Number of small amount and short-term insurers in Japan FY 2022, by type

In the fiscal year 2022, around 32 small amount and short-term insurance companies in Japan offered life and medical-care insurance products. In total, there were around 120 so-called mini-insurers.

What is small amount and short-term insurance?

The small amount and short-term insurance system was first established in 2006 as part of the amendment of the Insurance Business Act in Japan. Small amount and short-term insurance companies offer mini insurance products. As the name suggests, the insurance period of such products is comparatively short, ranging from one year to two years in the case of non-life insurance, and benefits are limited to certain amounts. In return, customers pay lower premiums and benefit from rather flexible, on-demand type insurance products.

Large insurance companies are entering the market

The number of companies offering mini-insurance has been growing in past years, and large corporations have started to enter the market by establishing or acquiring mini insurance companies. Policies in force rose to around 10.9 million, along with an increase in the premium income. The range of products offered extends from insurance covering household goods and belongings, which accounted for the largest share of policies in force, to more specific types of products such as legal expense insurance, travel cancellation, or pet insurance.