Long-Term Care Insurance Business

Long-Term Care Insurance Business Market Players

While Japan’s population is waning, elderly population is expanding rapidly. Insurance premium has been rising in tandem with the increase of the benefits paid per beneficiary. The use of long-term care services is expected to rise further.

Meanwhile, to address chronic labor shortages, long-term care services have been raising wages (with the government subsidy specifically for increasing wages of care workers), improving treatments to retain workers, and recruiting foreign workers. Although these measures are paying off in gradually, the speed of demand expansion for long-term care services is outpacing the improvements.

Concurrently, there has been an important shift of fundamental approach for long-term care. Based on the 2021 Revision of the Long-Term Care Insurance Act, a wider adoption of 'the database for establishing evidence-based care practice' (LIFE system) has been promoted to “support self-dependence” and “avoid being bedridden”.

This report analyzes the current status of services available under long-term care insurance system (in-home services, facility services, community-based integrated care system services, etc.), the trends of companies entering the long-term care insurance business, the care worker recruitment market, and future perspectives.

I. Market Environment of Long-Term Care Insurance Business

II. Trends of Long-Term Care Facilities & Long-Term Care Services

III. Trends of Enterprises Entering Long-Term Care Businesses

IV. Analysis of Trends in Recruitment of Care Workers