Japan’s
Insurance
Market2023

Japan’s Insurance Market 2023
ContentsPage

To Our Clients
Masaaki Matsunaga
President and Chief Executive
The Toa Reinsurance Company, Limited

1

1. Typhoon Damage and Countermeasures against Storm Surge Inundation in Japan
Daiki Sakamoto
Chief Consultant, Science Solutions Division
Mizuho Research & Technologies, Ltd.

2

2.	Learning to Work with IFRS 17
Johan Broek
Managing Director
Guy Carpenter & Company

15

3. Trends in Japan’s Non-Life Insurance Industry
Non-Life Planning Department
The Toa Reinsurance Company, Limited

25

4. Trends in Japan’s Life Insurance Industry
Life Planning Department
The Toa Reinsurance Company, Limited

Company Overview©2023 The Toa Reinsurance Company, Limited. All rights reserved.
The contents may be reproduced only with the written permission of The Toa Reinsurance Company, Limited.

34
39

To Our Clients

It gives me great pleasure to have the opportunity to welcome you to our publication, ‘Japan’s
Insurance Market 2023.’ It is encouraging to know that over the years our publications have been wellreceived even beyond our own industry’s boundaries as a source of useful, up-to-date information about
Japan’s insurance market, as well as contributing to a wider interest in and understanding of ourdomestic market.
The insurance and reinsurance industries have been encountering a substantially changing businessenvironment. The risks that confront society are evolving at an unprecedented pace. Climate change isspurring natural disasters of intensifying severity, and the spread of COVID-19 and other issues arehaving a major impact on people’s lifestyles and the structure of industry. Moreover, transformation is
also underway as digital technologies move forward at breathtaking speed and demographics change inthe form of a falling birthrate and aging population.
In today’s era of “VUCA” (volatility, uncertainty, complexity and ambiguity), where conventional
wisdom fails to predict events that occur one after another, the Toa Re Group aims to achievesustainable growth in step with clients by providing them with optimal solutions and services based ona high level of expertise and strict risk control, and underpinned by TEAM TOA 2023, our mediumterm management plan.
Utilizing the full force of the Group, we are pushing forward on an array of initiatives to findsolutions to societal issues through our business activities. In pursuit of the Sustainable Development
Goals (SDGs), we have formulated our Sustainability Vision, and have positioned as key issues, thepromotion of climate change countermeasures, respect for human rights, promotion of D&I, andstrengthening of internal control.
Everyone at the Toa Re Group will do their utmost to ensure that the Group consistently fulfills its
mission as a reinsurance company “Providing Peace of Mind,” as articulated in the Toa Re Mission
Statement. We look forward to your ongoing support going forward.
We decided to issue this year’s publication exclusively in electronic form, in recognition of the rolethat we all have in considering the environment and sustainability. I hope that our publication
continues to provide a greater insight into the Japanese insurance market, and I would like to express
my gratitude to all who kindly contributed so much time and effort towards its making.

Masaaki Matsunaga
President and Chief Executive
The Toa Reinsurance Company, Limited1

1.
1. Introduction

2. Damage Causedby Large Typhoons

Typhoon Damage and Countermeasuresagainst Storm Surge Inundation in Japan
Daiki Sakamoto
Chief Consultant, Science Solutions Division
Mizuho Research & Technologies, Ltd.

Japan must deal with many natural disasters, including earthquakes andtsunamis. Among those disasters, typhoons cause damage in the form of housing
and facility destruction due to their strong winds, and river flooding and landslides
due to the heavy rain that accompanies them. Typhoons also cause damage throughmassive storm surge inundation. To identify areas at risk of flooding, Mizuho
Research & Technologies, Ltd. (MHRT) supports storm surge inundation modelingby quantitatively analyzing the effects of the storm surge and wave movement that
occur when large typhoons strike. This paper summarizes historical typhoon damage
in Japan and the current status of prediction systems with the aim of determining
areas subject to storm surge, and describes relevant MHRT initiatives.

2.1 Changes in the Number of Typhoons
Figure 1 charts the number of typhoons that have occurred annually since 1951,
when the Japan Meteorological Agency (JMA) began recording typhoonobservations. Figure 1 indicates that 20 to 30 typhoons occur annually, with someyear-to-year variance. Moreover, the figure shows that the trend has remained
basically the same in recent years.

Figure 1: Number of Typhoons by Year
Number of typhoons
50
40
30
20
10
0

1950

1960

1970

1980

1990

2000

2010

2020

Year
Source: Created by Mizuho Research & Technologies, Ltd. based on Digital Typhoon1

2.2 Japan’s Largest Typhoons
Figure 2 summarizes the scale and damage of four particular typhoons thatcaused significant damage in the past. The Muroto Typhoon, Typhoon Ida (theMakurazaki Typhoon), and Typhoon Vera (the Isewan Typhoon) are considered tobe the three largest typhoons to hit mainland Japan during the Showa Era, from1926 through 1989.

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The Toa Reinsurance Company, Limited — Japan’s Insurance Market 2023

Figure 2: Overview of the Largest Typhoons
Minimum
Maximum wind speed
barometric pressure
(m/s)
(hPa)

Human casualties(People)Property damage(Buildings)

Over 60

18,030493,897

865

51.3

6,208

363,727

Sep. 1959

895

84.9

44,0191,197,576

Sep. 1961

890

95.2

5,174

883,564

Name

Date

Muroto Typhoon

Sep. 1934

911.6(Landfall)Typhoon Ida

Sep. 1945

Typhoon Vera

Typhoon Nancy(Makurazaki Typhoon)(Isewan Typhoon)(Second Muroto Typhoon)

Source: Created by Mizuho Research & Technologies, Ltd. based on Digital Typhoon

The Muroto Typhoon struck Japan in September 1934, causing extensive
damage primarily in the Keihanshin region that encompasses Osaka, Kyoto andKobe. Data on the radius and speed of this typhoon are not available because it
occurred before JMA began collecting typhoon statistics in 1951. However, it isbelieved to be one of the largest typhoons to have struck Japan, so for the purpose of
making a map, the national government’s “Modeling Guidance for Preparing Storm
Surge Inundation Maps”2 assigns the estimated central atmospheric pressure of the
Muroto Typhoon as the central atmospheric pressure for the assumed largest
typhoon. A description of the “Modeling Guidance for Preparing Storm Surge
Inundation Maps” follows in Section 3.2 below.
Typhoon Ida struck Japan in September 1945, causing extensive damage
primarily in the Kyushu, Chugoku, and Shikoku regions in western Japan. A lack ofweather information and Japan’s inadequate disaster prevention system immediately
after the end of World War II exacerbated Typhoon Ida’s extensive damage. As with
the Muroto Typhoon, detailed data is not available for Typhoon Ida because it
struck before JMA began collecting typhoon statistics.
Typhoon Vera struck in September 1959, causing damage primarily in the Kii
Peninsula and Tokai regions in central Japan. This typhoon is known in Japanese as
the Isewan Typhoon. Its central atmospheric pressure at the time of landfall was
929hPa, the second lowest (after the 925hPa of Typhoon Nancy, described later)
since JMA began collecting typhoon statistics. Typhoon Vera’s storm radius andspeed were greater than those of Typhoon Nancy, so when preparing a map, the“Modeling Guidance for Preparing Storm Surge Inundation Maps” suggests using
the storm radius and speed data of Typhoon Vera for the assumed largest typhoon.
Typhoon Nancy struck in September 1961. Its name in Japanese is the Second
Muroto Typhoon because it resembled (the first) Muroto Typhoon in scale andtrajectory. As mentioned above, the central atmospheric pressure of 925hPa at thetime of landfall was the lowest since JMA began collecting statistics, and the31. Typhoon Damage and Countermeasuresagainst Storm Surge Inundation in Japan

typhoon primarily caused damage in the Osaka Bay area. Although similar in scale
to Typhoon Vera, the country had learned from the experience of Typhoon Vera andall areas of Japan had implemented disaster countermeasures. Damage from
Typhoon Nancy was therefore significantly less than from Typhoon Vera, which
confirmed the effectiveness of the countermeasures to natural disasters.
Figure 3 shows each typhoon’s track and central atmospheric pressure. As
mentioned above, no data is available for the Muroto Typhoon and Typhoon Ida, so
the figure only presents track data for those typhoons.

Figure 3: Storm Tracks of Japan’s Largest Typhoons

Typhoon Nancy

Typhoon Ida
Central atmosphericpressure (hPa)1,006.00

Typhoon Vera

Muroto Typhoon（Isewan Typhoon）

977.00948.00919.00890.00Source: Created by Mizuho Research & Technologies, Ltd.

2.3 Typhoon Damage in Recent Years
Figure 4 summarizes the typhoons that have caused significant damage since
2000. Figure 5 shows the track of each typhoon.
In 2004, Typhoon No. 16 (Chaba) and Typhoon No. 18 (Songda) both madelandfall in the Kyushu and Chugoku regions, causing great damage. Hiroshima
Prefecture suffered damage from both typhoons, and as a result the prefectural
government created and released the Storm Surge Inundation Map described later.

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The Toa Reinsurance Company, Limited — Japan’s Insurance Market 2023

Typhoon No. 7 (Prapiroon) in 2018 brought record rainfall over a wide area ofwestern Japan, exacerbated by a seasonal rain front. The heavy rain caused morethan 200 deaths, prompting JMA to dub this event “The Torrential Rains of July
2018.”
Typhoon No. 21 (Jebi) in 2018 traversed the Kinki region while maintaining its
strength, causing great damage to the region. At Kansai International Airport, atanker drifting due to strong winds collided with a connecting bridge, completely
closing and isolating the airport. Commercial facilities on man-made islands such as
Rokko Island and Port Island also suffered extensive storm surge inundation.
Moreover, in 2019 Typhoon No. 15 (Faxai) and Typhoon No. 19 (Hagibis)
both struck the Kanto region. Typhoon Faxai caused large-scale power outages anddamage to houses, primarily in Chiba Prefecture, and Typhoon Hagibis caused
enormous widespread damage, including the destruction of 10 Hokuriku
Shinkansen train carriages due to flooding on the Chikuma River. The memory ofthis damage remains fresh.
These typhoons caused significantly fewer human casualties and less property
damage than the typhoons mentioned in Section 2.2 above, which indicates thatdisaster prevention measures have made good progress in various parts of Japan. In
2018 and 2019, however, the media widely covered major damage that occurred inurban areas, and people are increasingly concerned that typhoons will become larger
due to rising sea temperatures brought on by global warming in recent years. Onceagain, the focus of attention is on disaster countermeasures for typhoons.

Figure 4: Overview of Large Typhoons since 2000
Name

Date

Minimum barometricpressure(hPa)

Maximum wind
speed
(m/s)

Human casualties(People)Property damage(Buildings)

Typhoon 16, 2004 (Chaba)Aug. 2004

910

56.6

303

55,208Typhoon 18, 2004 (Songda)

Sep. 2004

925

48.9

1,411

67,492Typhoon 23, 2004 (Tokage)Oct. 2004

940

43.7

803

74,085Typhoon 7, 2018 (Prapiroon)

Jul. 2018

960

33.4

755

51,110Typhoon 21, 2018 (Jebi)

Sep. 2018

915

54.0

994

98,617

Typhoon 15, 2019 (Faxai)

Sep. 2019

955

43.7

153

77,104

Typhoon 19, 2019 (Hagibis)

Oct. 2019

915

54.0

596

91,652

Source: Created by Mizuho Research & Technologies, Ltd. based on Digital Typhoon51. Typhoon Damage and Countermeasuresagainst Storm Surge Inundation in Japan

Figure 5: Storm Tracks of Recent Large Typhoons
Typhoon 18, 2004 (Songda)

Typhoon 16, 2004 (Chaba)

Typhoon 7, 2018 (Prapiroon)

Typhoon 23, 2004 (Tokage)

Typhoon 15, 2019 (Faxai)
Central atmosphericpressure (hPa)1,008.00

984.75961.50Typhoon 19, 2019 (Hagibis)
Typhoon 21, 2018 (Jebi)

938.25915.00Source: Created by Mizuho Research & Technologies, Ltd.

3. Storm Surge
Damage andDamageAssumptions

6

3.1 Storm Surge Damage
Typhoons, with their strong winds, cause damage such as the destruction ofbuildings (with concomitant human casualties), and landslides (with concomitant
property damage) caused by river flooding due to heavy rain. They also cause storm
surge damage. In general, a typhoon has a suction effect as it moves toward landbecause its low pressure lifts the sea level. Moreover, a typhoon also has a blowing
effect because the strong wind accompanying the typhoon blows from offshore to
onshore, moving seawater toward coastal areas. These effects raise tide levels in thephenomenon known as storm surge. In addition, a typhoon raises the tide level themost when it moves through an area at high tide, increasing the likelihood ofdamage. Waves generated by strong winds can intensify the resulting storm surge,
enabling it to overtop coastal embankment installations and cause flood damage
over a wide area.

The Toa Reinsurance Company, Limited — Japan’s Insurance Market 2023

3.2 Local Government Initiatives to Update Hypothetical Storm Surge
Inundation Maps
With the aim of enhancing evacuation systems and reducing damage in theevent of storm surge, the May 2015 revision of the Flood Prevention Act establisheda new system to publicize expected flood zones in the event of the largest possible
storm surge. Pursuant to this revision, in July 2015 the Ministry of Agriculture,
Forestry and Fisheries and the Ministry of Land, Infrastructure, Transport andTourism released the “Modeling Guidance for Preparing Storm Surge Inundation
Maps ver. 1.00.”2 This guidance outlines the process for creating hypothetical storm
surge inundation maps to promote storm surge countermeasures by local
governments. In addition, the “Modeling Guidance for Preparing Storm Surge
Inundation Maps ver. 2.00”3 was published in June 2020. It incorporated knowledge
and learning from each prefecture since the release of version 1.00. Local
governments draw on this guidance to prepare hypothetical storm surge inundation
maps, with an emphasis on large cities. Figures 6 and 7 summarize related
prefectural initiatives. In western areas of Japan, more proactive initiatives are being
undertaken on an ongoing basis, reflecting the tendency for typhoon damage to begreater in western Japan than in eastern Japan. In addition to storm surge, disasters
related to coasts and rivers include tsunamis and river flooding. Each prefecture
along the coast is proceeding with tsunami-related measures, while all prefectures
throughout the country have modeled hypothetical inundation maps regarding
possible inundation from flooding near rivers and other water-related districts.

Figure 6: Prefectures with Hypothetical Storm Surge Inundation Maps (As of June 2020)
Overview

Prefecture (Year the map was issued)

Issued hypothetical storm surge inundation maps, orplanned to issue after publication of the Modeling
Guidance for Preparing Storm Surge Inundation Maps

Kumamoto (2017), Fukuoka (2019), Tokushima (2020),
Yamaguchi (2020), Hyogo (2019), Osaka (2020), Mie(planned for 2020), Tokyo (2018), Kanagawa (2019),
Chiba (2018)

Issued hypothetical storm surge inundation maps prior
to publication of the Modeling Guidance for Preparing
Storm Surge Inundation Maps

Okinawa (2006), Saga (2014), Kagawa (2004), Hiroshima(2004), Aichi (2014)

Source: Created by Mizuho Research & Technologies, Ltd.

7

1. Typhoon Damage and Countermeasuresagainst Storm Surge Inundation in Japan

Figure 7: Prefectural Hypothetical Storm Surge Inundation Initiatives(As of June 2020)
Issued hypothetica l storm surge inundation maps, or planned to issue af ter
publication of the Modeling Guidance for Preparing Storm Surge Inundation Maps
Issued hypothetical storm surge inundation maps prior to publication of theModeling Guidance for Preparing Storm Surge Inundation Maps
Have not hypothesized storm surge inundation maps, but have issued hypotheticaltsunami inundation maps

Source: Created by Mizuho Research & Technologies, Ltd.

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The Toa Reinsurance Company, Limited — Japan’s Insurance Market 2023

4. Simulation
Technology for
Modeling Storm
Surge Damage
and MHRT
Initiatives

Storm surge damage models use simulation technology because they requirepredictions of the size of waves that would impact coastal facilities in the path of atyphoon on the scale of the largest in history. Simulation parameters for such atyphoon include the effect of waves generated by the wind and the increase in tidelevel due to the passage of a typhoon as discussed in Section 3. Results are combined
to create a hypothetical storm surge inundation map.
Figure 8 summarizes the steps and flow of the mainstream simulation techniqueused to create the storm surge damage model. Estimates of storm surge damage
begin with estimates of the atmospheric pressure and wind speed when a typhoon
passes, and take into consideration the topographical characteristics of eachparticular region. This provides the pressure field and wind field needed to estimate
factors including the typhoon’s wind-driven wave height and direction, along with
the increase in tide level and the associated inundation in an array of locations. The
former is called wave estimation and wave deformation, and the latter is calledstorm surge inundation calculation. The subsequent results make it possible toestimate the elevation of the sea level produced by waves at the shoreline when they
strike a structure such as an embankment (run-up height calculation), and thedegree to which the wave will overtop the embankment and surge inland (overtop
calculation). Among these, storm surge inundation calculations, wave estimation
and wave deformation are particularly important in modeling storm surge damage.
MHRT has technology for simulating tsunamis, storm surge, and otherphenomena relevant to the field of coastal engineering. We are addressing thegrowing need to develop storm surge damage models in response to the large-scale
damage caused by the large typhoons of recent years, as outlined in Section 2 above.
This section provides a summary example of wave estimation and storm surge
inundation calculation for a storm surge damage model.

Figure 8: Mainstream Simulation Technique Used for Storm Surge Damage
ModelsPressure field and wind field estimates

Storm surge inundation calculation

Wave estimation and wave deformation

Run-up height calculation

Overtop calculation

Source: Created by Mizuho Research & Technologies, Ltd.

9

1. Typhoon Damage and Countermeasuresagainst Storm Surge Inundation in Japan

4.1 Wave Estimation
This part of the example employs Simulating WAves Nearshore (SWAN), a
third-generation wave estimation model, to analyze Typhoon No. 19 (Hagibis),which struck in 2019, and compare it with the observed values of the Nationwide
Ocean Wave information network for Ports and HArbourS (NOWPHAS). Figure 9
presents comparisons with observed values at the three locations of Omaezaki,
Shimizu, and Shimoda. Figure 10 shows the wave heights at each location,
confirming that wave estimation calculation results were able to basically recreate
the tendency for observed values for wind to intensify and wave height to increase asa typhoon approaches. Moreover, Figure 11 shows the distribution of significant
wave height and mean wave period for Omaezaki at 17:00 on October 12, 2019
when the significant wave height reached its maximum according to the calculation
results.

Figure 9: NOWPHAS Observation Points

Shimizu

Omaezaki

Source: Created by Mizuho Research & Technologies, Ltd.

10

ShimodaThe Toa Reinsurance Company, Limited — Japan’s Insurance Market 2023

Figure 10: Comparison of Observed Values and Calculation Results(Top: Omaezaki; Middle: Shimoda; Bottom: Shimizu)
Significant wave height (m)108Observed value
Calculation results

6
4
2
0
0:00
Oct. 9, 2019

12:00
Oct. 9, 2019

0:00
Oct. 10, 2019

12:00
Oct. 10, 2019

0:00
Oct. 11, 2019

12:00
Oct. 11, 2019

0:00
Oct. 12, 2019

12:00
Oct. 12, 2019

0:00
Oct. 13, 2019

12:00
Oct. 13, 2019

0:00
Oct. 12, 2019

12:00
Oct. 12, 2019

0:00
Oct. 13, 2019

12:00
Oct. 13, 2019

0:00
Oct. 12, 2019

12:00
Oct. 12, 2019

0:00
Oct. 13, 2019

12:00
Oct. 13, 2019

Time (JST)Significant wave height (m)108Observed value
Calculation results

6
4
2
0
0:00
Oct. 9, 2019

12:00
Oct. 9, 2019

0:00
Oct. 10, 2019

12:00
Oct. 10, 2019

0:00
Oct. 11, 2019

12:00
Oct. 11, 2019

Time (JST)Significant wave height (m)108Observed value
Calculation results

6
4
2
0
0:00
Oct. 9, 2019

12:00
Oct. 9, 2019

0:00
Oct. 10, 2019

12:00
Oct. 10, 2019

0:00
Oct. 11, 2019

12:00
Oct. 11, 2019

Time (JST)
Source: Created by Mizuho Research & Technologies, Ltd.

11

1. Typhoon Damage and Countermeasuresagainst Storm Surge Inundation in Japan

Figure 11: Calculation Results at 17:00 on October 12, 2019
(Left: Significant wave height; Right: Mean wave period)

35'00'

35'00'

34'30'

34'30'

(m)

(s)

15
34'00'

12

15
34'00'

129933'30'

33'30'
6

3

33'00'

137'30'

138'00138'30

139'00139'300

6

3

33'00'

137'30'

138'00138'30

139'00139'300

Source: Created by Mizuho Research & Technologies, Ltd.

Figure 12: Japan Meteorological Agency Observation Points

Tokyo

Toba

Omaezaki

Source: Created by Mizuho Research & Technologies, Ltd.

4.2 Storm Surge Inundation Calculation
This part of the example employs MHRT’s proprietary tsunami storm surge
simulator Q-Wave® to analyze Typhoon No. 19 (Hagibis) in 2019 and compare theresulting data for change in tide level due to a typhoon (hereinafter, “tide level
deviation”) with published data derived from JMA observations. Figure 12 shows
the three locations of Toba, Omaezaki and Tokyo to compare Q-Wave data and data
published by JMA. Figure 13 shows tide level deviation at each location, confirmingthat storm surge inundation calculation results were able to basically recreate thetendency for tide levels to rise when wind intensifies as a typhoon approaches andatmospheric pressure drops. Figure 14 presents a tide level deviation distribution
map.
12

The Toa Reinsurance Company, Limited — Japan’s Insurance Market 2023

Figure 13: Comparison of Calculation Results and Observed Values(Top: Toba; Middle: Omaezaki; Bottom: Tokyo)
Tide level deviation (cm)250
200

Calculation results
JMA published data

150
100
50
0
-50
-100
00:00
03:00
06:00
09:00
12:00
12:00
15:00
18:00
21:00
00:00
03:00
06:00
09:00
12:00
15:00
18:00
21:00
Oct. 11 Oct. 11 Oct. 11 Oct. 11 Oct. 12 Oct. 12 Oct. 12 Oct. 12 Oct. 12 Oct. 12 Oct. 12 Oct. 12 Oct. 13 Oct. 13 Oct. 13 Oct. 13 Oct. 13

Date (JST)Tide level deviation (cm)250
200

Calculation results
JMA published data

150
100
50
0
-50
-100
00:00
03:00
06:00
09:00
12:00
12:00
15:00
18:00
21:00
00:00
03:00
06:00
09:00
12:00
15:00
18:00
21:00
Oct. 11 Oct. 11 Oct. 11 Oct. 11 Oct. 12 Oct. 12 Oct. 12 Oct. 12 Oct. 12 Oct. 12 Oct. 12 Oct. 12 Oct. 13 Oct. 13 Oct. 13 Oct. 13 Oct. 13

Date (JST)Tide level deviation (cm)
250
200
150

Calculation results
JMA published data
JMA empirical formula

100
50
0
-50
-100
00:00
03:00
06:00
09:00
12:00
12:00
15:00
18:00
21:00
00:00
03:00
06:00
09:00
12:00
15:00
18:00
21:00
Oct. 11 Oct. 11 Oct. 11 Oct. 11 Oct. 12 Oct. 12 Oct. 12 Oct. 12 Oct. 12 Oct. 12 Oct. 12 Oct. 12 Oct. 13 Oct. 13 Oct. 13 Oct. 13 Oct. 13

Date (JST)
Source: Created by Mizuho Research & Technologies, Ltd.

13

1. Typhoon Damage and Countermeasuresagainst Storm Surge Inundation in Japan

Figure 14: Tide Level Deviation Distribution Map
Oct. 12, 2019, 14:00

Oct. 12, 2019, 18:00

Oct. 12, 2019, 22:00

1.00

1.00

1.00

0.50

0.50

0.50

0.00

0.00

0.00

-0.50

-0.50

-0.50

-1.00

-1.00

-1.00

Source: Created by Mizuho Research & Technologies, Ltd.

5. Conclusion

This paper summarized the damage caused by major typhoons of the past,collated the initiatives of local governments to deal with storm surge, and presented
examples of MHRT simulations related to storm surge. Many local governments are
drawing on “Modeling Guidance for Preparing Storm Surge Inundation Maps”
published by the Ministry of Agriculture, Forestry and Fisheries and the Ministry ofLand, Infrastructure, Transport and Tourism to model storm surge inundation
maps, but governments in some areas have not kept up. MHRT is committed tocontributing to progress by deploying its technology to help model storm surge
inundation maps for local governments and reduce storm surge damage.
References
1. Digital Typhoon Homepage, http://agora.ex.nii.ac.jp/digital-typhoon/
2. Ministry of Agriculture, Forestry and Fisheries, Ministry of Land,
Infrastructure, Transport and Tourism, “Modeling Guidance for Storm Surge
Inundation Maps ver. 1.00” (2015)
3. Ministry of Agriculture, Forestry and Fisheries, Ministry of Land,
Infrastructure, Transport and Tourism, “Modeling Guidance for Storm Surge
Inundation Maps ver. 2.00” (2020)
4. Daiki Sakamoto, Hideto Yoshimura, Kazuhiro Araki, Takashi Manabe, “WavePrediction and Analysis of Typhoon 19 in 2019 by Using SWAN,” Technical
Report of Mizuho Research & Technologies, Ltd. Vol.1, No.1, (published
September 2021)
5. Hideto Yoshimura, Daiki Sakamoto, Kazuhiro Araki, Takashi Manabe,“Numerical Simulation of the Storm Surge Induced by Typhoon 1919 by Using
Tsunami and Storm Surge Simulator Q-Wave®,” Technical Report of Mizuho
Research & Technologies, Ltd., Vol.1, No.1 (published in September 2021)
Note: Q-Wave® is a registered trademark of Mizuho Research & Technologies, Ltd.

14

2.
1. Executive
Summary

2. Macroeconomic
Environment

Learning to Work with IFRS 17
Johan Broek
Managing Director, Guy Carpenter & Company

The new rules are likely to impact the entire value chain of (re)insurers and put
additional pressures on capital, dividends, liquidity and operational costs that are
already under stress from the COVID-19 pandemic. All key business functions willneed to develop sound understanding of key International Financial ReportingStandards (“IFRS 17”) concepts in order to support informed policy choices andoperational decisions.
IFRS 17 was issued by the International Accounting Standards Board in May
2017 and has an effective date of January 1, 2023. Most insurers in Asia-Pacific are
adopting IFRS 17 in 2023 or in the years that follow. However, Japanese insurers are
not required to adopt IFRS 17.
IFRS 17 is a comprehensive, truly international IFRS Standard. It allows
comparability with global peers. Japanese insurers are becoming global players andkey stakeholders will need to be able to compare the financial results of Japanese
insurers against their international counterparts.
Companies whom choose for adopt IFRS 17 will see fundamental change totheir existing insurance accounting practices. They will need to approach thetransition to the new requirements standards from many different perspectives andthe transition will take time and efforts.

High inflation in many countries, driven by both supply-side and demand-side
factors, has compelled central banks to raise interest rates in response. Interest rate
hikes then flow directly into asset valuations. Additionally, recessionary expectations,the banking crisis, and geopolitical issues are currently creating havoc in asset
markets.
These issues largely impact insurers and reinsurers through increasing costs(both direct operating and claim costs, some through imported inflation) anddeclining asset prices on investment holdings. This impact has resulted in an
increase in earnings volatility and reduction in capital (Figure 1).
The failures of Silicon Valley Bank (SVB), Signature Bank, and First Republic
Bank may represent a weakness in the US banking industry and have led to theheavily discounted rescue of Credit Suisse by UBS. Such shocks may further reduce
available capital in the market, impacting the balance sheets of insurers that holdinvestments issued by banks and reducing the ability to raise new funds.
Additionally, growing catastrophe losses (Figure 2) and lower investment returns
have led to reductions in capital, resulting in a hardening market and pricing
concerns. As a result, most insurers have increased retentions, which will ultimately
lead to greater retained earnings volatility.

15

2. Learning to Work with IFRS 17

Figure 1: Estimated Total Dedicated Reinsurance Capital
Traditional capital
Alternative capital(USD billion)

600

571
521
484

500

400

368
48

400

400

60

68

420
75

432

436

87

95

96

92

505
96

90

300

200
320

340

332

345

345

341

2013

2014

2015

2016

2017

2018

394

429

475
409

100

0

2019

2020

2021

2022E

Source: Guy Carpenter, AM Best

Figure 2: Global Significant Insured Losses (2013 to 2022)
Q1

Q2

Q3

Q4

Reported COVID-19 losses

Losses from Russia-Ukraine conflict(USD billion)

160

141.3
140

119.4

120
100

125.5

126.4

2020

2021

88.9

80

63.8
52.8

60
40

39.8

33.0

32.3

2014

2015

20
0

2013

2016

2017

Significant Insured Losses (Est. losses> USD100 million);
Source: Guy Carpenter, PCS, PERILS, Verisk, ICA;
Losses from Russia and Ukraine conflict are estimated by S&P Global

16

2018

2019

2022

The Toa Reinsurance Company, Limited — Japan’s Insurance Market 2023

Given the macroeconomic environment, the successful transition to IFRS 17
has become ever more important.
The new financial reporting standard for insurance contracts, IFRS 17, became
effective for most reporting jurisdictions on January 1, 2023. The change is a major
overhaul of existing practices and aims for higher transparency and comparability
between insurers. In late 2022, European-headquartered insurance groups held
investor education events to explain the expected impact of IFRS 17 transition on
their future results and financial position.
Insurers reaffirmed their previously disclosed strategic direction and targets, but
indicated some rebasing of key performance measures. Risk appetite and capitalmanagement (including solvency ratios) are not affected, but changes are expected
in return on equity, leverage, and combined ratios. The range of the expectedchange in key ratios is relatively wide and depends on each insurer’s business mix
and the degree of alignment between accounting policy choices and approaches toasset-liability management (“ALM”).
IFRS 17 represents an evolution in financial reporting, but also has greaterknock-on impacts, such as day-1 transition implications on available capital for riskbased capital (dependent on changes in regulatory reporting) and dividend issuancepotential. Further, requirements for poorly performing businesses may result ingreater earnings and capital volatility–insurers will have to recognise losses up-front
for loss-making contract groupings.
IFRS 17 will be adopted in many jurisdictions in Asia-Pacific beginning in
2023, with others following from 2024 to 2026. Regulators in the region are also
assessing the impacts of IFRS 17 to their risk-based capital standards, with some,such as Malaysia, already appearing to integrate IFRS 17 into future versions. In
other major jurisdictions such as the EU, UK, and Canada, IFRS 17 is to be
adopted in 2023.
The Accounting Standards Board of Japan (ASBJ) has not adopted IFRS and is
not intending to adopt IFRS 17. Japanese companies who report using JGAAP are
not required to adopt IFRS 17, however several insurers are strongly considering the
adoption of IFRS, with the Sony Financial Group adopting IFRS 17 in FY2023.

17

2. Learning to Work with IFRS 17

IFRS 17 Adoption (Asia Pacific Map)

Adopting IFRS 17 in 2023 (or equivalent)
Adopting IFRS 17 in 2024
Adopting IFRS 17 in 2025
Adopting IFRS 17 in 2026
IFRS 17 adoption not mandatory

18

The Toa Reinsurance Company, Limited — Japan’s Insurance Market 2023

There are a number of significant challenges if IFRS 17 is to be implemented inJapan, namely:• Catastrophe reserves will no longer be permitted under IFRS 17.
• If most of the premium has been recognised as income on long-term/life
business under JGAAP, then it will need to be taken out of Shareholders’Equity upon transition and made a liability. It would improve ROE, butworsen Leverage ratios (i.e., giving the appearance of increased financial
indebtedness), and potentially dividend payout ability. For the long-term firebusiness, which is considered unprofitable, the one-time impact on
Shareholders’ Equity is not recoverable.
• “Onerous business” can heighten income volatility through the change in thetiming of loss recognition.
• Opening Shareholders’ Equity will be impacted by the adoption of IFRS,
with IFRS 17 being a significant impactor.
• Key performance indicators (“KPI’s”) commonly used to measure businessperformance will change significantly, leading to an incongruence offinancial measures and difficulties in fully understanding financial
performance in the short-run.

3. Loss ofCatastrophe
Reserves

Under IFRS 17, Catastrophe reserves previously used to smooth losses arisingfrom catastrophic events will no longer be permitted for use for financial reporting.
Upon adoption to IFRS 17, catastrophe (and other contingent underwriting)reserves will have the following impact: Net Assets will be increased by the funds
within these underwriting reserves as these reserves are reduced to nil on the
opening Balance Sheet. Underwriting performance will become more volatile as the“smoothing effect” of these catastrophe and contingent results is removed.
Reinsurance can assist in the reduction of volatility due to the elimination ofcatastrophe reserves:• Cat covers with higher coverage and/or lower attachment points• Aggregate XOL programmes to counteract the impacts of accumulated cat
losses• Parametric coverage which activates recovery based upon reaching certain
milestones
These covers will need to take into consideration the cost of reinsurance versus
the additional protection afforded from an economical point of view.

192. Learning to Work with IFRS 17

4. Onerous
Contracts

20

IFRS 17 defines an onerous contract as: “An insurance contract is onerous at
the date of initial recognition if the fulfilment cash flows allocated to the contract,
any previously recognised insurance acquisition cash flows and any cash flows
arising from the contract at the date of initial recognition in total are a net outflow.”– IFRS 17.47.
Under IFRS 17, the loss component on onerous (loss making) contracts must
be recognised as a loss upon inception. As a simple example a policy with 100 dollar
premiums, 20 dollar commissions, and 90 dollar expected losses, an insurer must
recognise the loss of 10 dollars as soon as the policy is incepted (or on the policy
purchase date if inception is subsequent).
The economics of the contract does not change, however the timing of thelosses changes. Rather than the loss being incurred over time and smoothened
against other profitable insurance contracts, IFRS 17’s requirement for recognising
immediate losses on an onerous contract will increase income volatility. Increased
volatility may result in knock-on effects to shareholder value such as reduced Priceto Book ratios and the ability to meet consistent dividend payout ratios toshareholders.
The recognition of onerous business upon transition to IFRS 17 (i.e., impact onretained earnings) will reduce shareholders’ equity and result in a short-term impact
on dividend payout ratios.
Increased reinsurance recovery on day 1 losses can be achieved by altering
reinsurance structures to reduce impact of loss making business. Proportional
reinsurance will cover onerous business on a proportional basis. Non-proportional
reinsurance may be more targeted in reducing the impact of onerous business.
However, doing so may increase reinsurance costs or ceding more business that is
profitable (although the effects are not immediate). Internally, insurers can help
reduce the risk of onerous business through: Enhanced data collection and analysis;
Improvement of underwriting policies in terms of pricing and risk acceptance;
Better allocation of overhead costs.

The Toa Reinsurance Company, Limited — Japan’s Insurance Market 2023

5. Shareholders’Equity Impact –Day 1 Transition
to IFRSIn transitioning to IFRS, IAS 8: Accounting Policies, Changes in Accounting
Estimates and Errors requires that a company adjust its Opening Balance Sheet as if
IFRS was always used. Items that will impact Opening Retained Earnings:

Item

Impact on R/E

Catastrophe and contingency reserves no longer permitted

Active onerous contracts upon adoption in 2023

Reinsurance in-force at 2023

Goodwill amortisation reversal; impairment losses

Increase in Insurance Liabilities

Recognition of credit risk

The Impact of the transition to IFRS will mean that Shareholders’ Equity (Net
Assets) needs to be restated which may have the following impacts:• Altered return on equity ratios, greater metric volatility• Potentially impacts on Capital strength and efficiency• Inability to pay the same or increase dividend payout ratios• Uncertainty over financial performance and balance sheet composition
Reinsurance will be limited in its approach to soften the impact of non-IFRS 17changes, however it can be utilised for other impacts because of adopting IFRS:• Aggregate XOL, Excess of Loss, and additional Cat XOL to mimiccatastrophe and contingency reserves• Retroactive cover to reduce the impact of onerous contracts (or the risk ofthem becoming onerous)• Restructured reinsurance to assist in optimising risk adjustment transfer• Use of highly rated reinsurance panels to minimise credit risk

21

2. Learning to Work with IFRS 17

6. Changing Key
Performance
Indicators

IFRS 17 moves from assessing insurance on a purely accounting year basis, tomeasuring contracts more from an underwriting year basis. Significant change in
how the key performance indicators (“KPI’s”) will be measured. Some affected KPIs
are: Loss Ratio; Combined Ratio; Return on Equity, & Return on Assets.
The majority of the insurers will have improved ROE under IFRS 17 (withrevised targets at low- to mid-double-digit ratios). IFRS 17 does not change
ultimate profit but specifies new rules on the timing of profit recognition in theaccounts (for selected Life products, profit could be recognised earlier than currently
under JGAAP). Most non-life insurers have not disclosed the direction or size of
ROE expected change but anticipate the share of underwriting income in total P&L
to increase and the share of insurance finance income to decrease (as discountunwind on reserves offsets return on investment assets).
IFRS 17 requires insurers to discount liabilities at the current interest rates. As aresult for non-life companies, market volatility from fluctuating asset values is more
mitigated. In Japan under ALM it will become more crucial where many of their
liabilities overseas will be subject to a higher interest rates than what they can earn athome.
Many insurers have indicated the plan to disclose ‘‘adjusted ROE’’ alongside the‘‘standard’’ ratio (derived from the reported financial accounts) by eliminating theimpact of net unrealized gains or losses from investment assets and liabilities,
hedging instruments and FX translation. To illustrate, Figure 3 shows how
differently insurers are measuring combined ratios:

Figure 3: Combined Ratio Measurement Options from IFRS 17 Reporting

Net / Gross CoR

Net / Net CoR[Insurance claims gross+ insurance expenses+ net reinsurance result #][Insurance claims gross - (reinsurance recoveries+ ceding commissions contingent on claims)+ insurance expenses]

Insurance revenue gross[Insurance revenue gross- (ceded reinsurance premiums- ceding commissions not contingent on claims)]# net reinsurance result = ceded premium- (all ceding commissions + claims recoveries)

22

The Toa Reinsurance Company, Limited — Japan’s Insurance Market 2023

The resulting impact may alter Analysts’ view of the financial results of thecompany as well as the resulting share valuation:• Altered Return on Equity balances, thereby shifting the expectation of theirreturns• Inability to pay the same or increase dividend payout ratios as previous
Further, given the significant changes in key performance indicators, thefollowing internal issues may arise:• Difficulty in the Board of Directors understanding financial results, andmaking key decisions as a result• Changes in how the performance in management is assessed• Given that the KPI’s will change upon transition, there will be little inprevious benchmarking to assist management and Boards to make key
decisions
Currently the management of new KPI’s is unclear given the significant changes
presenting themselves, however the following actions can assist in beginning toaddress the changing KPI’s:• Review and address key terms and clauses that may heighten uncertainty for
KPI measurement such as profit commission and loss corridors• IFRS 17 will draw more attention to current underwriting decisions. Morestringent underwriting criteria may be required to safeguard results• Greater data granularity will improve pricing and as a result improve
profitability
In summary, the following messages from IFRS studies are common for all
insurers:• Business strategy is not affected. No major change expected in underwriting& investment risk appetite.
• Better alignment with risk-based capital regimes and no notable impact onsolvency ratios.
• No change to cash generation/remittances, or share buy-backs (wherepreviously announced).
• Key financial targets reaffirmed. Traditional P&C KPI’s remain in use but arecalculated on an IFRS 17 basis. New adjustments (varying practices) for
ROE and Leverage calculations.
• Minimal equity effect on transition. Equity: more stable (less sensitive tointerest rate changes). P&L: changed mix of underwriting and financeresults; more P&C volatility (depending on accounting choices), greatertransparency over asset-liability management (including non-life)23

2. Learning to Work with IFRS 17

7. Why Should
Japanese Insurers
Adopt IFRS 17?

While the adoption of IFRS, and by extension, IFRS 17 has its challenges as
raised above, there are many advantages of implementing these standards:• Comparability with global peers: Japanese insurers are becoming global
players and key stakeholders will need to be able to compare the financial
results of Japanese insurers against their international counterparts• Increased transparency: IFRS adoption requires a significant increase in thedisclosure of financial information. While adding to the running costs offinancial reporting, it provides investors and regulators alike richer key
information from which to make decisions• Increased access to capital, financial, and reinsurance markets: Increased
financial transparency and comparability will help Japanese insurers
continue to have first class access to financial markets for additional
fundraising and to reinsurance markets for capacity and volatility protection• Greater consistency with local statutory reporting overseas and groupreporting: Many Japanese insurers have subsidiaries abroad who on a local
basis will need to report using IFRS, and therefore, IFRS 17. Adopting IFRS
on a group basis will eliminate the gaps and dual reporting that many ofthese entities are challenged with• Stronger enterprise value: While not a given, increased comparability,transparency, access to capital, and lower costs from reporting synergies
should assist in the strengthening of enterprise value of Japanese insurers
upon adoption of IFRS
Guy Carpenter employs a range of IFRS experts and is willing to assist clients insuccessfully navigating the road ahead.

24

3.
1. Overview of the
Non-Life
Insurance
Industry

Trends in Japan’s Non-Life
Insurance Industry
Non-Life Planning Department
The Toa Reinsurance Company, Limited(1) Status of Non-Life Insurance Companies, Cooperatives and
SASTI
As of November 1, 2022, a total of 55 general insurance companies wereoperating 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.1
Japan began liberalizing its insurance industry with the financial big bang in
1996. Its non-life insurance companies have increased operating efficiency sincethen while conducting mergers and business integrations in stages. As a result, thenon-life insurance market has become an oligopoly comprising the three largest
non-life insurance groups (in alphabetical order; MS&AD Insurance Group
Holdings, Inc., Sompo Holdings, Inc. and Tokio Marine Holdings, Inc.). Based on
statistics released by the General Insurance Association of Japan (GIAJ) and thefiscal 2022 financial results disclosed by these groups, we calculate that these threegroup companies account for more than 86% of net premium income written by
the 29 GIAJ members, totaling 9,119 billion yen.2,3,4,5
The market also includes cooperative and mutual insurance companies (referred
to as “Kyosai Organizations”), who offer fire, life, personal accident, automobile andannuity products. The kyosai is a mutual aid system where the members share theirpremium to establish mutual assets, and the funds are paid out at times of
unexpected contingencies to compensate for the financial deficit and stabilize thelives of the members and their families. The main Kyosai Organizations that makeup the Japan Cooperative Insurance Association Incorporated had premium incomeof about 2.4 trillion yen in fiscal 2021 in total of fire, personal accident andautomobile kyosai products (excluding life and annuity kyosai products) according
to our calculation.6
In another development, the Small Amount and Short Term Insurance(“SASTI”) business was introduced in Japan following an amendment to theInsurance Business Act in April 2006. SASTI companies, who are limited to sellinginsurance products in small amounts with limited terms, provide non-life and/or life
insurance products. In fact, regulations make it much easier for SASTI companies toenter the insurance business than is the case of establishing a new insurancecompany. For example, SASTI companies need only to register and need not belicensed by the Financial Services Agency to operate. The minimum capital required
is 10 million yen, compared to 1 billion yen for an insurance company, and they
may sell both life and non-life insurance products. The number of member
companies of The Small Amount and Short Term Insurance Association of Japan
continues to grow and the scale of the market continues to expand. Non-life
insurance products sold in this market are mainly renters insurance, including fire
insurance for the home contents of renters and rental housing liability insurance
sold through the real estate agent channel, recent strong-seller pet insurance, andpecuniary insurance. Some SASTI companies have grown to the extent that they
may choose to get a license to operate as an insurance company, while some existing
non-life insurance companies have newly established SASTI companies.

25

3. Trends in Japan’s Non-Life
Insurance Industry

The Small Amount and Short Term Insurance Market Data
Figure 1: Member Companies

Figure 2: Premium Income

77(Total companies)(Total companies)
130
130

120

120

110

110

115
110
101

100

100 97(Billion (Billion
yen) yen)
130
130

101

103

115

110

120

120

110

110

107.4 107.4
103.2 103.2

100

100
92.3

90

90

90

90

80

80

80

80

70

70
2017

70

70
2017

2018 2019117.8 117.8

103

97

2017 20182019 2020

127.7 127.7

2020 2021

2021

92.3

2017 20182018 20192019 2020

2020 2021

2021

Source: The Small Amount & Short Term Insurance Association of Japan7(2) Trends in Business Results of Non-Life Insurance Companies for
Fiscal 20222
The following is a summary of the main financial results (total) of the 29 GIAJ
members in fiscal 2022.
Net premium income in all lines of business increased by 313 billion yen fromthe previous fiscal year to 9,119 billion yen, mainly due to fire class with revisions of
insurance products in October 2022.
Net claims paid increased by 672 billion yen to 5,383 billion yen because ofincreases in fire claims for natural disasters and in automobile claims as road traffic
recovered. As a result, the loss ratio increased by 5.6 percentage points to 64.9%.
Expenses increased by 81 billion yen to 2,975 billion yen, while the net expense
ratio decreased by 0.3 percentage points to 32.6% owing to the increase in net
premium income.
Underwriting profit decreased by 196 billion yen to 114 billion yen.
Ordinary profit, calculated as the sum of underwriting profit and investment
profit, decreased by 125 billion yen to 767 billion yen. After deducting tax expense,
net income also decreased, by 169 billion yen to 502 billion yen.

26

The Toa Reinsurance Company, Limited — Japan’s Insurance Market 2023

(3) Overseas Business Developments of the Three Largest Non-Life
Insurance Groups
The three largest non-life insurance groups have all positioned overseas businessas a growth driver, and have aggressively implemented initiatives such as forming
business alliances with foreign insurance companies and engaging in M&A.
Figure 3 shows overseas net premium income* for the three largest non-life
insurance groups which we calculate based on their released information. Their net
premium income from overseas business in fiscal 2022* was about 4 times that of
fiscal 2013, and overseas business accounted for approximately 32% of their net
premium income.
* In this section, “overseas net premium income” includes both non-life and life insurance
premiums.

Figure 3: Trends in Overseas Net Premium Income for the Three Largest NonLife Insurance Groups3,4,5(Billion yen)
5,000

(%)
35

4,500
30
4,000
25

3,500
3,000

20

2,500
15

2,000
1,500

10

1,000
5
500
0

0
2013

2014

2015

2016

2017
2018
(Fiscal year)

2019

2020

2021

2022

Overseas net premium income (left scale)
Tokio Marine Holdings, Inc.
MS&AD Insurance Group Holdings, Inc.
Sompo Holdings, Inc.
Percentage of overseas net premium income (right scale) (Total of the three groups including life insurance)27

3. Trends in Japan’s Non-Life
Insurance Industry

The three groups’ business developments in the non-life insurance segment are
as follows:
Mitsui Sumitomo Insurance Co, Ltd. acquired the general insurance operationsof U.K. company Aviva plc in 2004, and made Aviva its base for advancing into the
ASEAN region. In 2015, another MS&AD group company, Aioi Nissay Dowa
Insurance Co., Ltd., acquired Box Innovation Group, a major U.K. telematics
automobile insurer. Furthermore, MS&AD Insurance Group Holdings, Inc.
strengthened its reinsurance business and specialty lines by completing theacquisition of Amlin plc of the U.K. in 2016. It also acquired Singapore insurer,First Capital Insurance Limited in 2017, U.S. managing general agent, International
Transportation and Marine Office, LLC in 2021 and U.S. insurer, Transverse
Insurance Group, LLC in 2022.8
Since 2014, Sompo Holdings, Inc. has made significant progress in its overseas
business by acquiring leading U.K. specialty (re)insurer, Canopius Group Limited(later sold in 2017) and U.S. insurer and reinsurer, Endurance Specialty Holdings
Ltd. (now called Sompo International Holdings Ltd). Sompo International has been
their core company for doing overseas business. It acquired U.S. agriculture
insurance provider, Diversified Crop Insurance Services in 2020, and announced theacquisition of Italian agriculture insurer, ARA 1857 S.p.A. in 2021, promoting its
strategy of expanding agriculture insurance business. Sompo Holdings, Inc. hasannounced that it will spin off and sell the consumer insurance business of Sompo
Seguros S.A. in Brazil in 2023.9
Tokio Marine Holdings, Inc. has pursued growth opportunities in its overseas
business by acquiring businesses in emerging countries, as well as insurancecompanies with strong specialty lines in developed countries. Since 2008, it hascompleted the acquisition of Kiln Ltd. of Lloyd’s in the U.K., Philadelphia
Consolidated Holding Corp. of the U.S., Delphi Financial Group, Inc. of the U.S.,
specialty insurance group, HCC Insurance Holdings, Inc. of the U.S., and Privilege
Underwriters, Inc. of the U.S. At the same time, Tokio Marine Holdings reviewed
its business portfolio and sold reinsurance subsidiary Tokio Millennium Re AG in
2018. In 2020, it announced its goal of establishing a new non-life insurance
subsidiary in Canada, and in 2021, its group companies, Tokio Marine Seguradora
S.A. and Caixa Seguridade in Brazil established a joint venture to underwrite
mortgage and homeowners insurance.10
With a focus on life and non-life insurance, on the other hand, the three groups
are expanding and strengthening an array of various areas based on synergies withinsurance products and promotion of insurtech, including financial services, risk
solutions and services, nursing and senior care, healthcare, and digital. They areenhancing alliances and investments in a variety of overseas companies including
artificial intelligence startups and insurtech companies.

28

The Toa Reinsurance Company, Limited — Japan’s Insurance Market 2023

2. Topics of the
Non-Life
Insurance Market(1) Trends in the Fire Insurance Market
Due to the fact that fire insurance business results in Japan have deteriorated
due to major natural disasters and so on, the reference loss cost rate (advisory purepremium rates) for fire insurance, as calculated by the General Insurance Rating
Organization of Japan (GIROJ), has been raised four times since 2018. Non-life
primary insurance companies have revised their premium rates in response to thereference loss cost rate revisions, and have also consistently phased in tighter terms
and conditions (besides those related to premium rates) such as shortening the
maximum policy period for fire insurance to five years from ten years, increasing
deductibles, and setting limits of liability, in order to improve fire insurance results.

Outline of Announcements by GIROJ

July 201811

Reference Loss Cost Rates for Homeowners’ Comprehensive
Insurance increase by 5.5% on average
Background of revision: Increase in claims related to natural
disasters and water damage from plumbing

December 201912

Reference Loss Cost Rates of Homeowners’ Comprehensive
Insurance increase by an average of 4.9% with discounts for
relatively new dwellings
Background of revision: Increase in claims related to natural
disasters and reflection of risk differentials by building age

July 2021

13

June 202314

Reference Loss Cost Rates of Homeowners’ Comprehensive
Insurance increase by a national average of 10.9 %Key background factors for revision: Increase in natural hazard
risk and reflection of risk trend

Reference Loss Cost Rates of Homeowners’ Comprehensive
Insurance increase by a national average of 13.0% withsubdivision of flood rate
Key background factors for revision: Increase in natural hazard
risk and reflection of risk trend29

3. Trends in Japan’s Non-Life
Insurance Industry(2) Reinsurance Renewals in 2023
Most reinsurance contracts of domestic non-life insurance companies, including
cooperatives and SASTI companies, are renewed at the start of their fiscal year,
generally April 1.
Despite increasing demand for reinsurance capacity due to the impact ofoverseas cat losses and of global inflation, new capital supply into the market was
scarce, affected by rising interest rates. In the course of January renewals, substantial
increases in reinsurance rates and tightening of terms and conditions proceeded,regardless of the respective treaty’s performance.
In the April renewals in Japan, cedants generally secured the reinsurance
capacity they required, since the lower inflation rate compared to other countries aswell as continuous improvements in terms under the primary insurance businessover several years, including original rate increases, were taken into account by thereinsurers.
Regarding Property treaties, in view of unfavorable performance in recent years,
some reinsurers reduced their capacity, and pro-rata treaty terms were further
tightened with increased introduction of reverse franchise and so on.
In Personal Accident business, affected by the spread of Covid-19 infection,
many reinsurers requested full exclusion of infectious diseases. Some cedants
accepted the full exclusion, while others sought to secure infectious disease capacity
by considerably limiting the scope of coverage.

(3) Acceleration of Digital Transformation
Major insurers and others have rapidly accelerated digital transformation using
various digital technologies premised on ‘zero contact.’ The following are examples:• The introduction of various mechanisms and tools that enable remote andpaperless customer interactions including insurance consultations, contract
application and loss reporting, along with insurance premium and claims
settlement.
• The application of AI techniques for customer communications, risk
assessment, claim surveying, disaster prediction and mitigation, as well as forvarious new products and services.

(4) Trends in Regulation by Regulatory Agencies
Given substantial changes in the domestic and overseas environment, over the
past several years the Japanese Financial Services Agency (JFSA) has been developing
its dialogue with financial institutions to enhance their business infrastructure,
secure their financial soundness and encourage them to build sustainable businessmodels based on their customers’ perspectives to achieve the goals of financial
administration.

30

The Toa Reinsurance Company, Limited — Japan’s Insurance Market 2023

Under these circumstances, the JFSA has stated that insurance companies are
required to conduct efficient business operations utilizing digitalization, build
sustainable business models and develop products meeting changes in customer
needs in consideration of medium to long-term business environment changes,
including falling birthrates, aging population, more severe natural disasters and theshrinking auto insurance market. The JFSA has also said that as insurancecompanies are expanding their overseas operations, they must clarify strategies inorder to benefit from overseas economic growth and strengthen their governance on
a global basis. The JFSA encourages insurance companies through dialogue to makesteady progress in relevant efforts.15
The JFSA has been conducting studies to introduce the new economic valuebased solvency regulation in FY2025, in parallel with the introduction of the
Insurance Capital Standard (ICS) by the International Association of Insurance
Supervisors (IAIS). The JFSA published a report titled “Tentative decisions on thefundamental elements of the economic value-based solvency regulation” in June
2022, which shows the tentative decisions and basic directions with regard to
fundamental elements of the new regulation.16
The JFSA has noted that introducing the economic value-based solvency ratio
into the regulatory regime may bring unexpected consequences, such as excessively
risk-averse behavior among insurance companies. Therefore, it is investigating
unintended consequences and international trends while continuing its examination
with emphasis on dialogue with relevant parties for a smooth transition to the new
regime.

(5) ESG and SDGs Initiatives
Japan is among the countries promoting ESG and SDGs. Led by major
insurers, various companies are proceeding with implementation of a broad array ofstudies and initiatives in areas including asset management, personnel systems,
corporate governance, compliance and social contribution, in addition to improving
insurance products and services.
The three largest non-life insurance groups have clearly defined their purposeand established sustainability committees, and have officially incorporated the ESG
framework into the decision-making process for insurance operations andinvestment. They regularly publish sustainability reports. In addition, they are
addressing the greater frequency and intensity of natural disasters as a result ofclimate change by cooperating more closely with other industries, local governments
and other organizations in disaster mitigation initiatives ranging from disasterprevention to repair cost reduction. The three groups are also enhancing insurance
products that facilitate renewable energy development.

31

3. Trends in Japan’s Non-Life
Insurance Industry

References
1. General Insurance Association of Japan, “Fact Book 2021-2022 General
Insurance in Japan”
https://www.sonpo.or.jp/en/publication/ue089i00000000sa-att/fb2022e.pdf
2. General Insurance Association of Japan website,“Overview of Fiscal 2022
Financial Results for the Member Companies” (Japanese)
https://www.sonpo.or.jp/member/gaikyou/kessan/2022.html
3. Tokio Marine Holdings, Inc., “Information of major subsidiaries' businessresults for the fiscal year ended March 31, 2023”
h t t p s : / / w w w. t o k i o m a r i n e h d . c o m / e n / i r / e v e n t / p r e s e n t a t i o n / 2 0 2 2 /k82ffv000000fsse-att/4Q_FY2022_Information_about_major_subsidiaries_
business_results_e.pdf
4. MS&AD Insurance Group Holdings, Inc., “Explanatory Material for BusinessResults for the Year Ended March 31, 2023”
https://www.ms-ad-hd.com/en/news/irnews/auto_20230519576909/pdfFile.
pdf
5. Sompo Holdings, Inc., “Summary of Consolidated Financial Results for the
fiscal year ended March 31, 2023 Supplementary Information”
https://www.sompo-hd.com/-/media/hd/en/files/doc/pdf/e_news2023/e_
20230519_2.pdf?la=en
6. Japan Cooperative Insurance Association Incorporated, “Kyosai in Japan – Fact
Book 2022”
https://www.jcia.or.jp/english/publication/index.html
7. The Small Amount & Short Term Insurance Association of Japan, “Overview of
Fiscal 2021 Financial Results for the Small Amount and Short Term Insurance
Industry” (Japanese)
https://www.shougakutanki.jp/general/info/2022/news20220707.pdf
8. MS&AD Insurance Group Holdings, Inc., “Notice Regarding Completion ofTransverse Insurance Group Acquisition” and other news
https://www.ms-ad-hd.com/en/news.html
9. Sompo Holdings, Inc., “Establishment of a New Subsidiary, a Corporate Split
between it and Another Subsidiary and Divestment from the New Subsidiary
thereafter” and other news
https://www.sompo-hd.com/en/news/topics/2022/
10. Tokio Marine Holdings, Inc., “Progress Regarding Establishment of Insurance
Joint Venture in Brazil” and other news
https://www.tokiomarinehd.com/en/release_topics/release/

32

The Toa Reinsurance Company, Limited — Japan’s Insurance Market 2023

11. The General Insurance Rating Organization of Japan, “Announcement on
Revision of Reference Loss Cost Rates for Fire Insurance”
https://www.giroj.or.jp/english/press_2018/20180718f.pdf
12. The General Insurance Rating Organization of Japan, “Announcement on
Revision of Reference Loss Cost Rates for Fire Insurance”
https://www.giroj.or.jp/english/press_2019/20191203.pdf
13. The General Insurance Rating Organization of Japan, “Announcement on
Revision of Reference Loss Cost Rates of Fire Insurance”
https://www.giroj.or.jp/english/press_2021/20210730.pdf
14. The General Insurance Rating Organization of Japan, “Announcement on
Revision of Reference Loss Cost Rates for Fire Insurance” (Japanese)
https://www.giroj.or.jp/news/2023/20230628_1.html
15. The Financial Services Agency, “The JFSA Strategic Priorities July 2022 - June2023”
https://www.fsa.go.jp/en/news/2022/20220926/the_jfsa_strategic_priorities_
july2022-june2023.pdf
16. The Financial Services Agency, “Tentative decisions on the fundamental
elements of the economic value-based solvency regulation June 30, 2022”
https://www.fsa.go.jp/en/laws_regulations/20220630_solvency.pdf

33

4.
1. Overview ofBusiness Resultsfor Fiscal 2022

Trends in Japan’s Life Insurance
Industry
Life Planning Department
The Toa Reinsurance Company, Limited

During the fiscal year ended March 31, 2023 (fiscal 2022), premium income
and other revenues of Japan’s 42 life insurance companies increased by 18.8% year
on year to 38.0 trillion yen, as a result of factors including an increase in sales ofsingle-premium insurance policies denominated in foreign currencies due to risinginterest rates in the United States and other countries (not including Japan), in
addition to the positive rebound from the negative impact of self-restraint among
sales personnel to prevent the spread of COVID-19 in the previous year.
Despite the increase in revenues, benefits paid increased by 26.6% year on year
to 39.8 trillion yen because of a surge in hospitalization benefit payments due to the
spread of COVID-19. As a result, ordinary profits decreased by a significant 20.9%
from the previous fiscal year to 2.5 trillion yen.
Claims paid related to COVID-19 during fiscal 2022 had a major impact on
the results of Japan’s life insurance companies. For many life insurers, basic profits,*a measure that indicates profits from insurance underwriting as life insurers’ corebusinesses, decreased by more than 10% compared to the previous fiscal year, andbasic profits across the whole industry decreased by around 30%.
* Basic profits are calculated by deducting capital gain/loss and extraordinary gain/loss fromordinary profits.

2. Impact of
COVID-19 on
Life Insurance
Companies

34

COVID-19 has had a major impact on various spheres, including economic andsocial activities. It has also had a major impact on the life insurance industry,
especially after the outbreak of the Omicron strain.
The Japanese government categorized COVID-19 under the new influenza andother diseases category, which is equivalent to Category 2 under the Act on thePrevention of Infectious Diseases and Medical Care for Patients with Infectious
Diseases, and implemented measures such as restrictions that include hospitalizationand isolation for infected people and those who have had close contact with them,along with requests to refrain from going out.
The life insurance industry addressed COVID-19 by taking administrative
measures and social needs into consideration in expanding the scope of benefit
payments. This has included the payment of hospitalization benefits for “deemedhospitalization,” which is defined as hospitalization when there is a shortage of
hospital beds due to an increase in the number of people infected with COVID-19,
and a doctor decides these patients should recuperate at home or in a hotel insteadof a hospital. Benefits are paid for this special measure that is deemed to behospitalization covered by an insurance policy.

The Toa Reinsurance Company, Limited — Japan’s Insurance Market 2023

In Japan, both the number of people who contracted or died from COVID-19
remained low until 2021, so the impact of COVID-19 on the business performanceof life insurance companies was anticipated to be limited. However, the emergenceof the more contagious Omicron strain in 2022 led to an increase in the number of
infected people along with a dramatic increase in benefit payments for deemedhospitalization, which changed the situation significantly. Although the Omicronstrain is highly contagious, it has a low risk of resulting in severe illness. Measures
implemented from September 26, 2022 reduced the scope of benefits for deemedhospitalization to those with a high risk of severe illness, such as people aged 65 andolder. Hospitalization benefit payments subsequently decreased as a result of thisscope reduction. Cumulative hospitalization benefits paid in connection with
COVID-19 as of the end of fiscal 2021 totaled approximately 114.6 billion yen, of
which approximately 84% were benefits paid for deemed hospitalization. However,the cumulative total increased to about 974.3 billion yen as of February 28, 2023,
of which approximately 95% were benefits paid for deemed hospitalization. This860 billion yen increase in benefit payments in a single year had a negative impact
on the performance of life insurance companies.
In fiscal 2023, progress in vaccination rates and the reduced risk of serious
illness informed the Japanese government’s decision to reclassify COVID-19 as a
Category 5 infectious disease, the same category as seasonal influenza. Various
restrictions such as stay-home for infected patients were lifted on May 8, 2023.
Given these changes, life insurance companies decided to terminate special measures
to address COVID-19, including benefit payments for deemed hospitalization, so
fiscal 2023 earnings are likely to improve.
Despite the significant negative impact on business performance, life insurancecompanies fulfilled their responsibility to support social stability with their promptand flexible response to COVID-19, which included benefit payments for deemedhospitalization. At the same time, the pandemic did involve some confusingdevelopments. For example, some insurance companies began selling insurance
products targeting COVID-19 as the pandemic began, but quickly terminated salesof those products because they were unexpectedly unprofitable. Insurancecompanies need to identify and analyze their experiences of COVID-19 and thechallenges brought on by COVID-19, and should be more prepared to prevent
confusion in the event of an unforeseen situation like COVID-19.

35

4. Trends in Japan’s Life Insurance Industry

3. Growth andChallenges in the
Small Amountand Short Term
Insurance Market

36

The small amount and short term insurance market has continued to grow since
its establishment in 2006. In recent years, life insurance companies have alsoestablished such subsidiaries to enter this market. Although this market is expected tocontinue growing, issues have emerged and supervisory authorities have imposed
administrative sanctions on some small amount and short term insurance companies.
The small amount and short term insurance market was created through a 2006
amendment to the Insurance Business Act. Small amount and short term insurancecompanies have to limit themselves to selling insurance in the form of protection
cover (only) for small amounts and a limited term of one year, or two years at the
maximum in the case of non-life insurance. On the other hand, small amount andshort term insurance companies can receive business approval based on a registration
system, which differs from the licensing system for insurance companies. In addition,
the capital required to establish a small amount and short term insurance company ismuch less than that required for an insurance company.
Prior to the establishment of this new business field, it was pointed out thatcooperatives with no legal basis were operating without providing sufficient
information disclosure or with insufficient explanation at the time of contract. The
original aim of this new insurance field was to transform these cooperatives into small
amount and short term insurance companies under the Insurance Business Act fromthe perspective of increasing policyholder protection. However, as hurdles to entry are
relatively low, companies from a range of industries have entered this market since its
creation in 2006.
Moreover, while insurance companies are subject to a licensing system for sales of
their new products, small amount and short term insurance companies are subject
only to a registration system (that requires only a screening process), which enables
flexibility in developing products. These characteristics have led life insurancecompanies, which have conventionally focused on long-term policies, to beginentering the small amount and short term insurance market. In 2019, Sumitomo Life
made Aiaru Syougakutankihoken Corporation a subsidiary, and in 2021 Dai-ichi Lifeestablished Dai-ichi Smart Small-amount and Short-term Insurance Company,
Limited. More recently, in 2022 Nippon Life launched Nissay Plus SSI Company Inc.
as a subsidiary and began developing and offering products. Aiaru Syougakutankihoken
offers insurance for women undergoing fertility treatment, along with products
available regardless of the number of weeks pregnant. Dai-ichi Smart Small-amountand Short-term Insurance has launched a product brand in which all procedures arecompleted digitally, mainly targeting young people. Nissay Plus SSI sells products for
pregnant women with low premiums by specializing in protection for the need forabortion, the need for premature delivery, mastitis, and hospitalization of newborn
children. These products are developed based on the characteristics of small amountand short term insurance. It was difficult to quickly develop and sell such products
within the conventional framework of an insurance company.

The Toa Reinsurance Company, Limited — Japan’s Insurance Market 2023

Various companies, including life insurers, have entered the small amount andshort term insurance market, so this market is expected to continue to grow. At thesame time, however, issues have begun to emerge, including the imposition ofadministrative sanctions by supervisory authorities on a series of small amount andshort term insurance companies that cause business instability. The Financial Services
Agency (FSA) has taken this situation seriously and announced a revised draft ofguidelines for supervising small amount and short term insurance, along with policies
for enhanced monitoring in this insurance market.
Continued imposition of administrative sanctions on small amount and shortterm insurance companies may raise questions about policyholder protection, which
was the original objective in establishing the current small amount and short term
insurance market. The challenge is ensuring soundness while maintaining thecharacteristics of small amount and short term insurance.

4. New System for
Evaluating
the Quality ofLife Insurance
AgencyOperations

The Life Insurance Association of Japan (LIAJ) led the launch of a new system forcertifying agencies with outstanding operations quality, the Agency Operations
Quality Review. Implemented for the first time in February 2023, 42 agencies from allover Japan were recognized under the Certified Agency rating. The background to theintroduction of this new system is the increase in sales of life insurance products via
the agency sales channel.
Traditionally, the primary sales channel for Japan’s life insurance companies was
typically their internal sales representatives, accounting for over 85% of sales in all
channels until 1997. However, insurance companies have been diversifying sales
channels in light of the greater variety of insurance products and changes in consumer
needs. This diversification has resulted in share gains during the past several years foragencies that handle the products of multiple life insurance companies. In a 1997
survey, the agency sales channel accounted for 4.0% of total sales, but this share had
increased to 15.3% in a 2021 survey. Given this situation, life insurance companies
needed to strengthen their agency sales channel even if traditionally they have relied
on internal sales representatives. Life insurers therefore launched group companies that
focus on products for sale through agencies. In 2009, Sumitomo Life establishedsubsidiary Medicare Life, then Dai-ichi Life established subsidiary Neo First Life in2015, Nippon Life established subsidiary Hanasaku Life in 2019, and Asahi Lifeestablished subsidiary Nanairo Life in 2021. These life insurance companies originallyemphasized sales by internal sales representatives, but they are now increasing sales in
the agency channel where demand is growing. They do so by creating subsidiaries thatoffer products for sale through agencies and by segmenting their customer base.

37

4. Trends in Japan’s Life Insurance Industry

With sales volume increasing in the agency channel, ensuring the operations
quality of the agencies to which companies outsource sales administration has become
an issue for the life insurance industry, which handles a large amount of personal
information. To address this issue, in June 2020 the LIAJ led the establishment of an
initiative whereby agencies, agency industry associations, life insurance companies,
and the FSA collaborated in studying a system to evaluate the operations quality ofagencies. The system was officially introduced in fiscal 2022.
The system specifies 200 standards in the four areas of customer service, aftersales service, personal information protection, and governance. Of these, 150
standards are specified as fundamental standards, while the remaining 50 are specified
as advanced standards. To receive the Certified Agency rating, agencies must at least
meet the 150 fundamental standards. The results of reviews are publicly available toconsumers and are shared with life insurance companies. While the FSA is calling foradditional initiatives related to quality review of agency operations, the merits of thissystem include empowering life insurance companies to improve the validity andconsistency of operations through quality reviews of agencies to which they outsource
sales administrations. The system also has advantages for agencies. An initiative being
studied would employ the results of the review system as an alternative to the selfassessment of operations that agencies regularly submit to the life insurance companies
that outsource to them, which would likely reduce workload for agencies. In addition,some life insurance companies are considering higher sales commissions for agencies
with reviews that qualify them for the Certified Agency rating.
Only 54 agencies applied for certification reviews in fiscal 2022, the first year of
the system. However, the LIAJ plans to review more than 60 new agencies in thesecond year of the system. The LIAJ will continue to improve the system andimplement initiatives to raise awareness of the need to improve the quality of agency
operations, thus enhancing agency service quality and increasing the transparency andfairness of insurance product sales throughout the industry. Ultimately, it is expectedthat these measures will contribute to the mitigation of risk and to industry standards.

38

The Toa Reinsurance Company, Limited — Japan’s Insurance Market 2023

Company Overview
ProfileThe Toa Reinsurance Company, Limited (Toa Re), was established in 1940.
With the reinsurance market evolving and clients’ needs expanding, we haverecognized the importance of being able to provide a diverse line of life and non-lifereinsurance products to lead the market as Japan’s primary professional reinsurer.
Toa Re is based in Tokyo with subsidiaries in New Jersey (U.S.A.) and Zürich
(Switzerland). Increasing demand for reinsurance products in Asian countries
prompted us to expand our operations in those regions and establish branch offices
in Singapore, Kuala Lumpur and Hong Kong.
In acknowledgment of Toa Re’s outstanding financial profile, credit rating
agencies, Standard & Poor’s Financial Services LLC, A.M. Best Company, Inc. andJapan Credit Rating Agency, Ltd., have assigned Toa Re ratings of A, A and AA+,
respectively. As of March 31, 2023, the Toa Re Group boasted total assets of
905.7 billion yen. Net premiums written during the fiscal year ended March 31,
2023, totaled 320.8 billion yen.

Mission Statement

ToaRe Mission Statement
Providing Peace of Mind
Toa Re aims to realize its mission byworking with society and applying the principles of fairness
and integrity to all aspects of our business
offering long-term, solid support to our clients by supplying
reinsurance products and services that enable themto maintain stable operations
striving to enhance our corporate value for the interests ofour shareholders through open
and transparent corporate management
respecting the creativity of our group employees
and valuing their contributions
conserving the environment and contributing toa sustainable society

39Company Overview

Consolidated
Financial Highlights

Thousand
U.S. dollars

Million yen
2023

2022

Ordinary income¥349,337¥329,804

Net premiums written

320,822

Ordinary profit (loss)

2021

2020

2019

2023

¥312,101 ¥297,757¥266,625$2,616,168

302,024

287,547

270,252

248,288

2,402,621

3,238

827

2,164

88

(7,390)24,2492,450(1,248)2,745(2,141)(7,150)18,347

Total net assets

196,303

201,307

182,257

167,141

179,944

1,470,104

Total assets

905,749

860,421772,108

711,690694,088

6,783,112

For the year ended March 31

	Net income (loss) attributableto owners of the parent
As of March 31(Rate: ¥133.53 = US$1)

Net Premiums
Written by Class(Consolidated Basis)(Million yen)

Others¥24,833
8.22%
Pet¥10,990
3.64%

Fire¥80,81326.76%

Fiscal 2021
Total

Life
¥93,051
30.81%¥302,024

Marine¥11,409
3.78%

Motor
¥33,328
11.03%

Liability¥47,595
15.76%(Million yen)

Others¥31,799
9.91%
Pet¥9,2332.88%

Fire¥85,00926.50%

Fiscal 2022
Total

Life
¥97,71330.46%
Liability¥55,21417.21%

40¥320,822

Marine¥12,808
3.99%

Motor
¥29,042
9.05%

The Toa Reinsurance Company, Limited — Japan’s Insurance Market 2023

The Toa 21st Century
Reinsurance Co. Ltd.
(Toa Re Europe)

Overseas Network

Toa Re America(Toronto Branch)

Toa Re (Head Office)TaiwanHong Kong
Singapore
Kuala Lumpur
Toa Re America(Agricultural Office)Locations

U.S.A.
The Toa Reinsurance Co.
of America (Toa Re America)

Branches
Singapore

50 Raﬄes Place #26-01, Singapore Land Tower, Singapore 048623
Telephone: +65-6220-0123

Kuala Lumpur

28th Floor, UBN Tower, 10 Jalan P. Ramlee, 50250 Kuala Lumpur, Malaysia
Telephone: +60-3-2732-5911

Hong Kong

Room 801, 8th Floor, Tower 1, Admiralty Centre, 18 Harcourt Road, Hong Kong
Telephone: +852-2865-7581

Subsidiaries

U.S.A.

The Toa Reinsurance Co. of America
177 Madison Avenue, P.O. Box 1930, Morristown, NJ 07962-1930, U.S.A.
Telephone: +1-973-898-9480
The Toa Reinsurance Co. of America (Agricultural Oﬃce)
18301 Von Karman Avenue, Suite 400, Irvine, CA 92612, U.S.A.
Telephone: +1-949-474-1420

CanadaThe Toa Reinsurance Co. of America (Toronto branch)
55 University Avenue, P.O. Box 53, Suite 1700, Toronto, Ontario, M5J 2H7, Canada
Telephone: +1-416-366-5888

Switzerland

The Toa 21st Century Reinsurance Co. Ltd. (Toa Re Europe)
Kreuzplatz 16, 8008 Zürich, Zürich, Schweiz

Representative Oﬃces
U.S.A.

177 Madison Avenue, P.O. Box 1930, Morristown, NJ 07962-1930, U.S.A.
Telephone: +1-973-898-9816

Taiwan4F-2, No. 128, Section 3, Min Sheng East Road, Taipei 10596, Taiwan, R.O.C.
Telephone: +886-2-2715-1015

41

The Toa Reinsurance Company, Limited
6, Kanda-Surugadai 3-chome, Chiyoda-ku, Tokyo 101-8703, Japanh t t p s : / / ww w.t oare.co.jp / english /Providing
Peace of Mind
The Toa Re Group is a global composite reinsurer that provides

peace of mind to its clients by protecting them from a broad rangeof perils such as catastrophic earthquakes and typhoons, casualty
events, crop damage, mortality and health care.

We at The Toa Re Group aim to be chosen by clients from acrossthe world because of our ability to offer a secure long-term
partnership of optimal solutions and strong financial security.

www.toare.co.jp