HONG KONG, June 3 (Bernama) -- Japan’s life insurers have increasingly relied on reinsurance in recent years, with the overall cession rate as a percentage of total gross premium written for the segment rising to more than 24% in 2023 and 2024 from just under 10% in 2020, according to a new AM Best report.
According to the new Best’s Special Report, “Japan Life Insurers Increase Use of Reinsurance,” the implementation of an economic value-based solvency regulation framework is driving the increased use of reinsurance. The new solvency regime, which is closely aligned with the Insurance Capital Standard, and known as J-ICS, took effect at the end of March 2026. Under the J-ICS, the new economic value-based solvency ratio will be more sensitive to fluctuations in interest rates, lapses, asset-liability management mismatches and longevity/mortality risks.
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