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Establish an Insurance Company in Japan
Updated on Wednesday 25th January 2023 Rate this article
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In January 2016, the Bank of Japan introduced a negative interest rate strategy. This strategy enabled lower market interest rates, which started to have an impact on the single-premium insurance products. Our specialists in company formation in Japan can help you in establishing an insurance company in Japan.Types of insurances in Japan
In Japan, insurances can be:
1. Business insurances: they provide fundamental insurance for the protection and management of a company. Business insurances in Japan can be:
a. Vehicle insurances;
b. Personnel insurances;
c. Public liability insurances;
d. Building and content insurances.
2. Personal insurances: these are customized to meet a private person’s daily needs and cover him or her in case of an injury or damage, as well as to his or her assets or property. These insurances can be:
a. Home insurances;
b. Earthquake insurances;
c. Car insurances;
d. Health insurances;
e. Life insurances.
Our Japan company formation advisors can provide more details about the types of insurance in Japan.
Capital requirements for insurance businesses in Japan
According to the Financial Services Agency (FSA) in the country, the common framework, which represents the solvency margin standard, is set for both life and general insurance businesses in FY (financial year)1996.
The solvency margin ratio is set at the solvency margin (divided by ½ multiplied by the risk amount) multiplied by 100. Our company registration advisors in Japan can provide further information on the capital necessary to open such a company.
The initial capital required for such businesses is minimum JPY 1 billion.
The FSA in Japan permanently monitors and verifies in a regular basis all the insurance companies in the country, since their number is quite small (44 for life insurance and 55 for general insurance).
The FSA may require more reports and issues orders if needed from insurance companies, even when the solvency margin ratio of the business is above the regulatory minimum. Therefore, it might request more information on:
- • The company’s profitability;
- • The credit risk management;
- • The market risk management;
- • The liquidity risk management.
Investors who wish to open a company in Japan will most often apply for a business manager visa. This allows one to obtain residence in Japan and therefore be able to remain in the country for the long-term purpose of running the company. A business manager can apply for this visa based on his expertise and qualifications, however, he will also need to comply with other requirements.
For more details about insurance companies, or for assistance in starting a business in Japan, we invite you to speak to our Japan company formation executives.
Meet us in Tokyo
Call us now at +81 03-6414-4102 to set up an appointment with our company formation agents in Tokyo, Japan. Alternatively you can incorporate your company without traveling to Japan.
As our client, you will benefit from the joint expertize of local and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in Japan.
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