LIFE INSURANCE BUSINESS IN JAPAN 2016-2017 - The Life Insurance Association of Japan
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LIFE INSURANCE BUSINESS
IN JAPAN
2016-2017
The Life Insurance Association of JapanLife Insurance Business in Japan at a Glance
Number of Companies Number of Life Insurance Solicitors(a)
41 Companies －Tied sales agents: 232,006
－Domestic company: 25 －Sales representatives - Corporate agencies:
at agencies: 35,306 offices
－Subsidiary of foreign company: 13 - Individual agencies:
－Branch of foreign company: 3 1,003,507 55,805 offices
(As of December 2017)
Number of Policies in Force
Life Insurance Ownership Rate (Individual Insurance)(a)
per Household(b) 160 million
89.2%
－Number of policies owned by household: 3.8
－Death benefit amount of coverage per
household: 24.2 million yen
－Annual premium payment per household:
385 thousand yen
(Figures include Postal Insurance, Japan Agricultural Cooperatives
etc.)
Premium Income
33,4591 billion yen(a)
Insurance Benefits Paid
Ordinary Profit(a) 29,140 billion yen (fiscal 2016)(a)
2,662 billion yen
Total Assets(a)
367,167 billion yen
Breakdown of Securities
Sources: (a) Life Insurance Association of Japan "Summary of Life Insurance Business" (b) Japan Institute of Life Insurance "FY2016
Survey on Life Insurance in Japan"Table of Contents
Part 1 Life Insurance in Numbers ··································· 1
Part 2 The Life Insurance Association of Japan (LIAJ) ·
·················································································· 37
1. The LIAJ’s Topics for Fiscal 2016 ····························· 38
1. Promotion of Friendly Life Insurance Services for the Elderly ······ 38
2. Promotion of Insurance Education ······································ 39
2. The LIAJ's Key Activities ········································ 42
1. Activities to Provide Information and Promote Understanding on
the Life Insurance Business ············································· 42
2. Consultation Services, Complaint Processing and Dispute
Resolution Operations regarding Life Insurance Business ········· 43
3. Activities regarding Systems and Measures to Ensure
Appropriate Operation of the Life Insurance Business ·············· 45
4. Activities regarding Education and Training for the Staff of
Member Companies ······················································· 51
5. Activities regarding Making Requests and Proposals to relevant
Authorities, Agencies and Organizations ······························ 52
6. Activities to Fulfill Social Responsibilities····························· 54
3. The LIAJ’s Organization Profile ································ 56
Note: In this document, the LIAJ's activities are categorized in accordance with its Business
Plan for Fiscal Year 2016. This “Life Insurance Business in Japan” does not
specifically introduce (V) Research and study activities regarding the theory and
practice of life insurance and (VIII) Other activities considered necessary to achieve
the goals of the LIAJ.Part 1
Life Insurance in Numbers
(Reprint of Life Insurance Fact Book 2017)
1Introduction
The Life Insurance Fact Book summarizes key performance indicators of life
insurance companies operating in Japan. We hope that this report will provide a
better understanding of the life insurance business in Japan.
Please note that the data of Japan Post Insurance has been included in the
figures since fiscal 2008; therefore, some figures show the data excluding Japan
Post Insurance in order to maintain continuity with the previous data before its
inclusion. The data of Japan Post Insurance is not included in figures for fiscal
2007 and 2008 for the purpose of counting years (e.g. “for the Xth successive
years” or “for the first time in X years”).
In addition to this report, the LIAJ provides detailed statistical data of the life
insurance market in Japan; please refer to such data as necessary.
*The LIAJ is not responsible for any losses that may occur through the use of the
information contained in this CD-ROM.
2Contents
Highlights of Business Results ································································4
I Underwriting Results ········································································6
1. Insurance Products for Individual ·····················································6
(1) Individual Insurance ·································································6
(2) Individual Annuity Insurance ···················································· 10
(3) Annualized Premium ······························································ 12
(4) Hospitalization and Surgery Protection ······································ 13
(5) Statistical Data by Gender, Age and Prefecture ··························· 14
2. Insurance Products for Groups ······················································ 19
(1) Group Insurance ··································································· 19
(2) Group Annuity Insurance ························································ 21
II Profit and Loss ············································································· 23
1. Insurance Related Profit and Loss ················································· 23
(1) Premium Income ··································································· 23
(2) Insurance Benefits Paid ·························································· 24
2. Investment Income and Expenses ················································· 26
3. Operating Expenses ···································································· 28
4. Ordinary Profits and Basic Profits ·················································· 28
III Investment Results ········································································ 29
1. Total Assets ··············································································· 29
2. Securities ·················································································· 30
3. Loans ······················································································· 31
4. Tangible Fixed Assets (Real Estate) ··············································· 33
IV Liabilities and Net Assets ································································ 33
Reference ························································································· 35
Distribution Channels and Sales Force ················································· 35
Member Companies ········································································· 36
3Highlights of Business Results
- The Trend of Individual Insurance Policies -
As of the end of fiscal 2016, the amount of (trillion yen)
policies in force (the amount of coverage for Amount of new
major protections such as death protection) 40 policies (fiscal
for individual insurance was 862,905 billion 35.9 2015)
yen (100.5% y/y) and increased from the 35 Amount of new
31.8 policies (fiscal
previous year for the second successive year.
The number of policies in force as of the end 2016)
30
of fiscal 2016 was 167.72 million, increasing
for the ninth successive year. Though the 25
Note: "Whole Life Insurance
amount of new policies (including converted (Total)" includes whole life
insurance, whole life with
contracts) decreased from the previous year term rider and whole life
20 19.2
to 68,478 billion yen (98.8% y/y),decrease in with variable accumulation
16.6
lapses and surrenders owing to insurers’ rate.
efforts over the past years to maintain existing 15
policies lead to the increase in policies in force.
As to the type of new policies for individual 10
policies in terms of amount (excluding
4.9 5.1
converted contracts), suspension of savings- 5
type products due to the lower domestic 2.4
1.5
interest rates and consequent lower assumed
0
interest rates for single-premium products
resulted in the decreased sale particularly for Whole Life Term Endowment Variable
Insurance Insurance Insurance Insurance
whole life insurance from the previous year.
(Total)
Meanwhile, the sales of term insurance, which
is largely protection-based, increased from the
previous year to 35,977 billion yen (112.8%
y/y). (See: pages 6 to 9) y/y)
(trillion yen) Amount of Policies in Force (million)
As to the annualized premium (the amount 1,000 180
Number of Policies in Force
百万
of premium income which a life insurer would 900 160
receive in one year, under the assumption that
premium is equally divided and paid 800 140
throughout the entire contract period) of 700
120
policies in force, it amounted to 27.4 trillion 600
yen (including 6.2 trillion yen for "third-sector") 100
500
at the end of fiscal 2016, increasing steadily 80
861 865 857 858 862
since fiscal 2006 when the record started. 400
With small amount insurance products of 60
300
policies increasing such as medical insurance, 200 40
annualized premium is referred to as an
20
additional indicator that supports the amount 100
of policies.(See: page 12) 0 0
2012 2013 2014 2015 2016
(trillion yen) Note: Including individual annuity insurance
30.0 Annualized Premium of Policies in Force 27.4
25.2 26.1
"Third-Sector" 23.8 24.4
25.0 21.7 22.7
20.4 21.3
19.4 19.8
20.0
15.0
10.0
5.0
4.4 4.5 4.7 4.8 5.0 5.2 5.3 5.5 5.7 5.9 6.2
0.0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Note: The amount of annualized premium of "third-sector" includes the amount of premium to be allocated
for paying medical coverage (e.g. benefits for hospitalization/surgery), living benefits (e.g. benefits for
specified disease/long-term care), and premium waiver benefits (e.g. benefits due to specified disease or
long-term care, but excluding disability).
4- Major Business Results -
○The amount1 and the ratio2 of lapses and surrenders for individual insurance has
been decreasing. (See: pages 6 and 8)
6.6% Ratio of lapses
6.2% 6.1% and surrenders
5.9%
5.6%
Amount of
56,927 billion yen 53,676 billion yen 52,471 billion yen lapses and
50,296 billion yen
surrenders
48,415 billion yen
2012 2013 2014 2015 2016
○The amount of new policies for individual annuity insurance increased significantly.
(See: page 10)
11,064 billion
yen
8,563 billion yen 8,632 billion yen 8,326 billion yen
8,003 billion yen
2012 2013 2014 2015 2016
○Total assets was the highest ever. (See: page 29)
375,505 billion
367,255 billion yen 367,167 billion yen yen
350,582 billion yen
344,998 billion yen
2012 2013 2014 2015 2016
1 Amount of lapses and surrenders = ( lapses + surrenders + total of decrease in amount of a policy) -
(reinstatements + total of increase in amount of a policy)
2 Ratio of lapses and surrenders = ( amount of lapses and surrenders / amount of policies in force at the beginning of
fiscal year )* 100%
5I Underwriting Results
1 Insurance Products for Individual3
(1) Individual Insurance
I. New Policies
The number of new policies for individual insurance (including converted contracts) was 19.3
million (97.1% y/y), and the new policies amount4 (reflecting the net increase arising from
the conversion) was 68,478billion yen (98.8% y/y). [Figure 1]
Both the number and the amount of new policies decreased from the previous year in fiscal
2016 notwithstanding the increase trend over the several years supported by increased sales
of medical insurance and whole life insurance. This turn-around reflects the negative
developments such as suspended sales of single premium payment products due to the
reduction in the standard assumed interest rate for such products following the further
downward shift of the yield in the domestic investment market.
By type of new policies for individual insurance (excluding converted contracts), medical
insurance ranked top in number (3.55 million, 22.8% of the total), followed by whole life
insurance (3.51 million, 22.5%), term insurance (2.16 million, 13.9%), cancer insurance (208
million, 13.4%), and endowment insurance (1.38 million, 8.9%), with the ranks switched
between term insurance and cancer insurance from the previous year. [Figure 2]
Of the total amount of new policies for individual insurance (excluding converted contracts),
term insurance ranked top (35,977 billion yen, 48.9% of the total), followed by whole life
insurance (14,377 billion yen, 19.5%), endowment insurance (5,194 billion yen, 7.1%),
Juvenile insurance(1,781billion, 2.4%), variable insurance (1,558 billion, 2.1%), with Juvenile
insurance moving up in the ranking. [Figure 3]
II. Policies in Force
The number of policies in force for individual insurance was 167.72 million (104.8% y/y), and
the amount of policies in force was 862,905 billion yen (100.5% y/y). [Figure 1]
The number of policies in force increased for the ninth successive year. Despite the fact that
the insured amount of policies in force had been decreasing due to the current trend of
increasing medical protection while reducing death protection, it increased for the second
successive year.
As for the number of policies in force for individual insurance, whole life insurance ranked top
(36.59 million, 21.8% of the total), followed by medical insurance (35.29 million, 21.0%),
cancer insurance (23.90 million, 14.3%), term insurance (21.19 million, 12.6%), endowment
insurance (13.89 million, 8.3%) and whole life insurance with term rider (9.85 million, 5.9%).
[Figure 4]
Of the total amount of policies in force for individual insurance, term insurance ranked top
(268,940 billion yen, 31.2% of the total), followed by whole life insurance(176,659 billion yen,
20.5%), whole life insurance with term rider (120,368 billion yen, 13.9%), whole life insurance
with variable accumulation rate (69,593 billion yen, 8.1%) and endowment insurance (45,407
billion yen, 5.3%). [Figure 5]
III. Lapses and Surrenders
The amount5 and the ratio6 of lapses and surrenders for individual insurance were 48,415
billion yen (96.3% y/y) and 5.6% (down by 0.3 points from the previous year). [Figure 6]
The amount and the ratio of lapses and surrenders decreased for the fifteenth successive
year and eighth successive year, respectively.
3 The business result of individual insurance and individual annuity insurance includes those policies under which
policyholder is a corporate body and the insured is a member of the management (so-called "key person insurance").
4 The amount of major protections such as a death protection.
5 Amount of lapses and surrenders = ( lapses + surrenders + total of decrease in amount of a policy) -
(reinstatements + total of increase in amount of a policy)
6 Ratio of lapses and surrenders = ( amount of lapses and surrenders / amount of policies in force at the beginning of
fiscal year )* 100%
6Figure 1: New Policies and Policies in Force for Individual Insurance
（Number: million, Amount: billion yen Y/Y: %）
New Policies Policies in Force
Number Amount Number Amount
Y/Y Y/Y Y/Y Y/Y
2012 19.67 121.3 71,345 108.8 136.01 106.9 861,651 99.6
2013 18.99 96.5 66,836 93.7 143.88 105.8 857,540 99.5
2014 19.39 102.1 67,431 100.9 151.73 105.5 857,432 100.0
2015 19.88 102.5 69,333 102.8 160.11 105.5 858,604 100.1
2016 19.30 97.1 68,478 98.8 167.72 104.8 862,905 100.5
Below are figures excluding Japan Post Insurance
2012 17.47 124.0 64,829 109.2 126.14 105.8 833,170 98.9
2013 16.76 95.9 60,276 93.0 132.21 104.8 823,805 98.9
2014 17.01 101.5 60,428 100.3 138.19 104.5 818,273 99.3
2015 17.48 102.7 62,165 102.9 144.76 104.8 814,197 99.5
2016 16.86 96.4 60,631 97.5 150.57 104.0 812,807 99.8
Note: The number includes converted contracts, and amount reflects the net increase arising from the conversion.
Figure 2: Changes in Individual Insurance by Type (Number of New Policies)
（million）
Others
18.00
15.85 Jevenile Insurance
16.00 15.59
14.89 15.05
14.40 1.13 Cancer Insurance
0.71 0.73 1.54
14.00 0.62 0.84
0.64 1.01 0.72
0.56 Medical Life Insurance
1.42 1.39 2.24
12.00 1.77 2.08
Endowment Insurance
10.00 3.64 Variable Insurance
3.83 3.81 3.62
3.55
8.00 Term Insurance
1.74 1.46
1.66 1.34 1.38
0.06 Whole Life with Variable
6.00 0.09 0.17 0.39 0.23
2.14 Accumulation Rate
2.22 2.24 2.12 2.16 Whole Life with Term
0.34
4.00 0.28 0.39 0.31 0.31 0.25 Rider
0.23 0.15 0.14 0.11 Whole Life Insurance
2.00 3.87 3.47 3.57 3.51
3.37
Note: Excluding
0.00 converted contracts
2012 2013 2014 2015 2016
7Figure 3: Changes in Individual Insurance by Type (Amount of New Policies)
（trillion yen）
Others
80
73.2 73.2 73.6 Jevenile Insurance
69.9
70 67.7 Cancer Insurance
9.9 12.5 12.3
0.01 10.6
1.3 10.4 0.02 0.02 0.02 Medical Insurance
60 5.6 0.2 0.01 2.0 1.7
1.2 2.2 0.1 5.1 0.1
0.4 0.2 0.2 4.9
5.3 4.6 1.5 Endowment Insurance
1.0 2.4
50 0.6
Variable Insurance
40 31.4 Term Insurance
29.0 31.0 31.8 35.9
30 Whole Life with Variable
Accumulation Rate
2.6 Whole Life with Term Rider
20 3.9 3.6 2.9 2.4
2.4 1.6 1.2 1.3
0.8 Whole Life Insurance
10 17.4 14.5 15.2 15.5 14.3
0
2012 2013 2014 2015 2016
Figure 4: Changes in Individual Insurance by Type (Number of Policies in Force)
（million） Others
180.00
167.72 Jevenile Insurance
160.11
160.00 10.82
151.73 9.54
143.88 7.54 Cancer Insurance
8.63 7.15
140.00 136.01 8.07 6.65 23.90 Medical Insurance
8.09 6.03 23.14
5.88 21.97
120.00 21.16 Endowment Insurance
20.54
35.29
100.00 33.70 Variable Insurance
31.94
29.98
27.78
80.00 13.89 Term Insurance
13.41
12.84 2.16
12.38 1.98
11.60 1.63 Whole Life with Variable
1.51 21.19
60.00 1.47 18.44 19.89
16.52 Accumulation Rate
14.32
6.75 6.45 Whole Life with Term
7.51 7.07
40.00 7.58 10.41 9.85 Rider
11.66 10.99
12.29 While Life Insurance
20.00 36.59
29.01 31.51 34.10
26.42
0.00
2012 2013 2014 2015 2016
8Figure 5: Changes in Individual Insurance by Type (Amount of Policies in Force)
（trillion yen）
1,000
861 857 857 858 862
Others
800 145 13 139 141 143 145
13 14 15 16
Jevenile Insurance
2 2 2 2 1
38 40 42 43 45
10 4 4 4 4 Cancer Insurance
10 11 12 14 3
600
204 Medical Insurance
220 237 252 268
Endowment Insurance
400 112 104 Variable Insurance
91 80 69
Term Insurance
194 174 154 136 120
200 Whole Life with Variable
Accumulation Rate
176 Whole Life with Term
135 146 157 167
Rider
0
2012 2013 2014 2015 2016
Figure 6: Changes in Amount and Ratio of Lapses and Surrenders of Individual
Insurance
（billion yen） （％）
6.6
100,000 6.2 6.1 7.0
5.9
5.6
6.0
80,000
5.0
60,000 4.0
40,000 3.0
56,927 53,676 52,471 2.0
50,296 48,415
20,000
1.0
0 0.0
2012 2013 2014 2015 2016
9(2) Individual Annuity Insurance
IV. New Policies
The number and the amount 7 of new policies for individual annuity insurance were 2.08
million (135.7% y/y) (including the net increase arising from the conversion) and 11.644 trillion
yen (132..9% y/y) (reflecting the net increase arising from the conversion), increasing both in
number and in amount from the previous year. [Figure 7]
Of all the new policies for individual annuity insurance (excluding converted contracts), the
number of fixed individual annuity insurance was 1.93 million (93.3% of the total) and that of
variable individual annuity insurance was 0.13 million (6.7%) in fiscal 2015,with fixed
individual annuity insurance increasing for the first time in four years[Figure 8]
Of all the new policies for individual annuity insurance (excluding converted contracts), the
amount of fixed individual annuity insurance was 10,336 billion yen (93.2% of the total) and
that of variable individual annuity insurance was 757 billion yen (6.8%). [Figure 9]
V. Policies in Force
The number and the amount8 of policies in force for individual annuity insurance as of fiscal
2016 were 21.75 million (104.8% y/y) and 107,872 billion yen (104.1% y/y). [Figure 7]
The number of policies in force turned upward in fiscal 2003 due to the lifting of restrictions
on sales of bancassurance. It increased from the previous year for the fourteenth successive
year and has been setting new highs every year from fiscal 2006 to 2015; however, the
amount decreased from the previous year for the first time in 13 years in fiscal 2016.
As for the number of policies in force for individual annuity insurance, that of fixed individual
annuity insurance was 19.52 million (89.7% of the total) and that of variable individual annuity
insurance was 2.23 million (10.3%). [Figure 10]
Of all the amount of policies in force for individual annuity insurance, fixed individual annuity
insurance accounted for 95,175 billion yen (88.2% of the total) and variable individual annuity
insurance for 12,697 billion yen (11.8%). [Figure 11]
VI. Lapses and Surrenders
The amount9 and the ratio10 of lapses and surrenders for individual insurance were 2,593
billion yen (71.3% y/y) and 3.0% (down by 1.1 points from the previous year). [Figure 12]
Figure 7: New Policies in Force for Individual Annuity Insurance
（Number:million, Amount:billion yen, Y/Y:％）
New Policies Policies in Force
Number Amount Number Amount
Y/Y Y/Y Y/Y Y/Y
2012 1.65 103.9 8,563 108.4 20.42 103.4 103,518 104.7
2013 1.50 91.4 8,003 93.5 20.47 100.2 103,788 100.3
2014 1.59 106.0 8,632 107.9 20.50 100.1 104,131 100.3
2015 1.53 96.3 8,326 96.5 20.75 101.3 103,595 99.5
2016 2.08 135.7 11,064 132.9 21.75 104.8 107,872 104.1
Below are figures excluding Japan Post Insurance.
2012 1.46 106.6 7,929 110.5 19.37 102.7 100,323 104.4
2013 1.35 92.6 7,479 94.3 19.28 99.6 100,344 100.0
2014 1.46 107.5 8,138 108.8 19.18 99.5 100,515 100.2
2015 1.47 101.0 8,106 99.6 19.39 101.1 100,118 99.6
2016 2.07 140.8 11,024 136.0 20.39 105.2 104,741 104.6
Note: The number includes converted contracts, and the amount reflects the net increase arising from conversion.
7 The amount of the annuity reserve (the total annuity amount that will be paid in the future, after being converted to the
value at the time of start of annuity payment).
8 The amount is the annuity reserve (the total annuity amount that will be paid in the future, after converted to the value
at the time of the start of annuity payment) as to the contracts before the start of annuity payment, and the amount of
policy reserves (reserves accumulated for future payments) as to the contracts after the start of annuity payment.
9 Amount of lapses and surrenders = ( lapses + surrenders + total of decrease in amount of a policy) -
(reinstatements + total of increase in amount of a policy). Note that this includes only the contracts before the start of
annuity payment, and the contracts after the start of annuity payment are excluded.
10 Ratio of lapses and surrenders = ( amount of lapses and surrenders / amount of policies in force at the beginning of
fiscal year (only includes the contracts before the start of annuity payment) )* 100%
10Figure 8: Changes in Individual Annuity Insurance by Type (Number of New Policies)
（million）
2.4
2.07
2.1
0.13
1.8 1.6
1.47 1.56 1.52
1.5 0.09
0.16 0.26 0.22
1.2
0.9 1.93
1.5
0.6 1.3 1.3 1.29
0.3
0
2012 2013 2014 2015 2016
Fixed Annuity Variable Annuity
Figure 9: Changes in Individual Annuity Insurance by Type
(Amount of New Policies)
（billion yen）
12,000 11,094
757
10,000 8,655
8,550 8,354
7,973
8,000 526 1,653
919 1,390
6,000
10,336
4,000 8,023
7,054 7,001 6,964
2,000
0
2012 2013 2014 2015 2016
Fixed Annuity Variable Annuity Note: Excluding converted contracts
Figure 10: Changes in Individual Annuity Insurance by Type (Number of Policies
in Force)
（million）
25.00
21.75
20.42 20.47 20.50 20.75
20.00 2.23
2.97 2.64 2.42
3.33
15.00
10.00 19.52
17.09 17.50 17.85 18.33
5.00
0.00
2012 2013 2014 2015 2016
Note: Excluding converted contracts
Fixed Annuity Variable Annuity
11Figure 11: Changes in Individual Annuity Insurance by Type (Amount of Policies
in Force)
(billion yen )
120,000 107,872
103,518 103,788 104,131 103,595
100,000 12,697
19,111 17,273 16,078 13,919
80,000
60,000
88,052 89,675 95,175
40,000 84,406 86,514
20,000
0
2012 2013 2014 2015 2016
Fixed Annuity Variable Annuity
Figure 12: Changes in Amount and Ratio of Lapses and Surrenders of Individual Annuity
Insurance
（％）
（billion yen）
6,000 5.4 5.4 6.0
5,000 5.0
4.1
3.7
4,000 4.0
3.0
3,000 3.0
4,939 4,897
2,000 2.0
3,268 3,636
2,593
1,000 1.0
0 0.0
2012 2013 2014 2015 2016
(3) Annualized Premium
The total amount of annualized premium on new policies for individual insurance was 2,415
billion yen (100.5% y/y), while that for individual annuity insurance was 889 billion yen (97.3%
y/y) in fiscal 2016. The amount of annualized premium for individual insurance increased for
the third successive year while that for individual annuity insurance decreased for the first
time in the three years.[Figure 13]
The amount of annualized premium on policies in force for individual insurance was 20,777
billion yen (105.6% y/y), while that for individual annuity insurance was 6,705 billion yen
(102.9% y/y). The amount of annualized premium on policies in force for individual insurance
has been increasing for eight years, and that for individual annuity insurance increased for
the first time in four years.
With regard to third-sector products, the amount of new policies was 673 billion yen (109.3%
y/y) and that of policies in force was 6,228 billion yen (104.9% y/y). The amount of new
policies increased for the fourth successive year and that of policies in force has been
increasing consistently.
12What is annualized premium?
Given the increase in the sales of medical, cancer and long-term care insurance policies and individual annuity
plans, which have little or no death protection, it is sometimes inappropriate to judge the business result solely by
focusing on the amount of policies (i.e. total amount of death protection as to individual insurance). Annualized
premium is increasingly used as the complementary indicator.
There are various options for paying premiums for customers, including monthly payment, annual payment and
lump-sum payment at the time of concluding the contract. Also, payments can be made either throughout the
entire contract period or during a certain period. Annualized premium is calculated by adjusting these differences
in payment options under the assumption that premium is equally divided and paid throughout the entire contract
period, and indicates the average amount of premium income which a life insurer would receive in one year.
Example: Case of lump-sum premium payment (contract period: 5 years, total premium: 1 million yen)
Premium Income: 1 million yen
Annualized Premium: 200 thousand yen (1 million yen divided by 5 years)
Figure 13: Changes in Annualized Premium
New Policies Policies in Force
（billion yen） （billion yen）
Individual Individual Individual Individual
Total Total "Third
Insurance Annuity "Third-Sector" Insurance Annuity
Sector"
2012 2,125 817 2,942 510 16,884 6,968 23,853 5,384
2013 2,052 766 2,819 532 17,694 6,752 24,447 5,538
2014 2,222 883 3,106 560 18,645 6,577 25,222 5,704
2015 2,404 914 3,318 616 19,676 6,518 26,195 5,937
2016 2,415 889 3,304 673 20,777 6,705 27,483 6,228
Below are figures excluding Japan Post Insurance Below are figures excluding Japan Post Insurance
2012 1,693 594 2,288 469 15,029 6,301 21,330 5,197
2013 1,613 586 2,200 482 15,501 6,091 21,593 5,310
2014 1,764 721 2,486 518 16,118 5,903 22,022 5,447
2015 1,919 809 2,728 566 16,813 5,862 22,675 5,643
2016 1,907 869 2,777 617 17,569 6,136 23,705 5,894
Note: The amount of annualized premium of "third-sector" includes the amount of premium to be allocated for paying medical coverage (e.g. benefits
for hospitalization/surgery), living benefits (e.g. benefits for specified disease/long-term care), and premium waiver benefits (e.g. benefits due to
specified disease or long-term care, but excluding disability).
Figure 14: Change in Annualized Premium of Policies in Force
(Billion Yen)
30,000 27,483
25,222 26,195
23,853 24,447
25,000
20,000
15,000
10,000
5,000
5,384 5,538 5,704 5,937 6,228
0
2012 2013 2014 2015 2016
Annualized Premiumo f Policies Holders Third-Sector
(4) Hospitalization and Surgery Protection
Of all the products for individual, the number of policies in force of medical insurance which
provides protection against hospitalization/surgery as a base policy was 35.29 million
(104.7% y/y), and that of cancer insurance was 23.90 million (103.3% y/y), increasing
continuously. [Figure 15]
13Figure 15: Changes in Medical and Cancer Insurance (Number of Policies in Force)
（million）
40.00
35.29
33.70
35.00 31.94
29.98
30.00 27.78
23.14 23.90
25.00 21.16 21.97
20.54
20.00
15.00
10.00
5.00
0.00
2012 2013 2014 2015 2016
Medical Insurance Cancer Insurance
To provide medical protection, there are also other types of insurance policies which are
served with medical riders. With respect to insurance policies with hospitalization and surgery
coverage (the sum of riders and stand-alone medical insurance policies among individual life
insurance and individual annuity insurance), the number of policies with accidental
hospitalization riders in force was 76.75 million (102.1% y/y), those with sickness
hospitalization riders in force was 77.33 million (102.4% y/y), and those with surgical benefit
riders in force was 102.74 million (103.0% y/y). [Figure 16]
Figure 16: Changes in Medical Insurance for Hospitalization and Surgery
(Number of Policies in Force)
（million） 99.74 102.74
100.00 96.73
94.52
92.05
90.00
80.00 76.75 77.33
75.15 75.53
72.31 72.21 73.57 73.71
70.81 70.41
70.00
60.00
50.00
2012 2013 2014 2015 2016
Hospitalization due to unforseen accidents Hospitalization due to sickness Surgery
Note: Figures are the total of the numbers of protection under individual insurance policies and individual annuity
contracts in force, both as a base policy and as a rider. Products with more than one protections are counted in
each protection.
(5) Statistical Data by Gender, Age and Prefecture 11
VII. By Gender
Comparing the number of new policies for individual insurance (excluding converted
contracts) by gender of the insured, the ratio of females has been increasing recently to
exceed that of males. In fiscal 2016, the ratio of males was slightly higher than that of the
previous year. The ratio of females was 50.2%, slightly exceeding that of men at 49.8%,
though the gap was narrowed. [Figure 17]
Comparing the number of new policies for individual insurance between each type of
insurance product by gender of the insured in fiscal 2016, "others" including cancer insurance
and medical insurance ranked top (more than 50% of the total) for male and female, followed
by whole life insurance, term insurance and endowment insurance. [Figure 18]
11 Statistical data by gender, age and prefecture is based on the classification of the insured.
14Comparing the number of new policies for individual annuity insurance by gender of the
insured, the ratio of females has been higher than that of males so far, although the ratio of
males has started to rise recently. In fiscal 2016, the ratios of males and females were 45.7%
and 54.3%, respectively. [Figure 19]
Figure 17: Changes in Composition Ratio of Individual Insurance by Gender
(Number of New Policies)
2012 49.5 50.5
2013 49.6 50.4
2014 50.1 49.9
2015 49.6 50.4
2016 49.8 50.2
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Male Female
Figure 18: Composition Ratio of Individual Insurance by Type in FY2016
(Number of New Policies by Gender)
Male 22.1 17.8 8.5 51.6
Female 28.0 10.0 9.3 52.7
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Whole Life Insurance Term Insurance Endowment Insurance Others
Figure 19: Changes in Composition Ratio of Individual Annuity by Gender
(Number of New Policies)
2012 43.1 56.9
2013 43.4 56.6
2014 43.3 56.7
2015 44.9 55.1
2016 45.7 54.3
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Male Female
15VIII. By Age
Comparing the number of new policies for individual insurance (excluding converted
contracts) by age group of the insured, the ratio of those in their 40s has been on a rising
trend, and the ratio of those in their 20s and 30s on a decreasing trend. In fiscal 2016, the
ratio of those in their 20s to 40s has increased, resulting in a smaller ratio of those aged 50s
and over 50s. [Figure 20]
Also, comparing the number of new policies for individual insurance between each type of
insurance product by age group of the insured, the ratio of "others" (including medical
insurance, juvenile insurance, etc.) was the highest in those under 20, reaching 71.5%.
Among those in their 20s to 60s, the ratio of "others" ranked top at approximately 50%,
followed by whole life insurance. [Figure 21]
Comparing the number of new policies for individual annuity insurance by age group of the
insured, the ratio of those under 40s increased in fiscal 2016. [Figure 22]
Figure 20: Changes in Composition Ratio of Individual Insurance by Age
(Number of New Policies)
2012 14.8 17.4 21.2 16.8 12.9 16.9
2013 15.5 17.5 20.2 16.7 12.4 17.6
2014 17.1 16.6 19.3 16.8 12.4 17.8
2015 15.7 16.4 19.1 17.2 12.5 19.2
2016 14.9 17.4 19.6 17.7 12.3 18.0
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Under 20 20s 30s 40s 50s 60 or older
Figure 21: Composition Ratio of Individual Insurance by Type in FY2016
(Number of New Policies by Age)
Under 20s 9.3 9.9 9.3 71.5
20s 21.4 19.1 9.4 50.0
30s 23.1 19.8 8.7 48.4
40s 22.5 17.2 10.5 49.9
50s 28.4 11.4 9.1 51.1
60s or
44.0 4.1 6.7 45.2
older
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Whole Life(including Whole Life with term rider) Term Insurance Endowment Insurance Others
Figure 22: Changes in Composition Ratio of Individual Annuity by Age (Number of
New Policies)
2012 1.6 17.4 20.6 18.2 15.5 26.8
2013 3.4 17.0 19.1 18.5 16.7 25.2
2014 4.7 14.4 16.9 18.5 17.8 27.7
2015 5.6 16.7 18.9 19.6 16.1 23.1
2016 6.9 20.6 19.9 20.4 15.3 16.8
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Under 20 20s 30s 40s 50s 60s or older
16IX. By Prefecture
Regarding the details of individual insurance by each prefecture, Figure 23 provides the
details of new policies (excluding converted contracts), and Figure 24 provides details of
policies in force.
Figu r e 2 3 : Ne w Po lic ie s fo r In dividu al In su r an c e by Pr e fe c t u r e (FY 2 0 1 6 )
Individual Insurance Amount per Policies per Amount per
Population Household
Prefecture Numver Amount policy household household
ten thousand （billion yen) （thousand yen） （Number） （thousand yen）（ten thousand）（ten thousand）
Hokkaido 67 2,503 3,709 0.24 912 534 274
Aomori 15 587 3,897 0.25 1,000 131 58
Iwate 14 610 4,178 0.28 1,175 127 51
Miyagi 30 1,353 4,484 0.31 1,396 230 96
Akita 11 432 3,672 0.27 1,020 102 42
Yamagata 15 631 4,056 0.38 1,541 111 40
Fukushima 23 1,094 4,686 0.30 1,415 192 77
Ibaraki 30 1,331 4,429 0.25 1,117 290 119
Tochigi 23 1,128 4,745 0.29 1,412 195 79
Gunma 21 1,087 4,696 0.27 1,346 194 80
Saitama 76 3,700 4,826 0.24 1,178 719 314
Chiba 67 3,123 4,633 0.24 1,137 615 274
Tokyo 200 10,596 5,275 0.29 1,577 1,304 671
Kanagawa 97 4,796 4,922 0.23 1,155 896 415
Niigata 25 1,227 4,737 0.29 1,390 228 88
Toyama 13 647 4,723 0.33 1,591 105 40
Ishikawa 15 718 4,599 0.33 1,527 114 47
Fukui 11 551 4,713 0.41 1,949 78 28
Yamanashi 10 457 4,416 0.29 1,308 83 34
Nagano 22 1,055 4,591 0.27 1,247 209 84
Gifu 23 1,157 4,985 0.29 1,474 201 78
Shizuoka 47 2,159 4,539 0.31 1,420 368 152
Aichi 88 4,699 5,289 0.28 1,513 731 310
Mie 22 1,013 4,571 0.29 1,334 179 75
Shiga 16 764 4,566 0.30 1,382 139 55
Kyoto 30 1,437 4,755 0.25 1,227 251 117
Osaka 111 5,799 5,201 0.27 1,412 864 410
Hyogo 61 3,025 4,884 0.25 1,231 550 245
Nara 14 683 4,671 0.25 1,175 136 58
Wakayama 12 521 4,219 0.28 1,193 97 43
Tottori 7 329 4,155 0.34 1,414 57 23
Shimane 8 339 4,072 0.29 1,192 68 28
Okayama 23 1,105 4,668 0.28 1,347 190 82
Hiroshima 35 1,710 4,814 0.27 1,344 281 127
Yamaguchi 17 742 4,213 0.27 1,140 139 65
Tokushima 11 461 4,179 0.33 1,397 75 33
Kagawa 12 636 4,927 0.30 1,484 98 42
Ehime 17 761 4,405 0.26 1,183 139 64
Kochi 9 372 4,003 0.26 1,065 72 35
Fukuoka 68 3,169 4,597 0.29 1,360 506 232
Saga 11 477 4,245 0.34 1,471 83 32
Nagasaki 18 1,051 4,129 0.30 1,239 138 62
Kumamoto 24 1,123 4,670 0.31 1,471 178 76
Oita 15 624 4,025 0.29 1,188 116 52
Miyazaki 15 576 3,798 0.29 1,111 111 51
Kagoshima 21 903 4,118 0.27 1,125 166 80
Okinawa 14 598 4,117 0.23 957 145 62
Total 1,559 73,607 4,719 0.27 1,309 12,558 5,622
* 1.Population and number of households are based on"Population, Demography, and Number of House holds based on the
Basic Resident Registers(as of 1 January 2016)" of the Ministry of Internal Affairs and Communications.
2.The figures are now policies excluding converted contracts.
3 the population does not include non-Japanese residents.
17Figu r e 2 4 : Po lic ie s in Fo r c e fo r In dividu al In su r an c e by Pr e fe c t u r e
(As o f t h e En d o f FY 2 0 1 6 )
Individual Insurance Amount per Policies per Amount per
Prefecture Number Amount policy household household
（ten thousand） （billion yen） （thousand yen） （Number） （thousand yen）
Hokkaido 701 29,160 4,155 2.55 10,632
Aomori 162 8,035 4,954 2.76 13,684
Iwate 154 7,561 4,889 2.97 14,552
Miyagi 329 16,194 4,916 3.39 16,707
Akita 125 5,786 4,629 2.94 13,642
Yamagata 165 8,018 4,841 4.04 19,590
Fukushima 256 12,811 5,003 3.31 16,570
Ibaraki 333 16,613 4,987 2.79 13,950
Tochigi 270 14,788 5,462 3.38 18,509
Gunma 252 13,648 5,405 3.12 16,905
Saitama 886 46,470 5,243 2.82 14,794
Chiba 779 40,213 5,158 2.83 14,640
Tokyo 1,923 109,664 5,700 2.86 16,323
Kanagawa 1,132 59,530 5,257 2.72 14,341
Niigata 295 16,045 5,428 3.34 18,172
Toyama 167 8,930 5,329 4.11 21,958
Ishikawa 172 8,988 5,197 3.67 19,110
Fukui 127 6,973 5,480 4.49 24,648
Yamanashi 111 5,837 5,228 3.19 16,705
Nagano 266 13,739 5,149 3.15 16,233
Gifu 262 14,089 5,358 3.35 17,953
Shizuoka 532 26,648 5,006 3.50 17,524
Aichi 991 54,507 5,495 3.19 17,555
Mie 239 12,166 5,083 3.15 16,016
Shiga 181 9,427 5,186 3.28 17,049
Kyoto 330 16,890 5,104 2.82 14,428
Osaka 1,175 64,377 5,476 2.86 15,677
Hyogo 690 35,368 5,123 2.81 14,403
Nara 169 8,708 5,139 2.91 14,978
Wakayama 132 6,371 4,807 3.03 14,581
Tottori 87 4,368 4,971 3.76 18,732
Shimane 89 4,359 4,852 3.15 15,310
Okayama 260 13,508 5,192 3.17 16,462
Hiroshima 380 19,044 5,002 2.99 14,971
Yamaguchi 188 8,701 4,614 2.89 13,372
Tokushima 113 5,600 4,952 3.42 16,942
Kagawa 139 7,586 5,437 3.25 17,689
Ehime 179 8,975 5,011 2.78 13,944
Kochi 101 4,797 4,726 2.89 13,699
Fukuoka 705 33,828 4,794 3.02 14,522
Saga 119 5,847 4,880 3.69 18,019
Nagasaki 192 8,976 4,670 3.06 14,327
Kumamoto 247 11,500 4,653 3.23 15,068
Oita 162 7,184 4,422 3.09 13,671
Miyazaki 142 6,011 4,219 2.74 11,598
Kagoshima 219 9,540 4,351 2.73 11,889
Okinawa 121 5,501 4,524 1.94 8,799
Total 16,772 862,905 5,144 2.98 15,348
Note: Population and number of households are based on "Population, Demography and Number of
Households Based on the Basic Resident Registers(as of January 2016)" of the Ministry of Internal affairs
and Communications.
182 Insurance Products for Groups
(1) Group Insurance
X. New Policies
The aggregated number of the newly insured (the number after resolving double counting of
insured of coinsurance undertaken by multiple insurers) and the amount of new policies for
group insurance were 0.43 million (93.5% y/y) and 3,30 billion yen (78.2% y/y). [Figures 25
and 28]
Looking at the aggregated number of the newly insured, new policies for group insurance
had been declining since some policies of the group term insurance existing at that time were
switched to general welfare group term insurance in fiscal 1997. However, it has remained
on the same level since fiscal 2006.
Of all the new policies, the amount of general welfare group term insurance ranked top (1,426
billion yen, 47.1% of the total), followed by group credit life insurance (965 billion yen, 31.8%)
and group term insurance (639 billion yen, 21.1%). [Figure 26]
XI. Policies in Force
The number of the insured (aggregated) and the amount of policies in force were 38.86
million (100.3% y/y) and 379,279 billion yen (101.1% y/y). [Figures 25 and 29]
Of all the policies in force, the amount of group credit life insurance ranked top (180,410
billion yen, 47.6% of the total), followed by group term insurance (109,408 billion yen, 28.8%)
and general welfare group term insurance (88,882 billion yen, 23.4%). [Figure 27]
XII. Lapses and Surrenders
The amount of lapses and surrenders of group insurance 12 decreased from the previous
year to 7,372 billion yen (89.9% y/y), and the ratio of lapses and surrenders 13 also decreased
to 2.0 (down by 0.2 points from the previous year). [Figure 30]
[Major Types of Group Insurance]
Group Term Insurance: A kind of voluntary insurance product companies introduce for
the purpose of welfare for its members, under which the applicants become insured and
pay insurance premium.
General Welfare Group Term Insurance: A kind of term insurance companies requires
its all members to subscribe mandatorily in principle for the purpose of providing life
security to the surviving relatives of the member. Contracts are renewed every year and
the companies pay the premium.
Group Credit Life Insurance: A kind of insurance used for the conservation of loans such
as housing loans, under which a debtor of the loan becomes the insured and credit
providers (e.g. banks) or credit guarantee institutions become policyholders and
beneficiaries. Under group credit life insurance, in case the debtor dies or become affected
by prescribed state of disabilities, benefits equivalent to the amount of unpaid debts will
be paid to the policyholder to clear the debt.
12 Amount of lapses and surrenders = ( lapses + surrenders + total of decrease in amount of a policy) -
(reinstatements + total of increase in amount of a policy)
13 Ratio of lapses and surrenders = ( amount of lapses and surrenders / amount of policies in force at the beginning of
fiscal year )* 100%
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