Online Insurance in Japan: Seeking Avenues for Greater Growth
Online distribution of insurance in Japan continues to grow, but only accounts for a small fraction of the nation’s insurance industry. However, growth in online sales is poised to outpace the industry as a whole.
In the report Online Insurance in Japan: Seeking Avenues for Greater Growth, Celent analyzes the current state and potential of the online channel in Japan’s insurance industry. This analysis is accompanied by a detailed analysis of salient characteristics and trends in the online insurance channel.
Income from online life insurance premiums increased from 2007 to 2011 by a CAGR of 105.9%, compared to 5.3% for the life insurance industry as a whole. Meanwhile, net premium income among online non-life insurers grew at a 6.0% CAGR versus a 1.2% drop for the industry.
There are several key factors driving the rapid growth in online insurance:
- Easy-to-understand branding.
- Simplified product design.
- Low-priced products with high-quality services.
- Consumer comparison and selection of products.
- Products that meet customer needs.
“To maintain growth moving forward, the online channel will have to move beyond emphasizing ease of use and accessibility,” says KyongSun Kong, Analyst with Celent's Asian Financial Services Group and author of the report. “Insurers will need to work on creating an environment that fosters trust and a sense of security among consumers.”
This report features an in-depth analysis of insurer case studies detailing online insurance sales, as well as the factors driving growth in this channel.