
Property Damage
Liability
Passengers’ Personal
Accident
Physical Damage
Bodily Injury Indemnity

74.6%

74.8%

75.0%

75.1%

75.4%

74.7%

74.9%

75.1%

75.3%

75.5%

26.7%

26.3%

25.8%

25.4%

25.1%

44.4%
69.3%

45.1%
69.8%

45.7%
70.2%

46.2%
70.6%

46.5%
71.0%

Source: General Insurance Rating Organization of Japan.
The data of cooperative (mutual aid) is not included.

I. Key Figures of General Insurance for Fiscal 2022

7

III
II Statistics(Note: The figures in Table 1-6 and 8-10 are the totals for GIAJ member companies.)WEB

Information is also available on the GIAJ’s website. https://www.sonpo.or.jp/en/

1. Income Statement(in billions of yen & %)Item

Fiscal 2021

Fiscal 2022

AmountAmountGrowthUnderwriting Income

9,346.6

9,952.0

6.5

Net Premiums Written

8,806.3

9,119.5

3.6

207.0

180.9

-12.6

Underwriting Expenses

7,730.8

8,504.6

10.0

Net Claims Paid

4,711.2

5,383.0

14.3

513.7

533.5

3.8

Agency Commissions and Brokerage

1,592.6

1,645.8

3.3

Maturity Refunds to Policyholders

627.1

592.5

-5.5

Net Provision for / Net Reversal of Outstanding Loss Reserves

234.2

48.0

-79.5

Net Provision for / Net Reversal of Underwriting Reserves-149.9-224.5―Investment Income

776.6

944.5

21.6

Interest and Dividends Income

553.7

655.9

18.5

Profits on Sales of Securities

268.3

335.3

25.0

Investment Expenses

118.5

212.7

79.5

Losses on Sales of Securities

18.7

69.4

271.6

Losses on Revaluation of Securities

41.6

31.9

-23.4

Operating and General Administrative Expenses

1,394.4

1,431.9

2.7

Operating and General Administrative Expenses on Underwriting

1,301.9

1,329.5

2.1

Other Ordinary Income and Expenses

11.4

19.1

68.0

Ordinary Profits

891.0

766.5

-14.0

Underwriting Profits

310.7

114.4

-63.2

Investment Profits

658.1

731.9

11.2

Special Profits and Losses Balance-21.9-111.1―

Profits for the Current Year before Corporate Taxes

869.1

655.5

-24.6

Corporate Income Taxes and Corporate Resident Taxes

233.7

86.1

-63.2

Adjustments in Corporate Income Taxes, etc.

-35.4

67.8

―

Total Income Taxes

198.3

153.9

-22.4

Net Profits for the Current Year

670.8

501.5

-25.2

Ordinary Profits and Losses

Savings Portion of Maturity-refund type Insurance Premiums

Loss Adjustment Expenses

Note: ‌Underwriting Profits = Underwriting Income - Underwriting Expenses - Operating and General Administrative Expenses on
Underwriting +/- other income and expenses

8

II. Statistics

2. Abridged Balance Sheet<Assets>

Item(in billions of yen & %)Fiscal 2021

Fiscal 2022

AmountShareAmountShare

Deposits

2,450.7

7.5

2,267.8

7.1

Call Loans

30.0

0.1

30.4

0.1

Receivables under Resales Agreements

81.0

0.2

71.0

0.2

Receivables under Securities Borrowing Transactions

0.0
0.3

―
91.4

0.0

Monetary Receivables Bought―
96.4

Money Trusts

41.7

0.1

60.5

0.2

Securities
National Government Bonds
Local Government Bonds
Corporate Bonds
StocksForeign Securities
Other Securities

24,347.0
3,578.1
364.6
2,895.3
7,006.6
9,803.1
699.2

74.8
11.0
1.1
8.9
21.5
30.1
2.1

23,442.7
3,137.4319.7
2,650.5
6,692.6
9,981.0
661.5

73.8
9.9
1.0
8.3
21.1
31.4
2.1

Loans

1,431.3

4.4

1,549.7

4.9

832.4

2.6

825.0

2.6

Real Estate

0.3

Total Working Assets

29,310.6

90.0

28,338.5

89.3

Other Assets

3,253.7

10.0

3,410.5

10.7

Total Assets

32,564.3

100.0

31,749.0

100.0

Note: ”Other Assets” consists of 1) Cash in hand, 2) Furniture and fixtures, 3) Construction in progress, 4) Amounts due fromagency business, 5) Amounts due from other domestic companies for reinsurance, 6) Customer's liability for acceptance andguarantee, 7) Deferred tax assets, and 8) Miscellaneous.

<Liabilities and Equities>
Item(in billions of yen & %)Fiscal 2021

Fiscal 2022

AmountShareAmountShare

Underwriting Reserves
Outstanding Loss Reserves
Technical Provision
OthersOther Liabilities

19,560.0
4,075.8
15,484.2

60.1
12.5
47.5

19,373.2
4,114.6
15,258.6

61.0
13.0
48.1

4,919.2

15.1

4,667.6

14.7

Total Liabilities

24,479.2

75.2

24,040.875.7

CapitalSuspense Receipts on Capital Subscriptions
Additional Paid in Capital
Earned Surplus
Treasury Stock
Unrealized Gain on Securities, Net of Income Taxes
Deferred Gains and Losses on Hedge Transactions
Land Revaluation Excess
Share Award Rights
Share Acquisition Rights

744.5

2.3

735.0

2.3

627.5
2,646.8-4.9
4,083.9
-5.1
-7.6

1.9
8.1
-0.0
12.5
0.0
-0.0

610.5
2,689.0-4.9
3,707.3
-21.0
-7.7

1.9
8.5
-0.0
11.7
-0.1
-0.0

Total Equities

8,085.1

24.8

7,708.2

24.3

Total Liabilities and Equities

32,564.3

100.0

31,749.0

100.0

―

―
―

―

―
―

―

―
―

―

―
―

Note: ‌“Other Liabilities” consists of 1) Amounts due to other domestic insurance companies for reinsurance, 2) Accured taxes, 3)
Convertible bonds, 4) Reserves for bad debts and for retirement allowance, 5) Acceptance and guarantee, and 6)
Miscellaneous.



II. Statistics

9

3. Direct Premiums Written by LineClass of Business(in millions of yen & %)Fiscal 2019

Fiscal 2020

Fiscal 2021

Fiscal 2022

Amount Growth Amount Growth Amount Growth Amount Growth-0.3 1,928,656

8.8

15,858-10.7

0.7 4,301,292-0.1

1,704,261

8.8

1,777,201

4.3

1,772,725

Maturity-refund type51,313-29.6

22,157-56.8

17,750Voluntary Automobile

4,185,270

1.3

4,275,597

2.2

4,307,175

―

―

―

―

―

―

―

―

Personal Accident

981,8880.5

893,596-9.0

876,861-1.9

894,919

2.1

Maturity-refund type

252,230

4.7

232,319-7.9

199,434-14.2

173,725-12.9

Miscellaneous Casualty

1,548,991

4.0

1,597,324

3.1

1,655,417

3.6 1,715,700

3.6-362 -617.1

-509

―

-1,138

―

-977

―

Fire

Maturity-refund type

Maturity-refund type

-19.9

Burglary

11,764

6.7

13,31013.1

14,198

6.7

14,667

3.3

Glass

259

-8.5

254

-1.9

257

1.2

251

-2.3

Aviation

18,94734.7

15,609-17.6

15,476-0.9

18,110

17.0

―

―

―

―

―

―

―

―

Guarantee

11,476

3.6

11,346-1.1

10,890-4.0

12,38913.8

Credit36,19722.0

38,0805.2

37,564-1.4

39,467

5.1

Workers’ Accident Compensation Liability

169,363

4.9

176,277

4.1

180,908

2.6

184,478

2.0

―

―

―

―

―

―

―

―

Boiler & Turbo-set

1,854

-15.1

2,051

10.6

2,074

1.1

2,068

-0.3

Livestock

5,773

6.2

6,090

5.5

6,955

14.2

7,609

9.4

General Liability

629,300

3.7

634,3270.8

652,8972.9

680,297

4.2

Machinery & Erection

37,244

0.4

37,5740.9

36,721-2.3

36,204

-1.4

633

-2.9

607

-4.1

601

-1.0

575

-4.3

Contractors’ All Risks

57,106

8.2

58,036

1.6

57,689-0.6

56,015-2.9

Atomic Energy

3,284

-17.8

3,412

3.9

2,615

-23.4

2,770

5.9

139,8816.7

152,455

9.0

165,4128.5

175,123

5.9

―

―

―

―

―

―

―

―

359,995-2.8

371,482

3.2

384,3623.5

385,2530.2-362 -617.1

-509

―

-1,138―-977―

Windstorm & Flood

Maturity-refund type

Shipowners’ Liability for Passengers’ Personal Accident

Movables Comprehensive
Maturity-refund type
Miscellaneous Pecuniary Loss
Maturity-refund typePet

65,84626.7

76,356

16.0

86,73813.6

100,358

15.7

Marine and Inland Transit

285,614

3.4

273,997-4.1

309,095

12.8

358,251

15.9

Marine Hull

87,04517.5

84,930-2.4

89,262

5.1

106,911

19.8

Marine Cargo

125,489-5.7

114,398-8.8

142,71224.8

171,165

19.9

Inland Transit

73,076

5.8

74,667

2.2

77,1183.3

80,1734.0

8,706,060

3.2

8,817,758

1.3

8,921,313

1.2 9,198,858

3.1

965,334-0.9

809,589-16.1

749,542

760,477

1.5

9,671,394

2.7

9,627,347-0.5

9,670,855

0.5 9,959,335

3.0

303,181-3.4

253,967-16.2

216,046

188,606-12.7

SubtotalCompulsory Automobile Liability
Grand total
Maturity-refund type

-7.4
-14.9

Notes: 1. Figures include direct premiums written abroad.
2. ‌Direct Premiums Written = gross direct premiums (including the savings portion of maturity-refund type insurance premiums) - various returns other than maturity refunds (including return premiums for cancellation, no-claim returns, andreturn premiums resulting from the decrease of insurable risks)

10

II. Statistics

4. Net Premiums Written by LineClass of Business(in millions of yen & %)Fiscal 2019

Fiscal 2020

Fiscal 2021

AmountGrowthAmountGrowthAmountFire

1,280,652

8.1

1,469,280

14.7

Voluntary Automobile

4,108,878

1.3

4,188,067

1.9

AmountGrowth

1,507,141

2.6 1,692,997

12.3

4,228,750

1.0 4,240,211

0.3

675,024-1.8

620,535-8.1

631,501

Miscellaneous Casualty

1,303,537

4.4

1,333,132

2.3

1,393,092

Marine and Inland Transit
Marine Hull
Marine Cargo
Inland Transit

262,166
70,632
126,40965,122

3.4
12.6
-2.5
6.5

242,640
60,298116,737
65,599

-7.4
-14.6
-7.7
0.7

272,898
61,826
144,944
66,1257,630,303

2.7

7,853,694

2.9

8,033,432

979,1191.7

839,045-14.3

772,875

8,609,422

2.6

8,692,739

1.0

8,806,307

Personal Accident

SubtotalCompulsory Automobile
Liability
Grand total

Fiscal 2022

Growth664,300

5.2

4.5 1,457,163

4.6

312,843
73,411
170,419
69,007

14.6
18.7
17.6
4.4

2.3 8,367,560

4.2

751,914-2.7

1.3 9,119,474

3.6

1.8
12.5
2.5
24.2
0.8

-7.9

Note: Net Premiums Written = direct premiums written + inward reinsurance net premiums – outward reinsurance net premiums –savings portion of maturity-refund type insurance premiums

5. Direct Claims Paid by LineClass of Business(in millions of yen & %)Fiscal 2019

Fiscal 2020

Fiscal 2021

AmountGrowthAmountGrowthAmountFire

1,632,566-15.5

1,209,238-25.9

Voluntary Automobile

2,326,317

0.6

2,061,692-11.4

Compulsory Automobile
Liability

681,434-5.6

605,743-11.1

559,833

Personal Accident

343,054-0.3

303,013-11.7

300,847

Miscellaneous Casualty

779,58111.9

793,177

1.7

Marine and Inland Transit

170,753-10.5

135,372-20.7

5,933,742-4.3

5,108,272-13.9

4,937,470

Total

AmountGrowth1,089,891-9.9 1,289,266

18.3

2,088,152

1.3 2,310,921

10.7

-7.6

532,473

-4.9

-0.7

391,800

30.2

746,753-5.9

836,65612.0

151,953

12.2

145,458-4.3-3.3 5,506,614

11.5

6. Net Claims Paid by LineClass of Business

Growth(in millions of yen & %)Fiscal 2019

Fiscal 2020

Fiscal 2021

Fiscal 2022

AmountGrowthAmountGrowthAmount936,024-24.6

807,525-13.7

949,13917.5 1,245,448

31.2

Voluntary Automobile

2,241,147

0.0

2,024,342-9.7

2,061,877

1.9 2,293,628

11.2

Compulsory Automobile
Liability

674,375-6.4

617,746-8.4

562,726-8.9

517,727-8.0

Personal Accident

319,180-0.4

285,934-10.4

283,857-0.7

353,732

24.6

Miscellaneous Casualty

695,303

8.5

689,565-0.8

711,970

3.2

823,345

15.6

Marine and Inland Transit

160,7530.5

138,513-13.8

141,542-2.2

149,068-5.3

5,026,821-5.6

4,563,677-9.2

4,711,158

3.2 5,382,994

14.3

Fire

Total



Fiscal 2022

GrowthAmountGrowthII. Statistics

11

7. International Comparison of General Insurance Premium Volume (2021)
Country(Region)Gross Direct Premiums
GDP

Gross Direct Premiums

Per Capita Premiums(in millions of USD)

Rank

Share (%)

(%)

Rank

2,109,057

1

54.6

9.1

2

6,356

2

PR China

330,672

2

8.6

1.9

39

229

49

Germany

165,818

3

4.3

3.9

9

1,992

8

United Kingdom

114,858

4

3.0

2.2

24

1,039

23

France110,935

5

2.9

3.4

13

1,486

16

Japan

107,741

6

2.8

2.2

26

855

27

Canada96,372

7

2.5

4.8

6

2,520

5

South Korea

91,142

8

2.4

5.2

5

1,764

12

Netherlands

78,872

9

2.0

7.7

3

4,497

3

Australia

56,540

10

1.5

3.5

12

2,195

7

Italy

46,480

11

1.2

2.2

25

785

28

Spain

45,547

12

1.2

3.2

17

960

26

Switzerland

32,737

13

0.8

4.0

7

3,744

4

India

30,296

14

0.8

1.0

67

22

78

Brazil

27,855

15

0.7

1.7

49

130

60

Belgium

24,588

16

0.6

2.7

19

1,408

17

Taiwan24,364

17

0.6

3.2

16

1,032

24

Iran

23,784

18

0.6

2.0

34

280

41

Mexico17,134

19

0.4

1.3

60

131

59

Russia16,169

20

0.4

0.9

70

111

63

Other regions

312,068

―

8.1

―

―

―

―

Total/Average

3,863,029

―

100.0

3.9

―

492

―

United States

(USD)

Rank

Notes: 1. Figures are compiled by the GIAJ based on the "sigma No.4/2022" by Swiss Re.
2. Total (average) figures are the total (average) figures of 147 countries/regions in 2021.
3. Gross Direct Premiums include all premiums written by domestic and foreign companies within the country.

12

II. Statistics

8. General Insurance Business of Overseas Consolidated Subsidiaries
Net Premiums Written of Overseas Consolidated Subsidiaries

(in millions of yen)

Fiscal 2019

Fiscal 2020

Fiscal 2021

Fiscal 2022

AmountAmountAmountAmountDirect Insurers

2,313,198

2,367,785

2,935,687

3,966,846

The Americas

1,001,374

996,487

1,251,178

1,703,831

Europe/ Middle East/ Africa

999,599

1,093,932

1,386,654

1,892,610

Asia/ Oceania

312,225

277,366

297,855

370,405(Specialized) Reinsurers

222,966

226,667

284,787

370,077

2,536,168

2,594,455

3,220,479

4,336,928

Total

Net Claims Paid by Overseas Consolidated Subsidiaries

(in millions of yen)

Fiscal 2019

Fiscal 2020

Fiscal 2021

Fiscal 2022

AmountAmountAmountAmountDirect Insurers

1,219,255

1,170,543

1,346,724

1,780,798

The Americas

504,247

487,133

576,930

766,320

Europe/ Middle East/ Africa

553,747

549,627

628,951

828,525

Asia/ Oceania

161,261

133,783

140,843

185,953(Specialized) Reinsurers

123,355

132,590

148,179

188,621

1,342,615

1,303,137

1,494,908

1,969,422

Total

Note: These figures show summation data of overseas consolidated subsidiaries whose parent companies are Japanese insurers or
Japanese insurance holding companies. Offsetting internal transactions are not taken into consideration.

9. International Reinsurance BusinessOutward Reinsurance Balance
Fiscal Year(in billions of yen)
2019

2020

2021

2022

Premiums (paid)

995.3

1,037.1

1,074.1

1,149.2

Claims (received)

1,226.7

922.3

681.2

725.9

231.4

-114.8-392.9-423.3

Balance

Notes: 1. Claims (received) include reinsurance commission.
2. Figures do not include those premiums underwritten by overseas subsidiaries.

Inward Reinsurance Balance
Fiscal Year(in billions of yen)
2019

2020

2021

2022

Premiums (received)

433.0

432.1

493.9

599.6

Claims (paid)

371.6

338.1

393.1

598.2

Balance

61.4

94.0

100.8

1.4

Notes: 1. Claims (paid) include reinsurance commission.
2. Figures do not include those premiums underwritten by overseas subsidiaries.



II. Statistics

13

10. Member Companies Offices Abroad (as of April 1 each year)
Number of Member Companies Conducting Insurance Business Abroad
Number of Member Companies
Operating Abroad

2020

2021

2022

2023

5

5

5

5

2020

2021

2022

2023

43

43

43

45

2020

2021

2022

2023

211

213

210

213

Number of Countries/Regions
Number of Countries/Regions where
Member Companies are Conducting
Insurance Business Abroad

Number of Member Companies Offices Abroad
Number of Member Companies Offices
Conducting Insurance Business Abroad

Notes: 1. Insurance business refers to direct insurance and reinsurance business and excludes related business such as asset management andloss assessment.
2. Figures represent the number of member companies conducting insurance business and include cases where a company conducts its
business through both overseas subsidiaries and branches/agents of its home country head office in the same country/region.

Liaison Offices
2020

14

2021

2022

2023

Number of Member Companies with
Liaison Offices

5

5

5

5

Number of Countries / Regions

43

41

42

42

Number of Cities

85

84

84

84

Number of Offices

167

163

165

161

II. Statistics

11. Claim Payments for Natural Disasters
10 Largest Claims Paid for Typhoons and Windstorms in Japan 

Claims Paid (Including Estimates)

Name of
Disaster
1
2
3
4
5
6

(in billions of yen)

Typhoon No. 21(Typhoon Jebi)
Typhoon No. 19(Typhoon Hagibis)
Typhoon No. 19(Typhoon Mireille)
Typhoon No. 15(Typhoon Faxai)
Typhoon No. 18(Typhoon Songda)
Snowfall, Feb. 2014

7

Typhoon No. 18(Typhoon Bart)

8

Typhoon No. 24(Typhoon Trami)

9

The Heavy Rain
Event of July 201810

Typhoon No. 15(Typhoon Goni)

Place

Date

Fire and Miscellaneous
Casualty

Automobile

MarineTotal

Osaka, Kyoto,
Hyogo, etc.

Sep. 3-5, 2018

936.3

78.0

53.5

1,067.8

518.1

64.5

―

582.6

522.5

26.9

18.5

568.0

439.8

25.8

―

465.6

Oct. 6-13,
2019
Sep. 26-28,
1991
Sep. 5-10,
2019

East Japan
Nationwide
Kanto
Nationwide

Sep. 4-8, 2004

356.4

25.9

5.1

387.4

Kanto
Kumamoto,
Yamaguchi,
Fukuoka, etc.
Tokyo,
Kanagawa,
Shizuoka, etc.
Okayama,
Hiroshima,
Ehime, etc.

Feb. 2014

298.4

24.1

―

322.4

Sep. 21-25,
1999

284.7

21.2

8.8

314.7

Sep. 28-Oct. 1,
2018

294.6

11.5

―

306.1

Jun. 28-Jul. 8,
2018

167.3

28.3

―

195.6

Aug. 24-26,
2015

156.1

8.1

―

164.2

Nationwide

Notes: 1. Source: The General Insurance Association of Japan (as of March 31, 2023)
2. The figures include all insurance companies operating in Japan including foreign insurers.
3. The figure of "total" does not equal the total of individual items due to roundings.

20 Largest Claims Paid for Earthquake Insurance on Dwelling Risks
Earthquake (Region name)(in billions of yen)

Date

Claims Paid1

The 2011 off the Pacific coast of Tohoku

Mar. 11, 2011

1,289.4

2

The 2016 Kumamoto

Apr. 14, 2016

390.9

3

Fukushima-ken-oki

Mar. 16, 2022

265.4

4

Fukushima-ken-oki

Feb. 13, 2021

250.9

5

The 2018 Northern Osaka

Jun. 18, 2018

124.8

6

The 1995 Hyogo-ken Nanbu (The Great Hanshin-Awaji)

Jan. 17, 1995

78.3

7

The 2018 Hokkaido Eastern Iburi

Sep. 6, 2018

53.6

8

Miyagi-ken-oki

Apr. 7, 2011

32.4

9

Miyagi-ken-oki

Mar. 20, 2021

18.9

10

Fukuoka-ken Seiho-oki

Mar. 20, 2005

17.0

11

The 2001 Geiyo

Mar. 24, 2001

16.9

12

The 2004 Niigata-ken Chuetsu

Oct. 23, 2004

14.9

13

Hyuga nadaJan. 22, 2022

11.9

14

Chiba-ken Hokuseibu

Oct. 7, 2021

11.0

15

The 2007 Niigata-ken Chuetsu-oki

Jul. 16, 2007

8.3

16

Miyagi-ken-oki

May. 1, 2021

8.1

17

Fukuoka-ken Seiho-oki

Apr. 20, 2005

6.4

18

The 2003 Tokachi-oki

Sep. 26, 2003

6.0

19

Tottori-ken Chubu

Oct. 21, 2016

5.6

20

The 2008 Iwate-Miyagi Nairiku

Jun. 14, 2008

5.5

Source : Japan Earthquake Reinsurance Co., Ltd. (as of March 31, 2023)

II. Statistics

15

Statistics
Information
III Market

1 Main Laws concerning General Insurance
Insurance Act (2008)
The Insurance Act stipulates basic matters of rights
and obligations, etc. between policyholders andinsurance companies regarding insurance contracts.
Specifically, it classifies insurance contracts into
general insurance (including accident and sickness
general insurance), life insurance, and accident andsickness fixed-amount insurance, and sets the following
rules:
1. Formation of an insurance contract (Purpose of an
insurance contract, duty of disclosure, delivery of
documents when an insurance contract is concluded)
2. Effect of an insurance contract (An insurance contract
for the benefit of a third party, over-insurance,
reduction in insurable value, reduction in risk)
3. Insurance claim payments (Prevention of occurrence
and expansion of damages, notification of occurrenceof damages, exclusions, assessment of the amount ofdamage, underinsurance, double insurance, time limit
for insurance claim payments)
4. Termination of an insurance contract (Cancellation by
policyholder, cancellation due to non-disclosure or
misrepresentation, cancellation due to an increase inrisk, cancellation for grave reasons, effect ofcancellation), etc.

Major Points of the Insurance Act
The Insurance Act, enforced on April 1, 2010, wasformulated by changing the provisions in theconventional Commercial Code regarding insurance into
an independent law to have the content be in tune withmodern society and with the objective of protecting
policyholders.
(1) Standardization of rules regarding insurance
contracts
Contracts to which the Insurance Act applies
The Insurance Act also applies to cooperative (mutualaid) contracts whose content is equivalent to that ofinsurance contracts.
Provisions regarding accident and sickness fixedamount insurance contracts
Provisions regarding accident and sickness fixedamount insurance, which were not provided for in
the conventional Commercial Code, were
formulated.
(2) Policyholder (consumer) protection
Creation of disciplines of unilateral mandatory
provisions

16

III. Market Information

With the introduction of the disciplines of unilateralmandatory provisions clause in the Insurance Act,any content disadvantageous to policyholders, theinsured, or insurance beneficiaries will become
invalid. However, such disciplines do not apply toinsurance contracts in the corporate business field.
Duty of disclosure
Due to the duty to answer the questions asked, it is
only necessary for policyholders or the insured todisclose information on the matters for which an
insurance company requests notification.
An insurance company cannot cancel an insurance
contract due to a duty of disclosure violation in caset h e re h a s b e e n a n y i n t e r f e re n c e re g a rd i n g
notification or abetment of concealment by aninsurance solicitor.
Time limit for insurance claim payments
Due to the provision of an insurance claim payment
period, insurance companies are liable for any delaya f t e r a r a t i o n a l p e r i o d o f t i m e re q u i re d f o r
conducting investigations regarding appropriate
payment of insurance claims.
Provisions regarding contracts where anotherperson is the insured
As for accident and sickness fixed-amount insurance
contracts where another person is the insured, thebasic rule to obtain consent from the insured was
defined (except in certain cases where consent is not
required).
In accident and sickness insurance contracts whereanother person is the insured, a provision was newly
created stating that the insured is allowed to request
cancellation of the insurance contract in cases where,
even if the insured once gave his/her consent, his/hertrust relationship with the policyholder or insurance
beneficiary(ies) has been broken thereafter, or where
the circumstances that served as the basis for suchconsent have changed remarkably.
(3) Insurance functions
Over-insurance
As for over-insurance contracts where the insured
amount (contract amount) exceeds the actual value(insurable value) of the subject-matter of insurance, achange was made to the wording of the excess partof the text from “the excess part shall be invalid” to“the excess part can be cancelled.”
Double insurance
As for double insurance contracts where multiple
general insurance contracts were concluded on thesame subject-matter of insurance, the independent
liability full payment method was introduced.

1 Main Laws concerning General Insurance
As a result of this introduction, it is now stipulated
that in cases where other general insurance contracts
have been concluded on the same subject matter of
insurance, each insurance company shall assume
their obligation of fully paying an insurance claim
based on the insurance contract that the said
insurance company concluded, instead of making a
pro-rata payment.
Preferential rights regarding liability insurance
contracts
In order for victims to preferentially recover fromdamages from insurance claims, even in cases where
the insured has gone into bankruptcy, provisions ofspecial preferential rights (statutory lien) have been
introduced.
Creation of cancellation for grave reasons
A provision on ‘cancellation for grave reasons' wasnewly created to prevent moral risks, such as
insurance fraud. Based on this provision, should
there be a grave reason that undermines aninsurance company’s confidence in the policyholder
or the insured, which makes continuation of theinsurance contract difficult, such as intentional
damage or fraud, the related insurance company cancancel the insurance contract.
Step-in rights of insurance beneficiaries
To protect policyholders against any cancellation of
an insurance contract by creditors, etc., a system wascreated where insurance beneficiary(ies) can continue
the insurance contract (step-in rights).
Certain requirements for the insurance beneficiary(ies)to exercise their step-in rights were provided for,such as obtaining the policyholder’s agreement to
the exercise of step-in rights, paying creditors, etc.
the amount equivalent to the cash surrender value ofthe policy within one month of the time theinsurance company received a cancellation notice,etc. (Accident and sickness fixed-amount insurance.)Insurance Business Act (1995)
In view of the public nature of the insurance business,
the Act was enacted with the aim of protecting
policyholders, etc. by ensuring the soundness andappropriateness of business operations of those who
conduct insurance business as well as the fairness of
insurance solicitation.
This Act is positioned as the basic law of an insurance
supervisory law and stipulates both aspects of supervisionof insurance companies and supervision of insurance
solicitation.
As for supervision of insurance companies, the Act
stipulates provisions regarding license from thecompetent authorities, scope of business, accounting
matters, examination of insurance products, measures tomaintain soundness of insurance companies andmeasures to protect policyholders in the event of abankruptcy by an insurance company and other related
matters. In addition, the Act provides for supervision offoreign insurance business operators engaged in theinsurance business in Japan, from the viewpoint offairness with Japanese insurance companies.
As for supervision of insurance solicitation, the Act
provides for matters concerning the registration/
notification system regarding parties that are engaged ininsurance solicitation, matters concerning the acts to beprohibited during insurance solicitation, and others.

Major Points of Revision (May 2016)
Insurance solicitation rules were reviewed in responseto the report issued by the “Working Group on theProvision of Insurance Products & Services” of the
Financial System Council in June 2013. The revised
Insurance Business Act went into effect in May 2016.
Creation of basic rules on insurance solicitation
In addition to the conventional solicitation rules thatwere limited to “prohibition of inappropriate acts”,
the obligation to actively respond to customers, i.e.,the obligation to provide information and identify
intentions, was introduced. The aim was to achievefine-tuned responses at each phase of the process
starting from the identification of customer needs tothe conclusion of an insurance contract.
Introduction of the obligation for agents andother insurance solicitors to establish systems toensure sound and appropriate operations
As well as the conventional solicitor rule that statesthat insurance companies bear responsibility forsupervision, a rule requiring insurance solicitors toestablish systems to ensure sound and appropriate
operations according to their size and characteristics
was also newly set.

III. Market Information17

1 Main Laws concerning General Insurance
Major Points of the Insurance Business Act

1
Commencementof Business2• Business licenses are granted by the Prime Minster → There are two kinds of business licenses, i.e. life insurance andgeneral insurance.
• Concurrent operation of both life insurance business and general insurance business is prohibited.
• Restriction on the type of company → An insurance company must be a stock company or a mutual company.

1

Business
OperationofInsurance
Companies

Business
operations:

An insurance company can conduct its specific business of underwriting insurance and business incidental
thereto as well as other statutory businesses including securities business, etc. to the extent so as not toimpede with its specific business.

Intrinsic business operations:(i) Underwriting of insurance and (ii) asset management
Incidental business operations:(i) Proxy service for other insurance company’s business or administrative agency service, (ii) debt guarantee, (iii)
underwriting of or handling of subscription for government bonds, municipal bonds, and government-guaranteedbonds and (iv) financial transactions including derivatives
Other statutory businesses:(i) Sales and purchase of public bonds (government bonds, municipal bonds, etc.) (public bonds dealing business),(ii) Sales business, etc. of beneficiary certificates, etc. in securities investment trust• Measures concerning business operation→ Insurance companies are obligated to give an explanation by delivering written documents about the importantmatters in insurance contracts.
• Antitrust law exemption system→ An insurance company can conduct concerted action with other insurance companies (which requires thepermission of the competent authorities).

* There are also similar provisions withregard to foreign
insurance companies.

2

Subsidiary:

An insurance company can make an insurance company, bank, securities company, subordinate businesscompany, financial related company and such like as its subsidiary subject to receiving permission from thecompetent authorities in advance.

3

Accounting:

An insurance company must, in every fiscal year, submit a business report stating the status of its businessand assets to the competent authorities and disclose the disclosure data stating the said status to the public.

4

Supervision:

Insurance companies must, when changing the document showing the method of operations, generalpolicy conditions, etc., receive permission from or make notification to the competent authorities.
Competent authorities can set the standards for judging the soundness of operations of insurancecompanies and order measures required for supervision.

• Approval system/notification system of a document showing the method of operations, general policy
conditions, etc.

• On-site inspection • Business improvement order, etc.
• Issue of a prompt corrective action order based on the solvency margin ratio(status of the adequacy of insurance claim paying ability)

3

A person/entity that holds voting rights exceeding a certain percentage of total shareholders of an insurance

5

Shareholder: company or an insurance holding company must make a notification to the competent authorities.

1

Restrictions on insurance
solicitation:

Insurance
solicitation

Those who can conduct insurance solicitation are provided for as follows:• “Insurance solicitation” = Acting as an agent or intermediary for the conclusion of insurance contracts• Prohibition of insurance solicitation by parties other than a general insurance company (officers andemployees), general insurance agent, life insurance solicitor, and insurance broker

2
3

Registration of general insurance
agent, life-insurance solicitor:
Basic rules on insurance
solicitation:

General insurance agents and life insurance solicitors cannot conduct insurance
solicitation without being registered with the competent authorities.
The following rules are set with regard to the prohibition of inappropriate acts
and active response to customers.

<Prohibited acts>• False notification to a policyholder, etc., non-disclosure to a policyholder, etc. of important matters in an
insurance contract• Provision to a policyholder, etc. of particular advantage (discount of insurance premiums, etc.)• Misleading expressions, etc. in comparison with other insurance contracts<Active responses to customers>• Obligation to identify intentions • Obligation to provide information

4

Obligation to establish systems to ensure General insurance agents, etc. must establish systems for ensuring sound andappropriate operations according to their size and characteristics.
sound and appropriate operations:

5Supervision:

A general insurance agent, etc. must, when it has its officers or employees conduct insurance solicitation,
notify the competent authorities.

• Officers and employees of a general insurance agent or an insurance broker → Notification is required.
• Business improvement order, deregistration, etc.

18

Applicants for insurance contracts can withdraw or cancel their applications in writing during acertain period of time from the conclusion of a contract.

4

1

Cooling-off system:

Others2
3
4

Alternative Dispute Resolution system in the financial industry sector (Financial ADR)

III. Market Information

Policyholder protection system
Penalties

1 Main Laws concerning General Insurance
Act on Non-Life Insurance Rating
Organizations (1948)

Act on the Protection of Personal
Information (2003)

The Act was enacted to ensure appropriate operationof the Non-Life Insurance Rating Organizations whichcalculate and provide Reference Loss Cost Rates andStandard Full Rates that serve as the basic data for each
insurance company to calculate fair general insurance
rates, and thereby promote the sound development of
the general insurance business and the protection ofpolicyholders’ interests. The General Insurance Rating
Organization of Japan was established based on this Act.

The purpose of this Act is to protect the rights andinterests of individuals by stipulating obligations to beobserved by entities handling personal information withregard to appropriate handling of personal information.
The Act prescribes the obligations to be observed byentities handling personal information such as: specificationof the purpose of use, proper acquisition, notification,
disclosure and clear presentation of purpose of use at thetime of acquisition, security control measures, supervisionof parties involved and third party service providers,
restriction of provision to third parties, and disclosure,correction, stoppage of the use of personal information.

Automobile Liability Security Act(1955)The Act was enacted with the aim of protecting
victims by establishing a system to ensure damage
compensation in the case of bodily injury accidents
caused by automobiles. To ensure compensation capacityof the injuring party in an automobile bodily injury
accident, the Act compels all automobile owners toconclude compulsory automobile liability insurance
contract or automobile liability mutual aid contract,
except for special cases.

Act on Earthquake Insurance(1966)The Act was enacted with the aim of disseminating
earthquake insurance and contributing to the stability oflives of earthquake victims, etc. by having the Government
bear, in the form of reinsurance under certain conditions,payment liability of earthquake insurance on residential
houses and home contents written by insurancecompanies.

Consumer Contract Act (2000)
Because there is an asymmetry of information andbargaining power between a consumer and a business
entity, under the Act, a consumer is able to cancel acontract with a business entity when misrepresentationof the business entity misleads the consumer, or when
the consumer is “distressed” by importunate behavior of
the entity at the time of contract.
This Act also stipulates that such provisions in thecontract shall be void where the liability of a business
entity is restricted or the interests of consumers are heavily
damaged. It also provides for a consumer organization
injunction system that allows certain consumer
organizations to claim the right to request a ban against
unjust acts made by a business operator. This Act intends
to protect the interests of consumers through suchprovisions.



Financial Instruments andExchange Act (2006)
This Act aims to establish comprehensive and crosssectional rules regarding a wide range of financial
products to promote investor protection. Under the Act,financial instruments business operators are required tocomply with the following rules of conduct (rules forsales and solicitation), which also apply to someinsurance products:(i) regulation on advertisements;(ii)	obligation to deliver documents in a written format
before/at the time of making a contract;(iii)	various examples of prohibited acts such as deliveryof false information; and(iv) prohibition of loss compensation, etc.

Act on Provision of Financial
Services (2021)
The purpose of this Act is to protect customers who
receive financial services, and thereby to contribute to thesound development of the national economy by ensuringsound and appropriate operations by financial service
intermediaries through:(i) providing for the liability of financial instrument
providers, etc. for compensation in the event that acustomer suffers damage as a result of a provider
failing to explain important matters to the customer
at the time of sale of a financial instrument, and/or
other matters relating to the sale, etc.; and(ii) implementing a registration system for persons
acting as financial service intermediaries.
In response to the growing need for a one-stop shop
for a wide range of financial services, including banking,securities and insurance, the Act on Sales of Financial
Instruments was revised and renamed the Act on
Provision of Financial Services. This enables intermediaries
to provide all of the above services, within certain
limitations to protect users, in a single registration.
(See the column for background information on theenactment.)
III. Market Information

19

Column

Financial services intermediary businessBackground: Development of information and communication technologies anddiversification of needs
The development of information and communication technologies has made it possible to provide
financial services online. Also, it is important to make it easier for users to choose from a variety ofservices that are suitable for them, as their employment and household situations become morediverse.
Against this backdrop, there is a growing need for a one-stop provider of a wide variety offinancial services, including banking, securities, and insurance.
Establishment of a Financial Services Intermediary Business
The Act on Sales of Financial Products was renamed the Act on Provision of Financial Services, anda “financial services intermediary business” was established. The Act took effect on November 1,
2021.
Unlike the existing intermediary business, which was vertically divided by business category, asingle registration allows for intermediation of services in all areas of banking, securities, andinsurance, optimizing the provision of one-stop services.
Major regulations for user protection
Financial services intermediaries are not required to belong to any particular financial institution inorder to be able to handle a variety of services.
Instead, they are required to protect users by limiting the services they can handle to financial
services that are not considered to require a high level of explanation, prohibiting the acceptance ofuser assets, and requiring deposit of guarantee money.

20

III. Market Information

2 Catastrophe Loss Reserves• Objective
The objective of the catastrophe loss reserves is tomaintain adequate financial resources to prepare
for possible large future losses (claim payments).
• Background
Since its initial establishment in 1953, thisindispensable system has been continuously
developed to help ensure that insurance companies
are fully prepared to pay claims by reviewing thelines of insurance covered by the system.

Group of BusinessLines of Insurance• Accumulation of Reserves
Catastrophe loss reserves must be set aside by
every group of business, except Earthquake
Insurance on Dwelling Risks and CALI.
• Preferential Tax Treatment
The system is supported by tax incentives. The
amount accumulated in the reserves is tax
deductible (deductible expense).
• Disposition of Reserves
When the loss ratio exceeds the specified level, theexcess portion of the claims can be withdrawn
from the reserves.
Maximum
Accumulation
Disposition
Rate (D)of Reserves (E)*1Accumulation
Rate (A)*1

Accumulation
Rate (B)

Ratio of
Balance (C)

3.0%

3.0%

50%

250%

80%

2.0%
*2

35%

160%

50%

Marine Hull andAviation G.

Marine Hull andAviationFire and Windstorm
and Flood G.

Fire

3.8%

Windstorm and Flood

2.0%

Marine Cargo, Inland
Transit, Construction
Works, Movables
Comprehensive

2.0%

2.0%
*3

35%

160%

50%

General Liability G.

General Liability

2.0%

2.0%

35%

160%

50%

Automobile G.

Automobile, Personal
Accident, Shipowners'
Liability for Passengers'
Personal Accident,
Workers' Accident
Compensation, Credit,
Guarantee (excl. Surety
Bonds), Glass,
Machinery, Burgulary,
Animal, Miscellaneous
Pecuniary Loss (excl.
Nursing Care), etc.

3.2%

―

15%

160%

50%

Nursing Care G.

Nursing Care

3.2%

―

15%

160%

50%

Surety Bond Business G.

Guarantee regarding
Surety Bond Business

3.2%

―

15%

160%

50%

Marine Cargo G.

Atomic Energy G.

Atomic Energy

50%

50%

―

nil

Net Claims Paid

Life Reinsurance G.

Life Reinsurance

24%

―

―

24%

100%

Notes: 1. The above is an outline of the Catastrophe Loss Reserves system in Japan. (It is subject to rules not listed in the table ornotes.)
2. Accumulation Rate (A) means the minimum percentage of net premiums stipulated under a statement showing the basisof working out premiums and underwriting reserves.
3. Accumulation Rate (B) means the maximum percentage of net premiums allowed under the Act on Special Measuresconcerning Taxation.
4. Insurers are legally required to accumulate either of the percentages or more, i.e. (A) or (B) greater of net premiums. They
are allowed to accumulate an extra amount subject to notification to the FSA, but if the Ratio of Balance comes under the
specified level mentioned in the table (C), they can accumulate an extra amount without such notification within a 150%
limit. The Maximum Accumulation Rate (D) is the maximum rate of balance of the reserves stipulated under a statementthat shows the basis of working out premiums and underwriting reserves.
5. Disposition of Reserves occurs when the loss ratio exceeds the specified level (E), and the excess portion of claims can bewithdrawn from the catastrophe reserves.
6. With regards natural catastrophe related risks covered by fire insurance policies, since fiscal 2005, general insurance companies
have had to establish a rational catastrophe reserve plan and build up their reserves until the amount reaches the estimatedlosses caused by a large scale natural disaster, such as those which might occur only once in 70 years (i.e. typhoon Vela in 1959).
*1 “Accumulation Rate (A)” and “Maximum Accumulation Rate” may differ from company to company.
*2 10.0% is allowed from FY2022 to FY2024 under the current transitional measures.
(Under certain conditions, the original 2.0% applies (instead of the above transitional measure percentage).)*3 6.0% is allowed from FY2022 to FY2024 under the current transitional measures.
(Under certain conditions, the original 2.0% applies (instead of the above transitional measure percentage).)III. Market Information21

3 Residential Earthquake Insurance
Residential earthquake insurance is provided in Japanthrough a public-private partnership, in which thegovernment reinsures the earthquake insurance liabilities
underwritten by private insurance companies. This
contributes to the stabilization of the livelihoods of thoseaffected by earthquakes.
In Japan, neither earthquake insurance nor fire(homeowner) insurance is compulsory. Earthquake
insurance cannot be purchased separately but can be
added as an option to fire insurance which covers
residential buildings and/or personal property (fireinsurance itself does not cover losses caused by fires thatare the results of an earthquake or those that spreadbecause of an earthquake). To improve the penetration
rate of earthquake insurance, earthquake insurance is
automatically attached to fire insurance policy unlesspolicyholders explicitly indicate they want it removed.
Earthquake insurance covers loss or damage toresidential buildings and/or personal property due to fire,
destruction, burial, or flooding caused directly or
indirectly by an earthquake, volcanic eruption, or
resulting tsunami. With regard to other perils that are notdirectly or indirectly caused by an earthquake, such as(other types of) fire, flooding, lightning strikes,
windstorms, hailstorms, and snow-related disasters,
various fire insurance products are offered by private
insurance companies.
153.3

The premium rate is calculated by multiplying thebasic rate of the insurance premium (set according to thestructure and location of the insured building) by adiscount rate (set according to the earthquake-resistancecapability). The policyholder must set the amount insured
under the earthquake insurance contract within a rangeof 30-50% of the amount insured under the fire
insurance contract. Claims are paid according to thedegree of loss of the policyholder's residential building
and/or personal property (total loss, major half loss,
minor half loss, or partial loss). This simplified loss
category system helps ensure faster claim payments.
Income tax credit for earthquake insurance premiums has
been introduced to incentivize people to take out
earthquake insurance.
The government and private insurers share liabilitiesof earthquake insurance through reinsurance. First, allearthquake insurance policies underwritten by private
insurers are ceded to Japan Earthquake Reinsurance Co.,
Ltd. (JER), a reinsurer established by non-life insurers to
exclusively handle earthquake insurance. Then, JER
retrocedes the risk to insurers and the government up to
their predefined indemnity limits and retains any
remaining indemnity. Please refer to the chart below for
details regarding the liability sharing scheme between thegovernment and insurers.

216.3

12,000 billion JPY

50%
Government‘s Liability
11,771.3 billion JPY
Private Insurers‘
Liability50%
228.7 billion JPY

Approx. 99.63%

Approx. 0.37%(as of April 1, 2023)

22

III. Market Information

4 CALI Investment Income Contribution Program
Investment income generated by the CALI business ofgeneral insurance companies is used for measures toprevent automobile accidents and support victims ofautomobile accidents. Since 1971, the General Insurance
Association of Japan (GIAJ) has been supporting victimsof traffic accidents by collecting the investment incomeof general insurance companies.

Business using investment income from CALI
Under the Automobile Liability Security Act, theentire earnings (investment income) generated by thefunds (in arrears) between the receipt of premiums
and the payment of insurance claims must be set
aside as a reserve based on the no-loss, no-profit
rule. This investment income is to be used to improve
future CALI income and expenditure, as well as formeasures to prevent automobile accidents, support
victims of automobile accidents, and improve theemergency medical care system.

Support for victims of traffic accidents• Support for free legal consultation for victims of traffic
accidents• Assistance for projects to support the Traffic Orphans'Development Fund
• Assistance for rehabilitation workshops• Assistance for information provision and training
sessions for victims of traffic accidents• Assistance for research on improving the quality of griefcare and its infrastructure for traffic accident survivors

Rehabilitation workshops

Improvement of emergency medical care systems
Measures to prevent automobile accidents• Donation of bicycle simulators• Support for educational programs to prevent drunkdriving• Research support for the development anddissemination of educational tools for children to
reduce pedestrian accidents• Research support for the development of a driving-life
extension program using virtual reality (VR) driving
simulation• Donation of high-performance emergency vehicles, etc.
(as of the end of FY2022: 1,685 vehicles in total)• Subsidies for the purchase of emergency medical
equipment• Subsidies for the development of a flying doctor system(helicopter)• Subsidies for training sessions on emergency trauma
nursingHigh-performance
ambulance

Flying doctor (helicopter)training sessions
Bicycle simulator

Workshop on emergency
trauma nursingIII. Market Information23

5 Policyholders Protection System
Early Warning Measures
An early warning measure is a supervisory mechanism
to encourage management improvement aimed at promoting
the protection of policyholders where the supervisory
authorities issue an order to implement required corrective
measures to an insurance company depending on the statusof the payment capacity of the insurance company.
The issuance of a corrective measure order is based on
the solvency margin ratio and, in the case that the solvency
margin ratio falls below 200%, the Commissioner of the
Financial Services Agency calls for prompt corrective
measures to be implemented in a timely, appropriatemanner in order to quickly recover sound management.
An approach to tighten risk measurement has beentaken as of the end of March 2012. An insurance company
is recognized as maintaining "an appropriate level ofcapacity for the payment of insurance claims, etc." as longas its solvency margin ratio does not fall below 200%.
Effective the end of March 2012, the consolidated
group-wide solvency margin ratio is disclosed for
insurance companies with subsidiaries, etc., in addition to
the solvency margin ratio on a legal entity basis.
Total Amount of Solvency Margin
including Capital and Reserves

Solvency Margin Ratio (%) =Total of Risks which exceeds usual estimates × 1/2

×100

Key Contents of Early Warning Measures (Early Remedial Actions)Category about the statusof capacity for payment
of insurance claims, etc.

Solvency margin ratio

Non-applicable category

200% and overCategory 1

100% to less than 200%

Category 2

0% to less than 100%

Category 3

Less than 0%Content of measures
None• Submission and implementation of a business improvement plan to ensure
sound management• Submission and implementation of a plan to restore adequate solvency for
payment of insurance claims• Prohibition or limitation of dividends and directors' bonuses• Curtailment of operations of sales offices and other offices• Business suspension order (full or partial operations) for a specified period

Non-Life Insurance Policy-holders Protection Corporation of Japan
In the event that a general insurance company becomes insolvent, the Non-Life Insurance Policy-holders Protection
Corporation of Japan, which was established based on the Insurance Business Act, works to protect policyholders byoffering support for the transfer of insurance contracts of the insolvent insurance company and funds to assist thepayment of insurance claims with regard to contracts applicable for indemnification.
Mechanism of Non-Life Insurance Policy-holders Protection Corporation of Japan
Insolvent insurancecompany
Transfer, etc. of
insurance contract
Application for
funding support

Insurance contract

Policyholder

Reliever insurancecompany

Payment of
insurance
claims, etc.
Financial aid

Non-Life Insurance Policy-holders
Protection Corporation of Japan
Prior contribution
All general insurance companies
Note: In the event of a reliever insurance company failing to appear, the Non-Life Insurance Policy-holders Protection Corporation of Japan, or its subsidiary
insurance company established by the Corporation for this purpose, will take over the insurance contracts of the insolvent insurance company and work
to maintain them. (All contracts are applicable for transfer.)

24

III. Market Information

5 Policyholders Protection System
Contracts Applicable for Indemnification from the Non-Life Insurance Policy-holders Protection Corporation of Japan• In the case that the policyholder is an individual, small-size enterprize *1 or management association of a condominium *2,
it is applicable that the party may receive indemnification from the Non-Life Insurance Policy-holders Protection
Corporation of Japan.
• All policyholders (regardless of type) may receive indemnification from the Non-Life Insurance Policy-holders Protection
Corporation of Japan for insurance with .

Insurance concerning sickness andinjuryGeneral insurance(other than the following)

Payment of insurance claims
CALI, Earthquake Insurance on Dwelling Risks

Surrender value, maturity refund, etc.

Indemnification ratio of 100%

Automobile insurance
Fire insurance
Other general insurance
General liability insurance, movables comprehensive
insurance, marine insurance, inland transit insurance, credit
insurance, workers' accident compensation insurance, etc.

Full payment of insurance claim(indemnification ratio of 100%) during
the three months after bankruptcy

Indemnification ratio of 80%

Indemnification ratio of 80% after
three months have passed

Short-term personal accident *3
Specific overseas travel *4
Annuity type personal accident insurance *5
Workers' savings personal accident insurance
Defined contribution pension personal
accident insurance
Other sickness and injury insurance
Personal accident insurance other than the above,
income indemnity insurance, medical and nursing care(expense) insurance, etc.

Indemnification ratio of 90% *6
Indemnification ratio of 90% *6
Indemnification ratio of 90% *6
In the case of savings-type insurance,
the ratio for the savings portion is 80%.

Notes: 1. The above insurance contract categories shall follow the insurance claim payment terms under the main contract (basically the general policy
conditions).
2. W ith respect to "fire insurance" and "other general insurance," even if the policyholder is other than an individual, small-size enterprize or
management association of a condominium (hereafter, "individual, etc."), insurance contracts, whose premiums are to be borne substantially by the
insured as the "individual, etc.", are covered by the aforementioned indemnification within the portion of the above premiums.
3. In the case that, based on the asset conditions of the insolvent insurance company, indemnification above the aforesaid ratio of indemnification ispossible, payment may be made in accordance with the indemnification ratio based on the asset condition.
4. Insurance contracts underwritten by a small amount & short term insurance provider and cooperative (mutual aid) contracts are not applicable toreceive the indemnification from Non-Life Insurance Policy-holders Protection Corporation of Japan.
*1	"Small-size enterprize" refers to any of the following corporations with no more than 20 full-time employees or workers (including an entity or foundation
which is not a corporation and which defines a representative or controller) at the time of insolvency.
(i) J apanese corporation(ii) F oreign corporation whose sales office or office in Japan has concluded the insurance contract*2	"Management association of a condominium" refers to an association provided for in Article 3 and Article 65 of the Act on Building Unit Ownership, etc.
and is an organization that manages a building, etc. used primarily as residence.
*3, 4, and 5 "Short-term personal accident" refers to the so-called accident insurance with a contract period of one year or less. "Specific overseas travel"refers to the so-called overseas travel accident insurance. "Annuity type personal accident insurance" refers to most types of the so-called annuity type
personal accident insurance. Please be aware that in all cases certain conditions apply, e.g. limited to insurance contracts that do not have questions on
health condition in the self-disclosure item at the time of concluding a contract.
*6	In the case that a contract falls under a "contract with high assumed interest rate," the indemnification ratio may be further reduced from 90%. A"contract with a high assumed interest rate" refers to an insurance contract whose assumed interest rate, which is the base of calculation of the insurance
premium and statutory reserve, has exceeded the base rate at all times over the past five years retrospective of the time of insolvency (applicable to apolicy with a contract period of over five years or one that has been automatically renewed for over five years based on the same terms and conditions).

III. Market Information25

6 Responses to Consultations, Complaints and Disputes
Sonpo ADR Center (General Insurance Counseling and ADR Center)
Sonpo ADR Center, which serves as the customer
support window, operates in Tokyo and Osaka. It responses
to consultations about general insurance and carries out
proceedings for complaint resolution and dispute resolution
for problems between customers and insurance companies
from a neutral and fair standpoint as a designated dispute
resolution organization under the Insurance Business Act(such procedure is free of charge).

Responses to consultations
Providing explanations and advice according toindividual needs, the Sonpo ADR Center responds tocustomers with inquiries and those seeking consultations.

In order to ensure appropriateness of the procedures,the proceeding is closed to the public.
In addition, in cases where a dispute resolution specialist
deems it appropriate based on the nature, etc. of the
dispute, the specialist can prepare a proposal for which the
obligation to accept is imposed on the insurance company
and present it to the insurance company with due reason.
• In addition to dispute cases between a policyholder orthe insured and the insurance company with which an
insurance contract has been affected, the GIAJ also
covers dispute cases between a victim and an insurancecompany (or companies) on the side of the damagecausing party regarding legal compensation for damages(bodily and property damage liability) arising fromautomobile accidents, etc.

Responses to complaints
When a complaint is made against an insurancecompany by a customer, the Center gives necessary
advice based on the situation regarding the complaint.

Complaint resolution proceedings
In addition to its response to the complaint, based on
the customer's demand, the Center notifies the related
insurance company of the content of the complaint, andrequests that it respond promptly thereto.
Efforts for early resolution of customer complaints• The GIAJ gives advice to customers in an appropriate
and timely manner.
• Utilizing a dedicated database, the GIAJ appropriately
comprehends and manages the progress of complaintcases that it requested the related insurance company
to resolve.
•	In cases where complaints are not settled even after acertain period of time has elapsed and they are applicablefor handling under the dispute resolution proceedings,
the GIAJ introduces dispute resolution proceedings tocustomers.

Dispute resolution proceedings
When a petition for dispute resolution is filed by acustomer or an insurance company, the Center appoints
experts (dispute resolution specialists) who specialize in
conducting dispute resolution proceedings, and provides
support for resolving the issue (e.g. presents a settlement
proposal) from a neutral and fair standpoint.** In cases where it is deemed that a dispute will not reach a settlement,
etc. the proceedings may be terminated without a settlement proposal
being presented.

26

III. Market Information

What is ADR?
ADR is short for Alternative Dispute Resolution, andis a dispute resolution method based on an agreement
between the parties, such as mediation, conciliation, or
arbitration in place of a lawsuit. It is a means by which
swift, simple, and flexible resolution can generally beachieved according to the nature of the issue, thecircumstances of the respective parties, etc.

What is a designated dispute resolution
organization?
It is an alternative dispute resolution organization in
the financial field established based on the “Lawconcerning Partial Revision of the Financial Instruments andExchange Act, etc.” promulgated on June 24, 2009. In
cases where certain requirements were met per businesscategory, such as bank, insurance, securities business,
etc., designation as a designated dispute resolution
organization can be given by the competent minister.
Financial institutions conclude agreements (basic
agreements for implementing proceedings) withdesignated dispute resolution organizations of thebusiness category to which they belong per se, including
contents such as (i) the obligation to accept resolution
proceedings of complaints or disputes, (ii) the obligation
to make explanations or submit materials, (iii) the
obligation to accept the proposal for special conciliation
presented. The effectiveness of complaints or dispute
resolution proceedings carried out by a designateddispute resolution organization is thereby ensured.
In dispute resolution proceedings made by adesignated dispute resolution organization, a legal effectthat enables postponement of expiry of prescription
period under certain conditions has been set.

6 Responses to Consultations, Complaints and Disputes
Consultation

Flow of the resolution process
Seek consultation

CustomerReceive explanations and advice from the consultation staff

Sonpo ADR
CenterComplaint

Resolution
File a complaint

CustomerReceive explanations and advice from the consultation staff

If no resolution is reached and the customer
requests further action, the Center asks theinsurance company to respond to complaint
resolution proceedings.

Complaint
resolution
proceedings

Resolution

Notification

Insurance Company
Customer

Sonpo ADR
CenterResponse(a company that has
concluded a basic
agreement to implement
proceedings with the GIAJ)

Report response
taken

Sonpo ADR
Center

If no settlement is reached under
the complaint resolution
proceedings, the case goes todispute resolution proceedings.

Resolution

Dispute resolution proceedingsS end information on how to move forwardwith dispute resolution proceedings

Sonpo ADR
CenterPrepare and submit a filing application

Insurance
CompanyS ubmit a document
summarizing the assertionsof the insurance company

Appoint dispute
resolution specialists

Customer
Send a document summarizing the assertions of the insurance company
Present comments against the assertions of the insurance company (in writing/ in person*)*Dispute resolution specialists examine the need for conducting a hearing for each case filed.

Disputeresolution
specialists

Present a settlement proposal

When accepting asettlement proposal

Settlement reached(completion of proceedings)
When rejecting asettlement proposal

In cases where the dispute resolution
specialist deems that a dispute will
not reach settlement, the proceedings
may be terminated without asettlement proposal being presented.

End of proceedings
III. Market Information27

6 Responses to Consultations, Complaints and Disputes
Changes in the Total Number of Consultations/Complaints Received by the GIAJ
Number of cases

Consultations
Complaints

40,00032,24028,42628,322

29,536

19,72919,024

20,180

9,954

8,697

9,298

9,356

2019

2020

2021

2022

30,00022,28620,000Note: The number of complaints
includes the number ofcomplaint resolution
proceedings.

10,0000Complaint Resolution Proceedings (FY2022)

Number of new cases: 3,489
Personal Accident Insurance 3.8%
Fire Insurance 22.5%

FY

Dispute Resolution Proceedings (FY2022)

Number of new cases: 502
Note: Includes cases that did not go through complaint
resolution proceedings.
Automobile
Insurance

Automobile Insurance 63.7%

Fire Insurance

48.6%

32.5%

Miscellaneous Casualty Insurance
and Marine Insurance 9.2%
Other 0.9%
Other
0.7%

Unsettled
6.3%
Transfer to dispute
resolution proceedings
7.1%
End ofproceedings
3,479 cases

Resolved 8 5 .9 %Personal Accident Insurance 9.8%
Miscellaneous Casualty Insurance
and Marine Insurance 8.6%
Other 0.6%
Other
5.6%
Dispute resolution
proceedings signify
a method ofsettlement based on
the sprit of mutual
concession.
End of proceedings
Cases that end as
Resolved 496
422 cases
unsettled include
disputes on the
32.7%
occurrence of the
Unsettled 61.7%
insured event,e.g., auto theft,vandalism and arson.

Period up to the end of proceedings (percentage by category)
Period up to the end of proceedings (percentage by category)Less than
one month

23.8%

Less than
three months

39.4%

Less than Six months
six months or more

17.4% 19.3%

Measures to Further EnhanceComplaint/Dispute Response Functions

53.4%

Six months
or more33.9%

Less than three months 12.3%
Less than one month 0.4%

Analysis and Use of Complaint/
Dispute Information Received

Efforts to raise customer satisfaction

Complaints feedback• The GIAJ continues to hold training to improve thecapabilities of consultation staff to handle cases.
• The GIAJ works to improve the experience of customers
who use dispute resolution proceedings by implementing
questionnaires for all users.

After analyzing the trend of complaints/disputes on
the respective insurance companies, the GIAJ provides
each company with feedback as useful information forbusiness improvement.

Dissemination activities, collaboration with outside organizations, etc.
• The GIAJ promotes the Sonpo ADR Centerby disseminating information via brochures, posters, and other means.
• The GIAJ promotes use of the Sonpo ADR
Center through collaborative efforts with
consumer affairs organizations and otherconsulting institutions.

28

Less than six months

III. Market Information

Publication of the “Sonpo ADR Center: Issue of Statistics”
The GIAJ publishes statistics and summaries regarding
complaints and disputes brought into the Sonpo ADR
Center on its website “Sonpo ADR Center: Issue of
Statistics”. It also shares them with its member
companies.

7 Education and Examinations, etc. for Insurance Solicitors
It is mainly general insurance agents* who serve as
the window of contact with customers. They provide
explanations on general insurance products and carry out
procedures for concluding insurance contracts.
In order to further promote enhancement of thequality of insurance solicitation, the GIAJ has developed asystem, etc. for testing insurance solicitors who work foragents.

General Examination for General Insurance Solicitors
In order for solicitors to acquire and improve thequality of their insurance solicitation, the GIAJ provides a“General Examination for General Insurance Solicitors”(hereafter: The General Insurance Solicitor Examination).
The General Insurance Solicitor Examination consistsof a Basic Course Unit and a Product Course Unit (autoinsurance, fire insurance, and personal accident andsickness insurance), and applicants are required to pass
the examination to be qualified for insurance solicitation.
This examination employs a renewal system every five
years to verify updated knowledge about the insurance
business and products.

General Insurance College Course
As a mechanism for solicitors who pass the General
Insurance Solicitor Examination and would like to step up
further, the GIAJ provides the “General Insurance College
Course”.
The General Insurance College Course consists of theExperts Course, for acquiring deep expertise concerning
insurance solicitation, and the Consulting Course, foracquiring practical knowledge as well as skills. It employs
a five-year renewal system.
The following titles are granted to the insurance
solicitors who pass the examinations for the above courses.
Currently, 32,188 Sonpo (General Insurance) Planners(solicitors who have earned the “Experts Course”
qualification) and 16,288 General Insurance Total Planners(solicitors who have earned the “Consulting Course”
qualification) are playing active roles in the market (as ofthe end of July 2023).

General Insurance
Solicitor Examination

General Insurance College Course
Experts Course

Consulting Course

Product Unit

Automobile Insurance
Unit

Fire Insurance Unit

Accident and Sickness
Insurance Unit

Step-up<Title><Title>Sonpo
Planner
Authorized by
The General Insurance
Association of Japan

Sonpo
Total Planner
Authorized by
The General Insurance
Association of Japan<Requirements><Requirements>• Must have passed the legal unit andthe tax unit examination• Exhibit aptitude as a Solicitor, etc.

• Experts Course qualification acquisition• Take and complete the specified
education program• Pass the Consulting Course examination• Exhibit aptitude as a Solicitor, etc.

Basic Unit

Searching for agents with the “Sonpo Total Planner” qualification
By inputting a ZIP code or an address in the search area of the
GIAJ website, you can easily find a local agent who is a qualified“Sonpo Total Planner”, the highest qualification of the consulting
course.
As of the end of July 2023, the website was providing information
on approximately 4,100 agents.
Search here:
https://sonpo-totalplanner-ag.jp/
Note: It may be accessed from the GIAJ website.
* In Japan, an “agent(s)” can refer to both an individual and/or a company/organization.

III. Market Information29

7 Education and Examinations, etc. for Insurance Solicitors
Solicitor Qualification Information System

Examples of efforts by GIAJ member companies

The GIAJ operates the Solicitor Qualification
Information System, which centrally manages
qualification information, etc. of solicitors.
Using this system, solicitors can check the effective
period, etc. of qualifications for the General Insurance
Solicitor Examination, the General Insurance College
Course, etc. and manage the status of various
examinations.

Formulation of “The Compliance Guide for Solicitation”
The GIAJ has put in place The Compliance Guide for
Solicitation as guidelines for member companies toprovide guidance to solicitors.
In this Guide, easy-to-understand explanations are
given about points to be considered when soliciting
insurance by providing matters concerning insurance
solicitation provided for in the Insurance Business Act andother laws in a structured manner and showing standard
examples of soliciting practice.
In February 2023, the GIAJ updated the Guide toreflect the information on the recent environment
surrounding insurance solicitation.

• Introduction of unique sales qualification
systems
Some GIAJ member companies have introduced
their own sales qualification systems, such as salesqualifications specializing in third-sector products(medical insurance, cancer insurance, etc.), etc.

• Implementation of customer
questionnaires regarding solicitation
Some GIAJ member companies have begun
asking customers to fill in questionnaires about
the product explanations given by their agents(solicitors). They analyze the responses and utilize
the results to further improve the quality of
insurance solicitation.

For Reference: Role of an Insurance Agent

Conclusion of an Insurance Contract

Procedures forConclusion of an
Insurance Contract

Policyholder

General Insurance
Agent

Consignment
Contract

Insurance
Company

As an agent of an insurance company, the authority to conclude insurance contracts has been given to the agent via
an agency agreement with the insurance company.
If a customer makes an insurance application to an insurance agent using a given “insurance application form” andthe agent accepts it, this means that an insurance contract has effectively been materialized between the customer(policyholder) and the insurance company.
Note: Depending on some insurance companies or classes of insurance, the authority of agents may be just “brokering.” In such cases, the insurance contract
is materialized when the related insurance company agreed to accept the insurance contract at a later date.

30

III. Market Information

8 Tests and Training Related to Claims Settlement
The primary mission of general insurance is to pay
appropriate insurance claims in a prompt manner should
an accident occur.
Each general insurance company has put in place thefollowing claims settlement system in order to realize
appropriate, prompt, and fair payment of insurance
claims:Bases for damage investigation and claims
investigators
In order to respond promptly to accidents anywherein the Japan, general insurance companies haveestablished a total of 1,284 claim offices throughout thecountry and have allocated approximately 29,119 expert
claims handling staff to those locations (as of April 1,2023).
W ith a view to enhancing the skills of claim
investigators, each general insurance company conducts
a variety of training programs. In addition, the GIAJ alsooffers training related to medical knowledge, automobile
claims adjustment and Earthquake Insurance loss
investigations.

Automobile insurance adjusters

For Reference: Flow from Reporting of an Accident
until Receipt of an Insurance Claim
Related General
Insurance Company• Insurance Policy• Policy Conditions• “Policy Overview” and “Warning
Information”

CustomerConclusion of an
Insurance Contract

Occurrence ofan Accident(Damage)
Receipt of the accident
report/check of theinsurance contract

Report of the Accident

Explanation about Request for Payment of an Insurance
Claim until Receipt of an Insurance Claim

Guidance for Request for
Payment of the Insurance Claim

Adjusters are specialists who investigate amounts ofloss or damage to automobiles, the cause andcircumstances of accidents and other related matters.
There are 7,326 adjusters registered with the GIAJ (as ofJuly 1, 2023). Adjusters are making efforts to enhancetheir investigation skills through a variety of training.

Damage Investigation

Registered property loss assessors of fire andmiscellaneous insurance

Explanation about an Insurance Claim to be Paid

Registered property loss assessors are specialists
delegated by general insurance companies to assess theinsured value of buildings and movable property, workout loss or damage amounts, and investigate the cause
and circumstances of accidents, etc. There are 6,059
assessors registered with the GIAJ (as of July 1, 2023).



Receipt of the Claim
Note, etc.

Payment of the
Insurance Claim

Submission of Documents
Required for Requesting
Payment of the Insurance Claim(Claim Note, etc.)

Cooperation with
Damage Investigation

Receipt of the
Insurance ClaimIn the event of an accident, such as traffic
accident, theft, fire, etc., you are requested togive aid to the injured and report the accident
to a public agency, such as the police, fire
department, etc. before making the report to
the relevant general insurance company.
When you request payment of an insurance
claim, the related accident certificate may berequired. (Particularly in the case of a bodily
injury in a traffic accident, you are requested
to notify thereof to a police station as a“bodily injury accident.”)

III. Market Information31

9 Medical Education Institute for Insurance Adjusters
Medical Education
Promoting proper medical expense payments andefforts to protect victims
Given the call for reinforcing training related topromoting proper payment of medical expenses
addressed in the report issued by the Compulsory
Automobile Liability Insurance Council in 1984, theMedical Education Institute for Insurance Adjusters (MEI)
was established within the GIAJ in 1985. At the Medical
Education Institute, medical training is given to
employees, etc. of general insurance companies with aview to facilitating the proper payment of medical
expenses and to supporting victims in achieving earlyrehabilitation into society.

Necessity of medical knowledge
With the aim of cultivating human resources who canunderstand doctors’ explanations and can have basic
communication with doctors, the GIAJ has been carryingout training to provide employees of general insurancecompanies, etc. who are engaged in claims service with
opportunities to learn the best medical science andmedical knowledge.

High-quality content of training
The GIAJ aims to improve the medical knowledge of
g e n e r a l i n s u r a n c e c o m p a n y e m p l o y e e s t h ro u g hcorrespondence courses, group training programs andmedical seminars held in various cities by having doctors
who are active at front-line clinical sites as main lecturers.

Research Promotion regarding
Traffic Accident Medical Treatment
Purpose of promotion
Utilizing investment income from Compulsory
Automobile Liability Insurance (CALI), the GIAJ provides
research grants regarding traffic accident medical
treatment. Aiding clinical study by individual doctors orgroups aims at promoting the progress and developmentof traffic accident medical treatment, thereby attempting
to contribute to having victims achieve early rehabilitation
into society.

Selection of research grant recipients by way of
accepting candidates from among the public
The GIAJ accepts candidates from among the public
once a year and chooses research grant recipients after arigorous selection process by a selection committee
composed of people with relevant knowledge andexperience.

Number of adoptions
The number of research grants implemented since
1994 has totaled 1,021 cases up to 2023. The results ofresearch supported by these grants are expected tocontribute to victims’ early rehabilitation into society.
Examples of research themes (2023)• Research on the social rehabilitation of patients withhigher brain dysfunction• Research on the upper limb trauma (including disuse
syndrome due to the amputation and the trauma)• Research on driver’s physical disabilities, diseases andsafe driving

Group training in Tokyo

At a research grant presentation ceremony

A training scene of a medical seminar

32

III. Market Information

10 Information Exchange Systems
General insurance companies (including foreign generalinsurance companies and the Non-life Insurance Policy-holders
Protection Corporation of Japan) and association/federationsof cooperatives which operate cooperative insurance, operate
systems to share personal information including details ofcontracts, circumstances of accidents, contents of insurance
claims, etc.

Automobile insurance contracts and accident checksystem• Information exchange system for automobile
insurance contracts which have additional premium
rates applied (grades 1 to 5)
This system is, in cases where a customer has applied to an
insurance company to newly conclude an automobile
insurance contract that was not effected with that company
in the preceding year, to conduct a check among generalinsurance companies as to whether the said insurance
contract existed in the preceding year in order to succeed toand confirm its appropriate grade.
•	 Automobile insurance no claims’ checking system
This is a system, in cases where a customer has changed thegeneral insurance company with which he or she has
effected automobile insurance, to conduct a check among
general insurance companies, etc. as to whether there were
any insured events in the preceding year’s insurance contract
in order to succeed to its appropriate grade.
•	 Settlement system for provisional lump-sum claim
payments for both voluntary and compulsory
automobile insurance
In cases where a general insurance company, etc. ofvoluntary automobile insurance pays an insurance claim in alump sum, including an insurance claim under CALI that isinsured with another general insurance company, this is asystem to make a settlement of the insurance claim under
CALI paid in advance after confirmation between therelevant general insurance companies.
•	Information exchange system concerning automobile
accidents
In order to make an appropriate insurance claim payment for
accidents causing physical damage or property damage
under automobile insurance, this is a system to conduct a
check of a reported accident among general insurancecompanies, etc. as to whether there was any report about
the accident.
•	 Information exchange system concerning bodily injury
claims, etc.
*1
In order to make an appropriate insurance claim payment
by rejecting which fraudulent claims in insurances, etc. covers
bodily injury, such as automobile insurance and personal
accident insurance, as well as insurance, etc., covering
personal effects, this is a system to conduct a check of areported accident among general insurance companies, etc.
as to whether there was any report about the accident.
•	Insurance contract checking system concerning special
rules for the reinstatement of interrupted automobile
insurance contracts
In cases where a customer interrupted his or her automobile
insurance contract in connection with cancellation, transfer,
retur n to a leasing company, or expiration of theautomobile inspection certificate regarding his or her
automobile or due to the policyholder traveling overseas,etc., this is a system to ascertain the content of the contract
before interruption when applying the contract grade
before interruption to the new contract after interruption.
•	Insurance contract checking system concerning newcontracts for policyholders who own multiple
automobiles
To apply a given discount to an insurance contract for thesecond and onward automobile whose insurance is to be
newly effected, this is a system to check with the generalinsurance company with which the first automobile’s insurance
is effected with regard to existence or nonexistence of an
insurance contract of the first automobile, contract grade, etc.
•	Checking system concerning overlapping automobile
insurance contracts
This is a system to check for any redundantly concluded
insurance contract on one automobile with multiple generalinsurance companies and to ensure that an appropriate
insurance contract has been concluded.
•	 Existing disability inquiry system
In order to determine the appropriate degree of damage
incurred when paying insurance claims under CALI and voluntary
automobile insurance, and to work out the appropriate amountof damage based on laws and regulations, this is a system
to perform a check on the degree of the past residual
disability of victims among general insurance companies, etc.
•	C laims history and fraudulent claims informationexchange system *2Through exchanging information on claim histories andfraudulent or suspicious claims among general insurancecompanies, etc., this system is intended to assess claim
amounts so appropriate claim payments can be made in afair and appropriate manner.
•	System to share information provided by the publicregarding fraudulent insurance claims
*3This system is intended to share the information about
reported fraudulent insurance claims and a reported factthat indicates the possibility of such a claim among generalinsurance companies.
•	 Claims history exchange system
*4
Regarding insurance claims for automobile insurance, CALI,
personal accident insurance and personal belongings
insurance, this system is to share and exchange the claimants’insurance claim record information in order to realize the ideaof excluding a fraudulent claim, working out the appropriate
amount of damage, and assuring proper claim payments.

Insurance contracts and accident check system onfire insurance, personal accident insurance, etc.
•	Policy data registration system on personal accident
insurance, etc.
Using this system to prevent insurance crime by registeringwith the GIAJ the content of insurance contracts (personal
accident, etc.), general insurance companies check for any
overlapping insurance contracts that pay claims for death/residual disability, hospitalization/outpatient, etc.
•	 Information exchange system concerning bodily injury
claims, etc.
Same as *1•	Overlapping insurance contracts/claim history inquirysystem for fire and miscellaneous insurance
In relation to accidents reported to general insurancecompanies, etc., this system checks for overlapping insurance
contracts or accident notifications among general insurancecompanies, etc., in order to ensure appropriate insurance
claim payments by excluding fraudulent claims against fire
insurance and liability insurance, etc.
•	 Claims history and fraudulent claims informationexchange system
Same as *2•	System to share information provided by the publicregarding fraudulent insurance claimsSame as *3•	 Claims history exchange system
Same as *4

III. Market Information

33

Column

Efforts for protecting personal information
In order to improve consumer trust in the general insurance industry, the GIAJ has been
designated as an Accredited Personal Information Protection Organization (under the Act on theProtection of Personal Information), and carries out the following operations to ensure proper handlingof personal information by general insurance companies, etc.:
1. Processes complaints regarding the handling of personal information by members
2. Provides information to members
3. ‌Creates and publishes Personal Information Protection Guidelines, and provides guidance and/or recommendations to members regarding compliance with them.
Outline of the operations carried out by the GIAJ as an Accredited Personal Information
Protection Organization
Personal Information
Protection Commission(PPC)

Accredit
1 File a complaint
2 Consultation & advice

Applicant

GIAJ(Accredited Personal
Information
Protection Organization)

Formulation andpublication of the Guidelines
Clarification of measures to be taken ingeneral insurance operations in line with thelaw, PPC guidelines, FSA guidelines, etc.
（Posted on the GIAJ Website）

3 Request for resolution

4 Request for

responses

5 Response

6 Report ofresults orprogress• Provide training• Provide information on complaint cases• Provide examples on data breach cases• Survey best practices of respective companies, etc.

General insurancecompany, etc.

The Act on the Protection of Personal Information, which applies to all private entities, regardlessof type of business and whether or not they are for-profit or non-profit organizations, stipulates only
basic and versatile rules.
Thus, it is desirable for respective private industries to have their Accredited Personal Information
Protection Organization and take their own autonomous measures, so that proper treatment of
personal information is ensured according to the characteristics of the industry or business area, suchas the nature of the personal information being handled, the ways in which it is used, and the actual
situations in which it is treated.

34

III. Market Information

11 International Business
Amid the growing globalization of the insurance
business and the expanding international businessactivities of general insurance companies, the GIAJ is
working to promote harmonization of international
regulations and eliminate trade barriers by issuing
requests and proposals and conducting relevant activities.
Furthermore, the GIAJ is striving to increase theprobability of having such requests met and proposals
realized mainly through interaction with the insurance
associations of various countries, pursuing technicalcooperation of insurance, and dispatching information,and is also contributing to the sound development ofoverseas general insurance markets centering on Asia.

Requests and Recommendations
The GIAJ is expressing requests and opinions of theJapanese general insurance industry through attending
various meetings of the International Association of
Insurance Supervisors (IAIS), the Organisation for
Economic Co-operation and Development (OECD), etc.
and responses to various opinion inquiries, and is also
making a proactive response to international publiccomments. In addition, with regard to service tradeliberalization talks of the World Trade Organization(WTO) and bilateral-level trade issues, etc. between Japanand the U.S., the GIAJ is making a proactive appeal
toward the realization of requests of the Japanesegeneral insurance industry in close cooperation withoverseas insurance associations, etc.

Technical Cooperation on Insurance
As a technical exchange program on insurance, the
GIAJ has held the Insurance School (Non-Life) of Japan(ISJ) every year since 1972 with various areas within East
Asia. The ISJ consists of a General Course, an Advanced
Course, and an Overseas Seminar.
In addition to this, the GIAJ is promoting technicalcooperation on insurance for general insurance
industries, primarily in Asia. This includes dispatchinglecturers to OECD seminars, assisting the Financial
Services Agency in capacity building, which includes
allowing fellows from the Global Financial PartnershipCenter (GLOPAC) to attend the ISJ as observers, andsupporting the development of insurance products and an
education and examination system of insurance agents.

International Conferences
The GIAJ is promoting the exchange of informationand opinions on insurance by attending the followinginternational conferences:• East Asian Insurance Congress (EAIC)• ASEAN Insurance Council (AIC)• International Union of Marine Insurance (IUMI)• International Association of Insurance Supervisors (IAIS)• Organisation for Economic Co-operation and Development(OECD)

Interaction with Overseas Insurance
Associations
The GIAJ takes part in mutual visits and informationexchanges regarding markets with the major insurance
associations of Europe, the U.S., and Asia. Whilst it
exchanges opinions and information about the current
status and issues of insurance markets and various
international problems including the formulation ofinternational insurance supervision standards, it also
responds to service trade liberalization talks, and makes
efforts to strengthen cooperative relationships. Throughthe activities of the Global Federation of Insurance
Associations (GFIA), the GIAJ conducts informationexchanges, issues joint letters and facilitates interaction
between insurance associations. To contribute to thedevelopment of mutual insurance industries throughhuman exchanges and exchanges of opinions andinformation, to date the GIAJ has concluded cooperation
memoranda with the following 15 overseas insurance
associations:(1)	French Insurance Association (FFA) (October 1997)(2)	Association of British Insurers (ABI) (April 2001)(3)	German Insurance Association (GDV) (May 2001)(4)	Insurance Association of China (IAC) (May 2003)(5)	American Insurance Association (AIA) (Currently
American Property Casualty Insurance Association(APCIA)) (June 2003)(6)	General Insurance Association of Korea (GIAK)(November 2003)(7)	General Insurance Council (GIC) (India) (March
2007)(8)	Insurance Association of Vietnam (IAV) (September
2009)(9)	General Insurance Association of Indonesia (AAUI)(January 2010)(10)	Insurance Association of Mongolia (IAM) (December
2010)(11)	General Insurance Association of Malaysia (PIAM)(January 2011)(12)	Myanmer Insurance Association (MIA) (January
2018)(13)	P hilippine Insurers and Reinsurers Association(PIRA) (June 2018)(14) ASEAN Insurance Council (AIC) (November 2018)(15)	Thai General Insurance Association (TGIA) (October
2019)

Cooperation between the GIAJ andthe IAV based on the MoU
In October 2023, the GIAJ held an online
seminar on solvency regulations and ERM in
cooperation with the Insurance Association ofVietnam (IAV). This was recognized as a projectcommemorating the 50th Anniversary of theEstablishment of Diplomatic Relations between
Japan and Vietnam.

III. Market Information

35

Column

Insurance School (Non-Life) of Japan, ISJ
The Japanese general insurance industry has been actively promoting the exchange of insurance
expertise with overseas countries/regions.
The General Insurance Association of Japan (GIAJ) and the General Insurance Institute of Japan(GIIJ) have jointly been providing an insurance technical exchange program called the Insurance School(Non-Life) of Japan (ISJ) for staff and management of general insurance companies and regulatory
authorities in East Asian regions.
The ISJ was founded in 1972 as an international cooperation program organized by the Japanesegeneral insurance industry. It is an entirely private initiative.
The GIAJ and GIIJ jointly run both General and Advanced Courses to which they invite insurance
practitioners to Tokyo from the 16 regions that participate in the ISJ. They also run the Overseas
Seminar, which is an insurance seminar held in different regions (chosen in turn from among theregions), on theme of concern within the respective markets.
The total number of graduates from General and Advanced Courses has now reached 2,273 and(as of Nov. 30, 2023).

ColumnGlobal Federation of Insurance Associations (GFIA)The GIAJ is a member of the GFIA which represents through its 40 members and 1 observer
association the interest of insurers and reinsurers in 67 countries (as of Sep. 2023). GFIA wasestablished in 2012 to increase industry effectiveness in providing input to international regulatory
bodies and to contribute more effectively to the international dialogue on issues of common interest.
https://www.gfiainsurance.org/

ColumnASEAN Insurance Council (AIC)The AIC is a forum for insurance associations from ASEAN countries to meet and discuss measuresfor promoting the sound development of insurance markets. It has sub-committees on compulsory
automobile insurance covering cross-border motor vehicles, insurance education, natural catastrophecountermeasures, reinsurance, etc.
The GIAJ, as the only affiliate member outside of the ASEAN region, participates in AIC discussions
and deepens relationships with insurance industry professionals/practitioners in ASEAN countries.
https://aseaninsurancecouncil.org/

36

III. Market Information

Outline of the General Insurance
III
IV Statistics
Association of Japan

1 History
Prior to the present Association’s establishment

to the Non-Life Insurance Control Association to

in 1946, its origin can be traced back to 1917,

assist the government in the control of the industry

when the Joint Fire Insurance Association of Japan

during a chaotic economic period. However, shortly

was founded by domestic and foreign insurance

after hostilities ended, this Control Association wascompanies operating at the time. In 1939 the Joint

dissolved in September 1945. The Marine and Fire

Association was reorganized as the Dai-Nippon Fire

Insurance Association of Japan was reestablished on

Insurance Association. In 1941 it was amalgamatedJanuary 18, 1946, by all the domestic non-life

with several marine insurance organizations, such as

insurance companies. On May 1, 1948, it was

the Japan Marine Underwriters’ Association and thereorganized as an incorporated body. On May 20,

Hull Insurers’ Union (established in 1920 and 1927

2003, it changed its English name to the General

respectively) into the former Marine and Fire

Insurance Association of Japan (GIAJ) and is currently

Insurance Association of Japan consisting of only

composed of 29 member companies (as of Nov.1,

domestic companies as regular members. The following2023).

year, in 1942, its name and functions were changed

2 Objective
The objective of the GIAJ is to promote sounddevelopment and maintain reliability of the generalinsurance business in Japan, and thus contribute to asecure and safe society.

3 Major Activities
a. Enhancing the dissemination and understanding of general insurance
The GIAJ provides a variety of information about
general insurance for enhancing consumers
understanding through the website of the GIAJ,
and by sending lecturers to speech sessions.
b. Responding to consultation, complaints anddisputes
The GIAJ operates the Sonpo ADR center(General insurance Counseling and ADR Center)to answer consumer inquires and carry out

proceedings for complaint and dispute resolution
from a neutral, fair standpoint as a designateddispute resolution organization under the
Insurance Business Act.
c. Improving the quality of insurance businessadministration
The GIAJ makes use of its position as a thirdparty organization to improve the quality ofindustry-wide business through advancing
measures based on consumer opinions while
establishing many other guidelines.

IV. Outline of the General Insurance Association of Japan

37

3 Major Activities
d. Maintaining and improving the businessf. Education and examinations for insurance

environment of general insurance

solicitors

The GIAJ plays key roles in industry-wide

The GIAJ implements educational programs andsystems, such as earthquake insurance. It also

the examination system in order to enhance thecarries out research and study, and issues various

quality of insurance solicitation.

requests and proposals of the general insurance
industry in order to maintain and improve theg. Contribution to the global community
The GIAJ is a member of the Global Federation ofbusiness environment.
e. Preventing/reducing damage caused by
accidents, disasters and crimes

Insurance Associations (GFIA), actively participatesin the International Association of Insurance
Supervisors (IAIS) standard setting activities as a

The GIAJ makes efforts to reduce social/stakeholder, closely monitors and advocates

economic losses by conducting educational/

multilateral and regional trade discussions, enhances

awareness-raising activities and submitting

exchanges and cooperation with overseas

proposals for traffic safety, and disaster andinsurance markets, and holds international seminars

crime prevention.

with participants from the East Asian region such as
the Insurance School (Non-Life) of Japan (ISJ).

4 Organization (as of July 1, 2023)
General Meeting
Auditors

Audit Secretariat

Board of Directors

Customer's Voices andExperts Advisory Council

ADR Council

General InsuranceCounseling and ADR Center

Committee concerning Utilizationof CALI Investment Income

Committees

Secretariat
Headquarters
Corporate Planning Dept.

Regional Offices
Hokkaido Branch

Public Relations OfficeInternational Business OfficeBusiness Planning Dept.

Tohoku Branch
Kanto Branch

General Insurance Counseling & ADR Center, Headquarters(Branches)
Tokyo, Kinki

Hokuriku Branch
Chubu Branch

Claims Services Planning Dept.
Distribution System & Education Planning Dept.
IT Planning Dept.

38

Kinki Branch
Chugoku Branch

Legal Affairs & Risk Management Dept.

Shikoku Branch

General Affairs & Personnel Dept.

Kyushu BranchInternal Auditing Office

Okinawa Branch

IV. Outline of the General Insurance Association of Japan

5 Overview of the 9 Mid-Term Business Plan (2021-2023)th

The 9th Mid-Term Business Plan identifies the priority issues that the GIAJ will undertake over the next 3 years. It also
highlights the measures to be taken to address these issues, while carrying out businesses that contribute to the sounddevelopment of, and trust in, the industry, in a stable and highly productive manner, so that the general insurance industry
develops sustainably by fulfilling social functions as a risk taker that supports customers.
The GIAJ aims to make a contribution to stakeholders, including customers, and accomplish SDGs by achieving thegoals of the priority issues.

Priority Issues
1. Development of a sustainable business environment• ‌Responses to new lifestyles (review of paper-based, “seal-signing”
and face-to-face procedures, etc.), and standards and regulations athome and abroad• ‌Promotion of efficiency and enhancement of convenience by utilizing
digital technologies• ‌Fulfillment of other roles associated with the ongoing evolution ofboth society and the natural environment (such as responses toclimate change)

Relevant SDGs

2. Realization of a disaster-resilient society• ‌Contribution to the development of more resilient towns• ‌Industry-wide initiatives against natural disasters• ‌Enhancement of countermeasures against dishonest and fraudulent
businesses that take advantage of disasters• ‌Promotion of insurance for enterprises

Relevant SDGs

3. Improvement of general insurance literacy• ‌Strengthening of relationships with educational institutions, thegovernment, and intellectual experts, and collaboration with otherfinancial industry organizations• ‌Enhancement of education for high school students• ‌Digitalization of educational tools and reform of methodologies

Relevant SDGs

The plan was worked out in light of circumstantial recognition, the positioning of businesses, the direction of efforts
and expected roles, and by considering the effect and uniqueness of the measures that need to be taken to solve theissues at hand.

Circumstantial recognition• ‌Socio-economical: Super-aging society, cyber risks, etc.
• ‌Global environment: Natural disasters due to global warming, megaquakes, etc.
• ‌Technological innovation: Self-driving vehicles, AI, robots, 5G communications, etc.
• ‌Regulatory environment: Customer-oriented business operations, global regulations, etc.
• ‌Consumer attitudes: Diversification of consumer behaviors, digitalization, etc.
• ‌COVID-19: Penetration of new lifestyles, etc.



IV. Outline of the General Insurance Association of Japan39

5 Overview of the 9 Mid-Term Business Plan (2021-2023)th

Positioning of businesses carried out by the GIAJ
• Businesses that are difficult for individual companies to carry out• Businesses that can be carried out more efficiently and effectively as trade organizations

Direction of efforts toward the ‘Future of the general insurance industry’• Prompt and proper responses to environmental changes• Promotion of business operations from the customers’ perspective• Establishment of a more robust and stable insurance system• Fulfillment of further roles within international insurance markets

Roles expected of the GIAJ
• To contribute to improvements in business quality• To contribute to improvements in operational efficiency• To contribute to development of the business environment• To contribute to development of the market environment

6 Guidelines, etc.
The GIAJ formulates various guidelines to(2)	‌Guidelines on insurance solicitation for thecontribute to the enhancement of the business quality

elderlyof each of its member companies. Based on these

These guidelines provide a set of points to be

guidelines, each GIAJ member company aims toconsidered by member companies such as

develop easy-to-understand insurance products forresponse taking into account the cognitive ability

its customers while at the same time enhancing theof the customer and the product characteristics

quality of its business practices, such as by establishingwhen working out detailed measures for ensuring

an appropriate soliciting system, a system for insurance

proper insurance solicitation for elderly customers.

claim payments, etc.
The main guidelines which have been formulated
so far are as follows:(3)	‌Guidelines on overlapping insurance coverage(Double insurance)
These guidelines illustrate the basic concepts and1. ‌Guidelines on insurance distribution andclaim payments(1)	‌Guidelines on “third-sector-products” (products
whose cause of claim payments is sickness or

the standard measures to be taken to help member
companies improve their preparedness to avoid or
resolve overlapping coverage that is not based on
the customers’ needs.

nursing care)
These guidelines provide a set of points to note40(4)	‌Guidelines on general insurance claim

or to improve from the viewpoint of ensuring

payments

appropriate insurance solicitation and claim

In order to help member companies promote

payments with particular focus on “third-

timely and proper claim payments, these guidelines

sector-products”.

provide a set of points to be considered for

IV. Outline of the General Insurance Association of Japanimproving claim payment systems/arrangements(2)	‌Guidelines related to the description of

and when making claim payments. They aresolicitation materials, etc.

compiled in accordance with Japan FSA’s

These guidelines provide basic concepts andComprehensive Guidelines for Supervision ofpoints to consider when preparing solicitation

Insurance Companies.

tools and advertising through mass media toensure that insurance products are properly(5)	‌Guidelines on designing medical certificate

understood by customers.

forms
These guidelines provide the basic concepts for(3)	‌Guidelines on making policy conditions moredesigning medical certificate forms, the items to

consumer-friendly

be included in and points to be noted with regard

These guidelines provide actual examples toto standard forms. The objective of the guidelines

mitigate difficult-to-understand sentences andis to ease the burden on medical institutions withways to eliminate discrepancy in expressions

their issue of medical certificates and contribute

thereby help member companies prepare easy-to-

to member companies’ operational efficiency andunderstand policy conditions for personal line

their timely, proper and fair payment of claims, by

insurance products.

promoting standardized medical certificate forms.
(4)	‌Guidelines on technical terms used in policy(6)	‌Guidelines on preventing moral hazard

conditions and solicitation materials(fraudulent insurance claims) in personal

These guidelines are intended to have customers

accident insurance, etc.

accurately understand the content of policy

These guidelines support member companies

conditions, solicitation materials, etc. by showing

establish effective countermeasures against moral

how to make previously difficult-to-understandhazard by providing a set of points to bewording easier-to-understand. Technical terms are

considered when concluding insurance contracts

categorized into those that should be avoided

and when making claim payments.

and those that should be accompanied by
supporting explanations.

2. Guidelines on solicitation materials, etc.
(1)	‌Guidelines for policy overviews and information

3. Guidelines on advertising, etc.

that requires attention (Important matters)(1) Ethical code for advertising

In order to ensure that customers properly

The code provides basic concepts for promoting

understand the insurance product being offered,advertisement in a fair and equitable manner. It

these guidelines provide a standard format with

underlines the importance of proactive disclosure

regard to the items to be included in and pointsof corporate information and mutual

to be noted with regard to “policy overview”

understanding with and trust by consumers andinformation and “information that requires

other stakeholders related to the business ofattention” which list important matters that needinsurance through interactive communication, as

to be explained to the customer at the point ofprescribed in the GIAJ’s Code of Conduct.

sales/solicitation in line with the relevant laws andregulations (including Japan FSA’s Guidelines forSupervision).

(2)	‌Guidelines on comparing general insurance
products (Automobile insurance)
These guidelines are designed to help consumers
properly understand and compare insurance
products sold by member companies using
information provided by the GIAJ.



IV. Outline of the General Insurance Association of Japan

41

4. Guides on compliance(1)	‌Guide on how to comply with the Act on(2)	‌Guidelines on the protection of personal
information for general insurance companies

Provision of Financial Services

In order to ensure proper handling of personal

It is the responsibility of each GIAJ member

information by member companies, these guidelines

company to establish a compliance system in line

set specific standards regarding the purpose of use

with the Act on Provision of Financial Services,of personal information and other information toand ensure that the content of the law is

be disclosed, security control measures to befollowed by the company and its agents. Thistaken, etc., in compliance with the Act on theguide provides concepts of legal interpretation

Protection of Personal Information.

and measures that need to be taken in order tocomply with the law.

(3)	‌Practical guidelines on safety control measureson the protection of personal information(2) Compliance guide for solicitation
This guide provides comprehensive and easy-to-

These guidelines set items to be observed byunderstand information on the rules to bemember companies regarding implementation ofobserved by agents when selling insurance andsecurity control measures and guidance andexplanations of the issues for agents to consider

supervision on the protection of personal

when ensuring compliance and establishing an

information they provide to general insuranceinternal control system.

agents.

5. ‌Guidelines, etc. on the protection of personal
information(1)	‌Basic policy on the handling of personal
information by our Association
This policy sets GIAJ’s basic concept and policy
regarding personal information protection andsecurity control measures.

42

for general insurance companies

IV. Outline of the General Insurance Association of Japan*Respective guidelines are only available in Japanese.

Column

Principal initiatives to achieve SDGs
As part of its mission to contribute to the “realization of a safe, secure and sustainable society”
and the “stabilization and improvement of the economy and people's lives”, the GIAJ has been working
on “raising awareness of disaster prevention” and the “prevention and mitigation of traffic accidents”.
The SDGs (Sustainable Development Goals), which were adopted at the United Nations Summit in
September 2015 and consist of 17 goals and 169 targets with a 2030 deadline, pledge to “leave noone behind”.
The GIAJ, together with its member companies, will continue to work proactively to contribute to
the achievement of the SDGs.
Relationship between the GIAJ’s 9th Mid-Term Business Plan and SDGs (Mapping)
The GIAJ set three priority issues to be strengthened in its 9th Mid-Term Business Plan (FY2021 to2023). We aim to contribute to the benefit of all stakeholders and accomplish the SDGs through theachievement of the priority issues.** Please refer to “ 5 Overview of the 9th Mid-Term Business Plan (2021-2023)”.

Column“Position Statement on Climate Change” published by the GIAJ
- Taking action to achieve carbon neutrality by 2050 GIAJ adopted its “Position Statement on Climate Change” in July, 2021. Global efforts are under
way to address and tackle climate change, a serious risk that threatens national economies as well as
people's way of life. In line with such efforts, Japan has committed to achieve carbon neutrality by
2050 and has launched various public and private mitigation and adaptation initiatives.
The general insurance industry will continue to play its part by providing insurance coverage andrelated services and promoting green investments. We remain committed to contributing to efforts on
making a smooth transition to a sustainable society.
GIAJ’s Position Statement on Climate Change
The General Insurance Association of Japan (GIAJ), recognizing that climate change poses both arisk and an opportunity (to initiate change and growth), supports Japan’s commitment to achievecarbon neutrality by 2050. To achieve this goal, GIAJ will undertake and promote the following actions
in a collaborative manner with national and international initiatives.
• ‌GIAJ member companies will take action on climate change mitigation and adaptation and playits part to support a smooth transition to a sustainable society. Actions include, but are notlimited to, providing insurance coverage and related services, working together with GIAJ on
supporting local efforts on disaster resilience building, promoting ESG based investments, andengaging customers through dialogue etc.
• ‌GIAJ and its member companies, as part of its ongoing efforts on moving toward a carbon
neutral society, will continue to reduce its own carbon footprint.
July 2021

IV. Outline of the General Insurance Association of Japan

43

Statistics
III
V Directory
The Number
Domesticof GeneralCompanies
Insurance(33 Companies
Companies as of Nov. 1, 2023)
1 Licensed● AIG General Insurance Company, Ltd.
● Aioi Nissay Dowa Insurance Co., Ltd.
Allianz Fire and Marine Insurance Japan Ltd.
American Home Assurance Co., Ltd.
● Anicom Insurance, Inc.
● au Insurance Company, Limited● AXA GENERAL INSURANCE COMPANY LIMITED● Capital Insurance Corporation
Cardif Assurances Risques Divers Japan
Chubb Insurance Japan● The Daido Fire and Marine Insurance Co., Ltd.
● E.design Insurance Co., Ltd.
● H.S. Insurance Co., Ltd.
● ipet Insurance Co., Ltd.
● Japan Earthquake Reinsurance Co., Ltd.
● JI Accident & Fire Insurance Co., Ltd.
● The Kyoei Fire & Marine Insurance Co., Ltd.
● Meiji Yasuda General Insurance Co., Ltd.
● Mitsui Direct General Insurance Co., Ltd.
● Mitsui Sumitomo Insurance Co., Ltd.
● Nisshin Fire & Marine Insurance Co., Ltd.
● Pet & Family Insurance Co., Ltd.
● Rakuten General Insurance Co., Ltd.
● Rescue Insurance Co., Ltd.
● SAISON AUTOMOBILE AND FIRE INSURANCE COMPANY, LIMITED● Sakura Insurance Inc.
● SBI Insurance Co., Ltd.
● SECOM General Insurance Co., Ltd.
● Sompo Japan Insurance Inc.
● Sony Assurance Inc.
● The Toa Reinsurance Co., Ltd.
● Tokio Marine & Nichido Fire Insurance Co., Ltd.
● Zenkankyo Reiwa Insurance Company, Limited(● represents the GIAJ member companies.)

44

V. Directory

2 Licensed Foreign Companies (22 Companies as of Nov. 1, 2023)
Assuranceforeningen Gard - gjensidig - (Norway)
Assuranceforeningen SKULD Gjensidig (Norway)
Atradius Crédito y Caución S.A. de Seguros y Reaseguros (Spain)
The Britannia Steam Ship Insurance Association Europe (Luxembourg)
Coface Japan (Compagnie Française d'Assurance pour le Commerce Extérieur) (France)
Euler Hermes SA (Belgium)
General Reinsurance AG (Germany)
HDI Global SE (Germany)
Hyundai Marine & Fire Insurance Co., Ltd. (South Korea)
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen (Germany)
The New India Assurance Company Ltd. (India)
NorthStandard Limited (U.K.)
RGA Reinsurance Company (U.S.A.)
SCOR SE (France)
The Society of Lloyd’s [Lloyd’s Japan Inc.] (U.K.)
Starr Indemnity & Liability Company (U.S.A.)
Steamship Mutual Underwriting Association Limited (U.K.)
Swiss Re Asia Pte. Ltd. (Singapore)
Swiss Re International SE (Luxembourg)
Transatlantic Reinsurance Company (U.S.A.)The United Kingdom Mutual Steam Ship Assurance Association Ltd. (U.K.)
Zurich Insurance Company Ltd (Switzerland)

3 General Insurance Organizations (as of Nov 1, 2023)■ General Insurance Rating Organization of Japan■ Non-Life Insurance Policy-holders Protection Corporation of Japan■ The Japan Atomic Energy Insurance Pool
■ The General Insurance Institute of Japan■ Foreign Non-Life Insurance Association of Japan■ INDEPENDENT INSURANCE AGENTS OF JAPAN, INC.
■ Japan Insurance Brokers Association■ The Small Amount & Short Term Insurance Association of Japan■ Loss Adjusting Association of Japan■ All Japan Independent Adjusters Association

V. Directory45

INTERNATIONAL BUSINESS OFFICECORPORATE PLANNING DEPARTMENT
THE GENERAL INSURANCE ASSOCIATION OF JAPAN
General Insurance Building
9, Kanda Awajicho 2-chome, Chiyoda-ku, Tokyo 101-8335, Japan
Tel : +81-3-3255-1439
E-mail : kokusai@sonpo.or.jp
URL : https://www.sonpo.or.jp/en/

December 2023