Market Overview

The domestic InsurTech market in this research is calculated based on the sales at IT vendors and startups in the market developing new insurance products and services and supporting the streamlining and upgrading of business processes.

The domestic InsurTech market size in FY2022 is expected to rise to 134.9% of that of previous fiscal year to attain 247,000 million yen. For insurance products for individuals, health promotion services for women have begun being enhanced, as life insurance companies one after another have collaborated with startups, affected partly by infertility treatment started being covered by insurance. Meanwhile, as for products and services geared to corporations, those products and services aiming for health & productivity management for SMEs and health promotions for all company members including company managers have gradually started being released.

When observing each environment surrounding InsurTech, first of all, while no particular changes in terms of legislation have been shown, the trend of PHR is worth focusing, because the promotion of PHR has been stipulated in the “Basic Policy on Economic and Fiscal Management and Reform 2022”, which has caused the preparation for it to rapidly be underway, including the launch of PHR Service Business Association (tentative name) in June 2022.l

Secondly, in terms of supporting environment, as no dramatic changes have been observed from the year before, building and expansion of proactive supporting environment remains being expected.

Lastly, in terms of technology, use of cloud has been gradually underway mainly at major life insurance companies while making a good balance with on premise configuration. On the other hand, open API is announced by limited life insurance companies, which indicates that each company is yet to determine the potential of blockchain and Metaverse.

Noteworthy Topics

InsurTech Expanded Not Only in Insurance Products & Services for Individuals but Also Those for Corporations

Conventionally, many of insurance products and services for corporations have been geared for SMEs. Namely, they have the nature to be used for business continuation measures such as for working capital, business continuation capital, inheritance measures, etc. Since around 2019, however, there emerged businesses offering insurance products and services covering from health promotion to early detection and early intervention for corporations, which are increasing.

Such products and services can be categorized into following three: Those for corporation, for corporate managers, and for employees.

First, among those services for corporation, in addition to help obtaining the “Health and Productivity Management Award” by METI as well as to address diagnosing and practicing health and productivity management, a service to help appoint industrial physicians has emerged. As those corporations certified as those that practice health and productivity management are to gain an advantage of being socially praised, such services are increasing.

Secondly, as for those services for corporate managers, advent of insurance to cover disease prevention, health promotion, early detection and even post-treatment support for corporate managers and executives is observed, as the enterprise operation as a whole can be affected if any contingency occurs to corporate managers or executives. In addition, new services including private nursing care for corporate managers have also emerged.

For employees, health promotion insurance geared to corporate managers and employees has been released. Service providers elaborate to offer various services including web-based management of medical check-up results as well as exercise amount management through the linkage with wearable terminals, and those services with gamification (game element) such as sharing goals with all employees and having fun while engaging in health management.

Future Outlook

The domestic InsurTech market size is expected to attain 318,000 million yen in FY2024.

For the development of insurance products and services, in addition to increase in those products with wider coverage from health promotion to prevention of progression of diseases for individuals, major life insurance companies are likely to be proactive in building and expanding the ecosystem with healthcare-related companies and startups. Aiming to attract the young generation, acquisition or launch of small-amount and short-term insurance companies have been in progress mainly by major life insurance companies, which have led to commence developing small-amount and short-term insurance products, some of which becoming noteworthy.

On the other hand, streamlining of business processes that used to be observed among conventional major life insurance companies, has spread to mid-size life insurance companies, which is likely to make automation of business procedures and quicker billing processing to be rapidly in progress.

Research Outline