HONG KONG, Nov 4 (Bernama-BUSINESS WIRE) — AM Best is maintaining its stable market segment outlook on Japan’s non-life insurance segment, citing sustained profitable underwriting performance and carriers’ ability to weather market volatility and maintain solid risk-adjusted capital levels.
A new Best’s Market Segment Report, titled, “Market Segment Outlook: Japan Non-Life Insurance,” states that despite large-scale catastrophe losses in 2019, profitable performance in most other classes of business, particularly voluntary automobile insurance, non-life insurance companies in Japan still generated an overall underwriting profit. Although the COVID-19 pandemic has led to a slowdown in economic activity domestically and regionally, AM Best is of the view that COVID-19 is unlikely to have a significant impact on the underwriting performance of Japan’s non-life companies over the short to medium term. Claims directly related to COVID-19 are expected to be manageable, given that domestic non-life insurers generally have limited net exposure to event cancellation and business interruption risks in Japan.