The Japanese life insurance market has the following three characteristics: Huge market, huge inefficiencies and huge changes.

⋅Huge market

Japan's life insurance market is worth approximately ¥38 trillion*1  and roughly 90%*2 of Japanese households having life insurance policies.

⋅Huge inefficiencies

As the total household income continues to decline, many customers think life insurance premiums are a large financial burden. This in addition to most people thinking life insurance to be complicated and difficult to understand is resulting in much information asymmetry between customers and insurance companies and is the cause of various inefficiencies.

⋅Huge changes

There has been much change in other neighboring financial industries such as non-life insurance, securities and banking services. The advancement in technology has led to many financial services being offered via the Internet, and all financial institutions are required to strictly observe fiduciary duty.

At Lifenet, we view these characteristics as a business opportunity, and aim to be the leading company driving the growth of the online life insurance market.

*1 Based on data from Annual statistics by The Life Insurance Association of Japan (2022)

The market share for online life insurance in Japan currently stands at 4.4% for new policies sold*1.
Looking ahead, we see significant growth potential in the online distribution of life insurance, with 18.0% of customers expressing an interest to apply via the Internet*1.

Growth Potential of Online Life Insurance Market

*1: Based on data from Survey on Life Protection (2022) by Japan Institute of Life Insurance.

Since our business commencement in 2008, we have been a challenger in the life insurance industry, creating a new market for online life insurance and driving growth. Subsequently, with the digitization of financial services and the expansion of COVID-19, new players entered the market, which is led the traditional life insurers that had focused on the face-to-face channel to be forced to shift to online. We believe that the market is now in a period where the competitive environment is becoming increasingly severe as well as expanding.

In this environment, while we are a challenger in the life insurance industry as a whole, we also believe that we are in a position to be challenged in the online domain. We will maintain and strengthen the competitive advantage we have built up to date and will enhance investment for growth more than ever to solidify our position as the number one player in the online life insurance market.