HONG KONG, June 24 (Bernama-BUSINESS WIRE) — AM Best has revised its outlook on Japan’s life insurance market segment to stable from negative, as overall business conditions for the life insurers have improved compared to earlier stages of the COVID-19 pandemic, according to a new AM Best report.
In a new Best’s Market Segment Report, titled, “Market Segment Outlook: Japan Life Insurance,” AM Best notes that most Japanese life insurance companies maintain very strong capital positions, and are likely to be able to withstand the potential impacts on capital changes that may result from global financial market volatility. Several long-term and persistent challenges remain, including aging demographics and a shrinking working population, stagnant wages and evolving consumer needs. However, AM Best expects insurers’ operating performances in the near term to benefit from some tailwind factors, such as the positive momentum in top line recovery and the possibility of further foreign interest rate increases, as well as a bottoming out of domestic interest rates.