The market has also demonstrated stable pricing conditions, according to a new Best’s Market Segment Report - “Market Segment Outlook: Japan Non-Life”.
A.M. Best said in a statement, two main factors will continue to foster stable pricing conditions among the non-life insurers in Japan – the presence of an effective reference rate system and an oligopolistic industry structure.
Additionally, in spite of the performance pressures arising from recent weather-related events, A.M. Best expects the industry to maintain very strong risk-adjusted capital positions.
Private companies operating in the sector also held solid risk-adjusted capital positions and profitable underwriting results despite economic- and weather-related pressures.
Japan’s overall market performance has remained quite profitable. The weighted average combined ratios for the private insurance segment generally remained under 95 per cent over the most recent five-year period.
However, the industry has been facing medium- to long-term challenges to grow its premium base, due to modest economic growth, falling accident rates resulting from advanced driver-assistance systems and the gradual shift in population demographics.
Despite these challenges, most private non-life insurers have continued to grow premium revenue, generate underwriting profits and maintain solid risk-adjusted capital positions that are supportive of their risk profiles.
A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry. More details at www.ambest.com
-- BERNAMA
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