{"id":13598,"date":"2026-06-01T05:00:00","date_gmt":"2026-06-01T03:00:00","guid":{"rendered":"http:\/\/stocks-future.com\/?guid=a8fdc1a0374c50e9af0a50238caa3d9f"},"modified":"2026-06-01T05:00:00","modified_gmt":"2026-06-01T03:00:00","slug":"bests-market-segment-report-japan-life-insurers-use-of-reinsurance-more-than-doubled-since-2020","status":"publish","type":"post","link":"https:\/\/stocks-future.com\/?p=13598","title":{"rendered":"Best\u2019s Market Segment Report: Japan Life Insurers\u2019 Use of Reinsurance More Than Doubled Since 2020"},"content":{"rendered":"

HONG KONG--(BUSINESS WIRE)--#insurance<\/a>--Japan\u2019s life insurers have increasingly relied on reinsurance in recent years, with the overall cession rate as a percentage of total gross premium written for the segment rising to more than 24% in 2023 and 2024 from just under 10% in 2020, according to a new AM Best <\/b>report.<\/p><\/a><\/a>

\nAccording to the new Best\u2019s Special Report<\/i>, \u201cJapan Life Insurers Increase Use of Reinsurance,\u201d the implementation of an economic value-based solvency regulation framework is driving the increased use of reinsurance. The new solvency regime, which is closely aligned with the Insurance Capital Standard, and known as J-ICS, took effect at the end of March 2026. Under the J-ICS, the new economic value-based solvency ratio will be more sensitive to fluctuations in interest rates, lapses, asset-liability management mismatches and longevity\/mortality risks.<\/p>

\n\u201cJapanese life insurers have been increasingly using asset-intensive reinsurance to transfer investment, longevity and insurance risks from capital-intensive annuity and long-term life insurance blocks to third-party reinsurers ahead of the implementation of J-ICS,\u201d said Cynthia Ang, senior industry research analyst, AM Best. \u201cThe maturity and size of Japan\u2019s life\/annuity insurance market make it an attractive opportunity for reinsurers providing asset-intensive reinsurance solutions.\u201d<\/p>

\nAccording to the report, the heightened volume has led to reinsurance leverage (i.e., reinsurance ceded as a percentage of capital and surplus) rising sharply for some life companies, with the industry aggregate tripling to 14.8% at the end of 2024 from 4.8% in 2020. This trend reflects an increasing reliance on reinsurance to manage risks relative to the company\u2019s own capital base. On an individual company basis, AM Best\u2019s analysis showed that Dai-ichi Frontier Life Insurance Co., Prudential Gibraltar Financial Life Insurance and MetLife Insurance K.K. recorded high ratios of reinsurance leverage in 2024, each exceeding 500%.<\/p>

\nPer market estimates, just 1-2% of total in-force individual life insurance and annuity business in fiscal years 2023-2024 was ceded to reinsurers, but cessions are expected to increase as asset-intensive and offshore reinsurance becomes an increasingly important tool for Japanese life insurers. As usage widens, Japan\u2019s Financial Services Agency is tightening oversight of these transactions due to risks associated with private equity involvement, asset liquidity and complex cross-border collateral.<\/p>

\nTo access the full copy of this commentary, please visit http:\/\/www3.ambest.com\/bestweek\/purchase.asp?record_code=365283<\/a>.<\/p>

\nAM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit <\/b>www.ambest.com<\/b><\/a>.<\/b><\/p>

\nCopyright \u00a9 2026 by A.M. Best Rating Services, Inc. and\/or its affiliates. ALL RIGHTS RESERVED.<\/b><\/p> Contacts<\/b>

\nCynthia Ang<\/b>Senior Industry Research Analyst<\/b>+65 6303 5026<\/b>cynthia.ang@ambest.com<\/a><\/p>

\nCharles Chiang<\/b>Senior Financial Analyst<\/b>+852 5149 4735<\/b>charles.chiang@ambest.com<\/a><\/p>

\nChristopher Sharkey<\/b>Associate Director, Public Relations<\/b>+1 908 882 2310<\/b>christopher.sharkey@ambest.com<\/a><\/p>

\nAl Slavin<\/b>Senior Public Relations Specialist<\/b>+1 908 882 2318<\/b>al.slavin@ambest.com<\/a><\/p>","protected":false},"excerpt":{"rendered":"

HONG KONG–(BUSINESS WIRE)–#insurance–Japan\u2019s life insurers have increasingly relied on reinsurance in recent years, with the overall cession rate as a percentage of total gross premium written for the segment rising to more than 24% in 2023 and 2024…<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-13598","post","type-post","status-publish","format-standard","hentry","category-infos-businesswire"],"_links":{"self":[{"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/posts\/13598","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/stocks-future.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13598"}],"version-history":[{"count":1,"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/posts\/13598\/revisions"}],"predecessor-version":[{"id":13599,"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/posts\/13598\/revisions\/13599"}],"wp:attachment":[{"href":"https:\/\/stocks-future.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13598"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stocks-future.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13598"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stocks-future.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13598"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}