Outlook improves on more favourable conditions in life market

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Overall business conditions for life insurers In Japan have improved compared to during earlier stages of the COVID-19 pandemic, prompting AM Best to revise its outlook on the life insurance market to ‘Stable’ from ‘Negative’.

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…

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