Japan Insurance Market Largely Driven By Ageing Population: Ken Research by Ken Research

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TABLE OF CONTENTS 1.

Asia-Pacific Insurance Industry

1.1.

Industry Introduction

1.2.

Asia-Pacific Insurance Market Size by Direct Written Premium, 2005-2012P

1.3.

Asia-Pacific Insurance Market Segmentation

1.3.1. By Geography, 2005-2012P 1.3.2. By Life and Non Life, 2005-2012P 2.

Japan Insurance Industry

2.1.

Japan Insurance Market Size by Direct Written Premium, FY’2005-FY’2012

Japan Insurance Government Regulations

Japan Insurance Industry Value Chain

Japan Life Insurance Market

5.1.

Japan Life Insurance Market Size, FY’2005-FY’2012

5.2.

Life Insurance Segmentation, FY’2005-FY’2012

5.3.

Market Share of Major Life Insurers in Japan, FY’2012

5.4.

Japan Life Insurance Market Future Outlook and Projection, FY’ 2013-FY’2016

Japan Non-Life Insurance Market

6.1.

Japan Non-Life Insurance Market Size, FY’2005-FY’2012

6.2.

Japan Non Life Distribution Channel, FY’2010-FY’2012

Non-Life Insurance Segmentation, FY’2005-FY’2012

7.1.

Japan Automobile Insurance Industry

7.1.1. Japan Automobile Insurance Market Size, FY’2005-FY’2012 7.1.2. Automobile Insurance Segmentation, FY’2005-FY’2012

7.1.3. Market Share of Domestic and Foreign Insurers in Automobile Insurance Industry in Japan, FY’2012 7.1.4. Japan Automobile Insurance Market Future Outlook and Projection, FY’2013-FY’2016 7.2.

Japan Fire Insurance Industry

7.2.1. Japan Fire Insurance Market Size and Introduction, FY’2005-FY’2012 7.3.1. Market Share of Domestic and Foreign Insurers in Fire Insurance Industry in Japan, FY’2012 7.3.2. Japan Fire Insurance Market Future Outlook and Projection, FY’2013-FY’2016 7.3.

Japan Personal Accident Insurance Industry

7.3.1. Japan Personal Accident Insurance Market Size and Introduction, FY’2005-FY’2012 7.3.2. Market Share of Domestic and Foreign Insurers in Personal Accident Insurance Industry in Japan, FY’2012 7.3.3. Japan Personal Accident Insurance Market Future Outlook and Projection, FY’2013FY’2016 7.4.

Japan Marine and Inland Transit Insurance Industry

7.4.1. Japan Marine and Inland Transit Insurance Market Size and Introduction, FY’2005FY’2012 7.4.2. Marine and Inland Transit Insurance Segmentation, FY’2005-FY’2012 7.4.3. Market Share of Domestic and Foreign Insurers in Marine and Inland Transit Insurance Industry in Japan, FY’2012 7.4.4. Japan Marine and Inland Transit Insurance Market Future Outlook and Projection, FY’2013-FY’2016 7.5.

Japan Miscellaneous Casualty Insurance Industry

7.5.1. Japan Miscellaneous Casualty Insurance Market Size and Introduction, FY’2005FY’2012 7.5.2. Miscellaneous Casualty Insurance Segmentation, FY’2005-FY’2012 7.5.3. Market Share of Domestic and Foreign Insuerers in Miscellaneous Casualty Insurance Industry in Japan, FY’2012 3

7.5.4. Japan Miscellaneous Casualty Insurance Market Future Outlook and Projection, FY’2013-FY’2016 8.

Japan Non-Life Insurance Market Future Outlook and Projection, FY’2013-FY’2016

Japan Insurance Industry Trends and Developments

10.

Asia-Pacific Insurance Industry Future Outlook

10.1. Asia-Pacific Insurance Industry Future Projections 10.1.1. By Geography, 2013-2016 11.

Japan Insurance Industry Future Outlook and Projections, FY’2013-FY’2016

11.1. Cause and Effect Relationship Between Dependent and Independent Factors Prevailing in Japan Insurance Market 12.

Company Profile of Major Players in Japan Life Insurance Industry

12.1. Japan Post Insurance 12.1.1. Company Profile 12.1.2. Business Strategies 12.1.3. Financial Performance 12.2. Nippon Life Insurance 12.2.1. Company Overview 12.2.2. Business Strategies 12.2.3. Financial Performance 12.3. Meiji Yasuda Life Insurance 12.3.1. Company Overview 12.3.2. Business Strategies 12.3.3. Financial Performance 13.

Company Profile of Major Players in Japan Non-Life Insurance Industry

13.1. MS&AD Insurance 4

13.1.1. Company Overview 13.1.2. Business Strategies 13.1.3. Financial Performance 13.2. NKSJ Holdings 13.2.1. Company Overview 13.2.2. Business Strategies 13.2.3. Financial Performance 13.3. Tokio Marine and Nichido Fire 13.3.1. Company Overview 13.3.2. Business Strategies 13.3.3. Financial Performance 14.

Japan Insurance Industry Macro-Economic Indicators: Historical and Projections

14.1. Japan Population, 2005-2016 14.2. GDP of Japan, 2005-2016 14.3. Healthcare Expenditure of Japan, 2005-2016 14.4. Total Vehicle in Use in Japan, 2005-2016 15.

Appendix

15.1. Market Definitions 15.2. Abbreviations 15.3. Research Methodology Data Collection Methods Approach Variables (Dependent and Independent) Multi Factor Based Sensitivity Model 5

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Final Conclusion 15.4. Disclaimer

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LIST OF FIGURES Figure 1: Asia-Pacific Insurance Market Size on the Basis of Direct Written Premium in USD Million, 2005-2012P Figure 2: Asia-Pacific Insurance Market Segmentation by Life and non Life on the Basis of Direct Written Premium in Percentage, 2005-2012P Figure 3: Japan Insurance Market Size on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 Figure 4: Insurance Value Chain Figure 5: Japan Life Insurance Market Size on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 Figure 6: Japan life Insurance Market Segmentation by Individual Insurance and Annuities, Group Insurance and Annuities and Others on the Basis of Direct Written Premium in Percentage, FY’2005-FY’2012 Figure 7: Market Share of Major Life Insurers on the Basis of Direct Written Premium in Percentage, FY’2012 Figure 8: Japan Life Insurance Market Projections on the Basis of Direct Written Premium in USD Million, FY’2013-FY’2016 Figure 9: Japan Non Life Insurance Market Size on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 Figure 10: Japan Non life Insurance Distribution Channel by Agents, Direct Sales and Broker on the Basis of Direct Written Premium in Percentage, FY’2010-FY’2012 Figure 11: Japan Non life Insurance Market Segmentation by Automobile, Fire, Personal Accident, Miscellaneous Casualty, Marine and Inland Transit on the Basis of Direct Written Premium in Percentage, 2005-2012 Figure 12: Japan Automobile Insurance Market Size on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 Figure 13: Japan Automobile Insurance Market Size on the Basis of Net Written Premium in USD Million, FY’2005-FY’2012

Figure 14: Japan Automobile Insurance Market Segmentation by Voluntary Automobile, and Compulsory Automobile Liability on the Basis of Direct Written Premium in Percentage, 20052012 Figure 15: Market Share of Domestic and Foreign Insurers in Automobile Insurance Industry on the Basis owithDirect Written Premium in Percentage, FY’2012 Figure 16: Japan Fire Insurance Market Size on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 Figure 17: Japan Fire Insurance Market Size on the Basis of Net Written Premium in USD Million, 2005-2012 Figure 18: Market Share of Domestic and Foreign Insurers in Fire Insurance Industry on the Basis of Direct Written Premium in Percentage, FY’2012 Figure 19: Japan Fire Insurance Market Projections on the Basis of Direct Written Premium in USD Million, FY’2013-FY’2016 Figure 20: Japan Personal Accident Insurance Market Size on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 Figure 21: Japan Personal Accident Insurance Market Size on the Basis of Net Written Premium in USD Million, FY’2005-FY’2012 Figure 22: Market Share of Domestic and Foreign Insurers in Personal Accident Insurance Industry on the Basis of Direct Written Premium in Percentage, FY’2012 Figure 23: Japan Personal Accident Insurance Market Projections on the Basis of Direct Written Premium in USD Million, FY’2013-FY’2016 Figure 24: Japan Marine and Inland Transit Insurance Market Size on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 Figure 25: Japan Marine and Inland Transit Insurance Market Size on the Basis of Net Written Premium in USD Million, FY’2005-FY’2012 Figure 26: Japan Marine and Inland Transit Insurance Market Segmentation by Marine Cargo and Hull and Inland Transit Insurance on the Basis of Direct Written Premium in Percentage, FY’2005-FY’2012 Figure 27: Market Share of Domestic and Foreign Insurers in Marine and Inland Transit Insurance Industry on the Basis of Direct Written Premium in Percentage, FY’2012 8

Figure 28: Japan Miscellaneous Casualty Insurance Market Size on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 Figure 29: Japan Miscellaneous Casualty Insurance Market Size on the Basis of Net Written Premium in USD Million, FY’2005-FY’2012 Figure 30: Market Share of Domestic and Foreign Insurers in Miscellaneous Casualty Insurance Industry on the Basis of Direct Written Premium in Percentage, FY’201 Figure 31: Japan Miscellaneous Casualty Insurance Market Projections on the Basis of Direct Written Premium in USD Million, FY’2013-FY’2016 Figure 32: Japan Non life Insurance Market Projections on the Basis of Direct Written Premium in USD Million, FY’2013-FY’2016 Figure 33: Japan Insurance Market Projections on the Basis of Direct Written Premium in USD Million, 2013-2016 Figure 34: Japan Life Insurance Premium Income of Japan Post Insurance in USD Million, FY’2008-FY’2012 Figure 35: Japan Life Insurance Premium Income of Nippon Life Insurance in USD Million, FY’2005-FY’2012 Figure 36: Japan Life Insurance Premium Income of Meiji Yasuda Life Insurance in USD Million, FY’2005-FY’2012 Figure 37: Japan Life Insurance Net Premium Written of MS&AD Insurance in USD Million, FY’2008-FY’2012 Figure 38: Japan Life Insurance Net Written Premium of NSJK Holdings Insurance in USD Million, FY’2010-FY’2012 Figure 39: Japan Non-Life Insurance Net Written Premium of Tokio Marine and Nichido Fire Insurance in USD Million, FY’2005-FY’2012 Figure 40: Japan Population in Million, 2005-s2016 Figure 41: GDP of Japan in USD Million, 2005-2016 Figure 42: Healthcare Expenditure of Japan in USD Million, 2005-2016 Figure 43: Total Vehicle in Use in Japan in Million, 2005-2016

LIST OF TABLES Table 1: Asia-Pacific Insurance Market Segmentation by Countries on the Basis of Direct Written Premium in USD Billion, 2005 -2012P Table 2: Asia-Pacific Insurance Market Segmentation by Life and Non Life on the Basis of Direct Written Premium in USD Billion, 2005 -2012P Table 3: Japan life Insurance Market Segmentation by Individual Insurance and Annuities, Group Insurance and Annuities and Others on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 Table 4: Market Share of Major Life Insurers on the Basis of Direct Written Premium in USD Million, FY’2012 Table 5: Japan Non life Insurance Market Segmentation by Agents, Direct Sales and Broker on the Basis of Direct Written Premium in USD Million, FY’2010-FY’2012 Table 6: Japan Automobile Insurance Market Segmentation by Voluntary Automobile, and Compulsory Automobile Liability on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 Table 7: Market Share of Domestic and Foreign Insurers in Automobile Insurance Industry on the Basis of Direct Written Premium in USD Million, FY’2012 Table 8: Japan Automobile Insurance Market Projections on the Basis of Direct Written Premium in USD Million, 2013-2016 Table 9: Market Share of Domestic and Foreign Insurers in Fire Insurance Industry on the Basis of Direct Written Premium in USD Million, FY’2012 Table 10: Market Share of Domestic and Foreign Insurers in Personal Accident Insurance Industry on the Basis of Direct Written Premium in USD Million, FY’2012 Table 11: Japan Marine and Inland Transit Insurance Market Segmentation by Marine Cargo and Hull and Inland Transit Insurance on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 Table 12: Market Share of Domestic and Foreign Insurers in Marine and Inland Transit Insurance Industry on the Basis of Direct Written Premium in USD Million, FY’2012 Table 13: Japan Marine and Inland Transit Insurance Market Projections on the Basis of Direct Written Premium in USD Million, FY’2013 -FY’2016 10

Table 14: Japan Miscellaneous Casualty Insurance Market Segmentation on the Basis of Direct Written Premium in Percentage, FY’2005-FY’2012 Table 15: Japan Miscellaneous Casualty Insurance Market Segmentation on the Basis of Direct Written Premium in USD Million, FY’2005 -FY’2012 Table 16: Market Share of Domestic and Foreign Insurers in Miscellaneous Casualty Insurance Industry on the Basis of Direct Written Premium in USD Million, FY’2012 Table 17: Asia-Pacific Insurance Market Projections by Countries on the Basis of Direct Written Premium in USD Million, 2013-2016 Table 18: Cause and Effect Relationship Analysis between Industry Factors and Expected Industry Prospects of Japan Insurance Market Table 19: Correlation Matrix of the Japan Insurance Industry Table 20: Regression Coefficients Output of Japan Insurance Industry

ASIA-PACIFIC INSURANCE MARKET SIZE BY DIRECT WRITTEN PREMIUM, 2005-2012P

The insurance market in Asia-Pacific region has grown remarkably over the past few years due to the growth in the emerging market such as China, Japan, India, Australia, Taiwan and South Korea. The countries in the Asia-Pacific region are at different stages of economic development unlike the European countries and the US which has created significant opportunities for the insurers in the region in order to serve the financial needs of the customers. The market in the region has grown at a CAGR of 11.9% from USD ~ million in 2005 to USD ~million in 2012â&#x20AC;Ś

Figure: Asia-Pacific Insurance Market Size on the Basis of Direct Written Premium in USD Million, 2005-2012P 16,00,000.0 14,00,000.0 USD Million

12,00,000.0 10,00,000.0 8,00,000.0 6,00,000.0 4,00,000.0 2,00,000.0 0.0 2005

2006

2007

2008

2009

2010

2011

2012P

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ASIA-PACIFIC INSURANCE MARKET SEGMENTATION

BY GEOGRAPHY, 2005-2012P

Asia-Pacific insurance industry is majorly contributed by 6 major countries such as Japan, China, South Korea, Taiwan, India and Australia with the share of ~% in 2012. Japan insurance market is the second largest in the world with the contribution of more than ~% in 2012…. China insurance industry is one China insurance industry is one of of the predominant markets in the insurance industry in the the predominant markets in the Asia-Pacific region with a contribution of ~% of the direct insurance industry in the AsiaPacific region with a contribution written premium in the region in 2012… of ~% of the direct written premium in the region in 2012.

South Korea is the third largest market with a contribution of ~% in 2012. The country insurance sector is more complicated with limited growth opportunities in comparison with the growing market in the region such as China and India… Table: Asia-Pacific Insurance Market Segmentation by Countries on the Basis of Direct Written Premium in USD Billion, 2005-2012P Countries

2005

2006

2007

2008

2009

2010

2011

2012P

Japan China South Korea Taiwan India Australia Hong Kong Singapore Thailand Malaysia Indonesia

New Zealand Philippines Vietnam Pakistan Kazakhstan Bangladesh Sri Lanka Total

JAPAN INSURANCE INDUSTRY

JAPAN INSURANCE MARKET SIZE BY DIRECT WRITTEN PREMIUM, FY’2005-FY’2012

Japan insurance industry is the second largest market in the world after the US. The country’s insurance market has increased at a CAGR of 10.4% from FY’2005-FY’2012 with the direct written premium of USD ~ million in FY’2012 in Japan insurance industry is the comparison to USD ~ million in FY’2005… The second largest market in the world insurance companies in Japan has experienced an after the US and has experienced a direct written premium of USD ~ increase of 2% in assets to JPY ~ million in FY’2012 in million in FY’2012 comparison to JPY ~ million in FY’2011 due to surge in unrealized capital gains which has inclined the value of investment assets. …In FY’2011, the country insurance market comprised of only ~ life insurance companies in comparison to ~ life insurers in the US. The non life insurance industry of the country consisted of ~ domestic players and ~ foreign insurers offering their products in FY’2011…

Figure: Japan Insurance Market Size on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 7,00,000.0 6,00,000.0

USD Million

5,00,000.0 4,00,000.0 3,00,000.0 2,00,000.0 1,00,000.0 0.0 FY'2005

FY'2006

FY'2007

FY'2008

FY'2009

FY'2010

FY'2011

FY'2012

Note: FY ending- 31st March Life Insurance is in Premium Income Non-Life Insurance is in Direct Written Premium

JAPAN INSURANCE INDUSTRY

JAPAN INSURANCE MARKET SIZE BY DIRECT WRITTEN PREMIUM, FY’2005-FY’2012

unrealized capital gains which has inclined the value of investment assets. …In FY’2011, the country insurance market comprised of only ~ life insurance companies in comparison to ~ life insurers in the US. The non life insurance industry of the country consisted of ~ domestic players and ~ foreign insurers offering their products in FY’2011… Figure: Japan Insurance Market Size on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 7,00,000.0 6,00,000.0

USD Million

5,00,000.0 4,00,000.0 3,00,000.0 2,00,000.0 1,00,000.0 0.0 FY'2005

FY'2006

FY'2007

FY'2008

FY'2009

FY'2010

FY'2011

FY'2012

Note: FY ending- 31st March Life Insurance is in Premium Income Non-Life Insurance is in Direct Written Premium

JAPAN LIFE INSURANCE MARKET

LIFE INSURANCE SEGMENTATION, FY’2005-FY’2012

Japan insurance market has been dominated by individual insurance with the contribution of ~% in FY’2012. The individual insurance market has witnessed an increase of ~% from USD ~ million in FY’2011 to USD ~ million in FY’2012…. In FY’2011, ~% of the direct written 16

premium is generated from whole life insurance policy, ~% is contributed from endowment life insurance plan, ~% is produced from cancer insurance, ~% from term insurance plan, ~% from juvenile insurance and rest is contributed from other type of insurance. Individual annuity is the second largest market with the contribution of ~% in FY’2012. The market has experienced a decline from USD ~ million in FY’2011 to USD ~ million in FY’2012 on account of sales restrictions on variable individual annuities by some life insurers of the country…. Group insurance contributed around ~% in FY’2012 with the direct written premium of USD ~ million in FY’2012. The number of contracts in group insurance business in force has decreased from ~ million units in FY’2005 to ~ million units in FY’2011 due to the switched from traditional group term insurance to general welfare group term insurance plan.

Figure: Japan life Insurance Market Segmentation by Individual Insurance and Annuities, Group Insurance and Annuities and Others on the Basis of Direct Written Premium in Percentage, FY’2005-FY’2012 1.2

1.0

In Percentage

0.8

0.6

0.4

0.2

0.0 FY'2005 Others

FY'2006

FY'2007

Group Insurance

FY'2008

Group Annuities

FY'2009

FY'2010

Individual Annuities

FY'2011

FY'2012

Individual Insurance

Note: FY ending- 31st March; Life Insurance is in Premium Income

Table: Japan life Insurance Market Segmentation by Individual Insurance and Annuities, Group Insurance and Annuities and Others on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 Segments

FY’2005

FY’2006

FY’2007

FY’2008

FY’2009

FY’2010

FY’2011

FY’2012

Individual Insurance Individual Annuities Group Annuities Group Insurance Others Total Note: FY ending- 31st March;Life Insurance is in Premium Income

JAPAN NON-LIFE INSURANCE MARKET

JAPAN NON LIFE DISTRIBUTION CHANNEL, FY’2010-FY’2012

…The agents are the main channel in non life insurance distribution in Japan with the contribution of ~% in FY2012... In FY’2012 there are ~ agents are employed out of which ~ agents are full time and rest ~ agents are part time. The direct sales stand second in the list of the distribution channel with the share of ~% and number of sales staff are ~ in FY’2012… The broker segment in Japan non life insurance distribution channel contributes a marginal share of ~% in FY’2012…

Figure: Japan Non life Insurance Distribution Channel by Agents, Direct Sales and Broker on the Basis of Direct Written Premium in Percentage, FY’2010-FY’2012 100.0%

98.0%

In Percentage %

96.0%

94.0%

92.0%

90.0%

88.0% FY'2010

FY'2011

Broker

FY'2012

Direct Sales

Agents

Note: FY ending- 31st March

Table: Japan Non life Insurance Market Segmentation by Agents, Direct Sales and Broker on the Basis of Direct Written Premium in USD Million, FY’2010-FY’2012 Channel

FY’2010

FY’2011

FY’2012

Agents Direct Sales Broker Total Note: FY ending- 31st March

JAPAN AUTOMOBILE INSURANCE INDUSTRY

MARKET SHARE OF DOMESTIC AND FOREIGN INSURERS IN AUTOMOBILE INSURANCE INDUSTRY IN JAPAN, FY’2012

The automobile insurance industry in Japan is dominated by domestic insurers with the share of ~% and the direct written premium of USD ~ million in FY’2012. The major automobile domestic insurance companies in the country are ACE insurance, Aioi Nissay Dowa Insurance, AXA general insurance, E design insurance, Mitsui Direct general insurance company, Nipponkoa Insurance, SAISON Automobile and Fire Insurance, SBI insurance, Secom general insurance, Sony Assurance, Tokio Marine and Nichido fire and others… Figure: Market Share of Domestic and Foreign Insurers in Automobile Insurance Industry on the Basis of Direct Written Premium in Percentage, FY’2012

Domestic

Foreign

Note: FY ending- 31st March

Table: Market Share of Domestic and Foreign Insurers in Automobile Insurance Industry on the Basis of Direct Written Premium in USD Million, FY’2012 Players

FY’2012

Domestic Insurers Foreign Insurers Total Note: FY ending- 31st March

JAPAN PERSONAL ACCIDENT INSURANCE INDUSTRY

JAPAN PERSONAL ACCIDENT INSURANCE MARKET FUTURE OUTLOOK AND PROJECTION, FY’2013-FY’2016 …In FY’2013, the direct written premium of personal accident insurance industry is expected to increase to USD ~ million which is up by approximately ~% from FY’2012. This is due to an occurrence of tsunami and earthquake in 2011 which has resulted into loss of around ~ lives in the country. The occurrence of natural calamities in the country has encouraged the people to secure their lives from unseen natural events. Figure: Japan Personal Accident Insurance Market Projections on the Basis of Direct Written Premium in USD Million, FY’2013-FY’2016 14,600.0 14,400.0 USD Million

14,200.0 14,000.0 13,800.0 13,600.0 13,400.0 13,200.0 13,000.0 FY'2013

FY'2014

FY'2015

FY'2016

Note: FY ending- 31st March

JAPAN MARINE AND INLAND TRANSIT INSURANCE INDUSTRY

MARINE AND INLAND TRANSIT INSURANCE SEGMENTATION, FY’2005-FY’2012

…The marine cargo insurance segment is the largest contributor in marine and inland transit insurance industry with the share of ~% and a direct written premium of USD ~ million in FY’2012. The marine hull insurance segment is the second largest market in Japan marine and inland transit industry contributing around ~% in FY’2012. The marine hull insurance policy covers the damage of the ship and its equipments such as furniture, machinery, tools, fuel and others. This type of insurance is generally taken by the owner of the ship. In FY’2012, the inland transit segment has contributed around ~% and a direct written premium of USD ~ million.

In Percentage%

Figure: Japan Marine and Inland Transit Insurance Market Segmentation by Marine Cargo and Hull and Inland Transit Insurance on the Basis of Direct Written Premium in Percentage, FY’2005-FY’2012 100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% FY'2005 FY'2006 FY'2007 Inland Transit

FY'2008 FY'2009 Marine Hull

FY'2010 FY'2011 Marine Cargo

FY'2012

Note: FY ending- 31st March

Table: Japan Marine and Inland Transit Insurance Market Segmentation by Marine Cargo and Hull and Inland Transit Insurance on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 Segments

FY’2005

FY’2006

FY’2007

FY’2008

FY’2009

FY’2010

FY’2011

FY’2012

Marine Cargo Marine Hull Inland Transit Total Note: FY ending- 31st March

ASIA-PACIFIC INSURANCE INDUSTRY FUTURE OUTLOOK

….Overall, the market of the Asia-Pacific insurance is expected to grow at a CAGR of ~% from 2013-2016. The market in the near future is expected to witness consolidation and higher competition level with the entrance of more global players in the market…

ASIA-PACIFIC INSURANCE INDUSTRY FUTURE PROJECTIONS

BY GEOGRAPHY, 2013-2016

The Asia-Pacific Insurance industry is expected to grow at a CAGR of 11.2% from 2013-2016 on account of rising population in the emerging market of Asia such as India and China. It is anticipated that the total direct written premium of the insurance products will increase to USD ~ million in 2016 from USD ~ million in 2012… 23

Table: Asia-Pacific Insurance Market Projections by Countries on the Basis of Direct Written Premium in USD Million, 2013-2016 Countries

2013

2014

2015

2016

Japan China South Korea Taiwan India Australia Hong Kong Singapore Thailand Malaysia Indonesia New Zealand Philippines Vietnam Pakistan Kazakhstan Bangladesh Sri Lanka Total

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JAPAN INSURANCE INDUSTRY FUTURE OUTLOOK AND PROJECTIONS, FY’2013-FY’2016 …The worst case scenario assumes ….The direct written premium of Japan insurance industry is expected to be USD ~ million in FY’2013 and will reach USD ~ million in FY’2016. The best case scenario anticipates…. The market is expected to grow at a CAGR of 11.5% in the next years and is projected to record direct written premium of USD ~ million in FY’2016.

Figure 1: Japan Insurance Market Projections on the Basis of Direct Written Premium in USD Million, 2013-2016 12,00,000.0 10,00,000.0 8,00,000.0 6,00,000.0 4,00,000.0 2,00,000.0 0.0 FY'2013 Worst Case

FY'2014

FY'2015 Base Case

FY'2016 Best Case

Note: FY ending- 31st March

CAUSE AND EFFECT RELATIONSHIP BETWEEN DEPENDENT AND INDEPENDENT FACTORS PREVAILING IN JAPAN INSURANCE MARKET

Table: Cause and Effect Relationship Analysis between Industry Factors and Expected Industry Prospects of Japan Insurance Market Industry Factors Strict Government Regulations and Support Ageing Population

Market Impact

Comments  Cause:  Positive Effect:

 Cause:  Effect:

Increasing Consumer Spending

 Cause:  Effect:

Increasing number of catastrophe events

 Cause:  Positive Effect:  Negative Effect:

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