Japan Motor Insurance Market Size (2024 - 2029)

The Japanese motor insurance market is anticipated to experience growth in its market size over the forecast period, driven by an increase in car purchases and the adoption of artificial intelligence by businesses. Despite the significant impact of the COVID-19 pandemic, which led to a decline in automobile sales and affected the motor insurance sector, the market is expected to recover. The digital space has helped the sector maintain stability, although offline dealers and insurers faced the brunt of the lockdowns. The market's expansion is supported by the demand for both mandatory and voluntary car insurance, which offers financial protection against various risks.

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Market Size of Japan Motor Insurance Industry

Japan Motor Insurance Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 54.69 Billion
Market Size (2029) USD 64.67 Billion
CAGR (2024 - 2029) 3.41 %
Market Concentration Medium

Major Players

Japan Motor Insurance Market Major Players

*Disclaimer: Major Players sorted in no particular order

Japan Motor Insurance Market Analysis

The Japan Motor Insurance Market size in terms of direct written premiums value is expected to grow from USD 54.69 billion in 2024 to USD 64.67 billion by 2029, at a CAGR of 3.41% during the forecast period (2024-2029).

The market is expected to grow over the next few years because more people are buying cars, more businesses are using artificial intelligence (AI), and other factors.

Due to the global outbreak of COVID-19, motor insurance in Japan was severely impacted due to the low sale of automobiles. Though the sector can hold itself in the digital space, it remains the most affected as far as the whole motor insurance business is concerned. The worst impact of the pandemic was on the dealers and offline insurers, as vehicles could not be bought or sold due to the lockdown.

In Japan, net premiums for mandatory auto insurance (CALI) were about USD 6.3 billion in the fiscal year 2021. This was the lowest amount in a decade. Net premiums written for voluntary car insurance reached nearly USD 41.1 billion. Motor insurance may provide financial protection against car theft and damage triggered by incidents other than traffic crashes, such as keying, bad weather, or natural disasters, as well as damage caused by colliding with stationary objects.

Japan Motor Insurance Industry Segmentation

A vehicle insurance policy is a legally required document provided by an insurance provider to limit public responsibility and safeguard the public from potential road accidents. Every driver who owns a car is required by law to obtain automobile insurance coverage. This report offers a detailed analysis of the Japanese motor insurance market. It provides insight into the market dynamics, emerging trends in the segments and regional markets, and insights into various product and application types. Also, it studies the key players and the competitive landscape in the Japanese motor insurance market. The Japanese motor insurance market is segmented by type (third-party liability and comprehensive) and distribution channel (agents, brokers, direct, online, and other distribution channels). The report offers market sizes and forecasts in value (USD million) for all the above segments.

By Insurance Coverage
Third-party Liability
Comprehensive
By Distribution Channel
Agents
Brokers
Direct
Online
Other Distribution Channels
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Japan Motor Insurance Market Size Summary

The Japanese motor insurance market is poised for growth over the forecast period, driven by increasing car ownership and the integration of artificial intelligence in business operations. Despite the challenges posed by the COVID-19 pandemic, which significantly impacted vehicle sales and offline insurance channels, the market has shown resilience, particularly in the digital space. The sector is adapting to demographic shifts, such as an aging and shrinking population, by catering to the growing number of households and the demand for affordable, small vehicles. This adaptation is also reflected in the rising interest in shared vehicle use, which may offset the potential decline in vehicle registrations. The market is characterized by a diverse range of insurance products offered through various distribution channels, leveraging big data and digital platforms to enhance accessibility and meet the evolving needs of consumers.

The competitive landscape of the Japanese motor insurance market is dominated by a few key players, with Tokio Marine & Nichido Fire Insurance Co., Ltd., Sompo Japan Nipponkoa Insurance Inc., and Mitsui Sumitomo Insurance Company, Limited, holding significant market shares. These companies are focusing on innovation and personalization of insurance plans to maintain their competitive edge. The adoption of insurtech solutions, including AI and fintech, is transforming operations such as claims processing and customer service, further driving market growth. Collaborative efforts, like those between Tokio Marine & Nichido Fire Insurance Co., Ltd. and JEPLAN Inc., aim to introduce new insurance services that promote sustainability. As the market continues to evolve, these advancements are expected to support the expansion of motor insurance in Japan, aligning with broader industry trends and consumer demands.

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Japan Motor Insurance Market Size - Table of Contents

  1. 1. MARKET DYNAMICS AND INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.4.1 Bargaining Power of Buyers

      2. 1.4.2 Bargaining Power of Suppliers

      3. 1.4.3 Threat of New Entrants

      4. 1.4.4 Threat of Substitutes

      5. 1.4.5 Intensity of Competitive Rivalry

    5. 1.5 Insights on Various Regulatory Trends Shaping Motor Insurance Market

    6. 1.6 Insights on Impact of Technology and Innovation in Operation in the Motor Insurance Market

    7. 1.7 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Insurance Coverage

      1. 2.1.1 Third-party Liability

      2. 2.1.2 Comprehensive

    2. 2.2 By Distribution Channel

      1. 2.2.1 Agents

      2. 2.2.2 Brokers

      3. 2.2.3 Direct

      4. 2.2.4 Online

      5. 2.2.5 Other Distribution Channels

Japan Motor Insurance Market Size FAQs

The Japan Motor Insurance Market size is expected to reach USD 54.69 billion in 2024 and grow at a CAGR of 3.41% to reach USD 64.67 billion by 2029.

In 2024, the Japan Motor Insurance Market size is expected to reach USD 54.69 billion.

Japanese Motor Insurance Market Report Snapshots

Japanese Motor Insurance Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)