2012年-IMF国际货币组织全球_Japan_Insurance_Core_Principles_78页_826kb

Summary of Japan: Insurance Core Principles—Detailed Assessment of Observance

Core Content

This document provides a comprehensive assessment of Japan's compliance with the Insurance Core Principles (ICPs) as adopted by the International Association of Insurance Supervisors (IAIS) in October 2011. The assessment was conducted in August 2012 as part of the Financial Sector Assessment Program (FSAP) and reflects the regulatory framework, supervisory practices, and market conditions as of December 2011. It outlines the current state of Japan's insurance sector, identifies key challenges, and offers recommendations for improvement.

Main Findings

Market Structure

• Japan is the second-largest insurance market globally, with aggregate insurance premiums accounting for 12.9% of the world total in 2010.
• The insurance sector's total assets amounted to ¥373 trillion at the end of 2010, representing 78% of GDP.
• The life insurance market is dominated by a few large players, with Japan Post Insurance (JPI) accounting for 21% of the life premium and the next four largest insurers accounting for an additional 43%, totaling 64%.
• The nonlife insurance market is even more concentrated, with the five largest insurers belonging to three groups controlling 82% of the market.
• Foreign-owned insurers account for about 50% of the total number of insurers, with a 20% market share in life insurance and less than 10% in nonlife insurance.

Regulatory and Supervisory Framework

• The Financial Services Agency (FSA), an external organ of the Cabinet Office, is the main authority responsible for insurance regulation and supervision.
• The FSA has strengthened its regulatory framework, including solvency requirements and corporate governance standards.
• The assessment notes that while the FSA has made progress, there are still areas for improvement, particularly in risk-based supervision, corporate governance, and crisis management.

Asset Allocations

• Life insurers allocate around 70% of their investments to government bonds, with JPI holding ¥96.7 trillion in assets as of March 2011.
• Nonlife insurers have a strong allocation to local equities, with a peak of over 30% in 2003, which has since decreased to about 20% in 2010.
• The nonlife sector also maintains a significant portion of its assets in government bonds, with a smaller share in corporate bonds and stocks.

Challenges and Concerns

• The Japanese insurance market is highly concentrated, which may limit competition and innovation.
• Low interest rates and declining equity prices have negatively impacted the profitability of insurers.
• The Japanese insurance sector is heavily exposed to natural catastrophes, making reinsurance coverage essential.
• JPI's lack of participation in new insurance products may hinder its competitiveness and the development of the "third sector" business.

Key Information

• The FSA has been working on improving its supervisory capabilities, including the development of a risk-rating methodology and increasing the frequency of inspections for larger insurers.
• The FSA is advised to enhance its ability to anticipate and manage crisis situations through more proactive macroprudential analysis and contingency planning.
• The FSA should also consider increasing the resources available for supervision and improving its independence through legally enforceable levies from the industry.
• Corporate governance and suitability requirements need to be revised to strengthen independent oversight.
• The FSA should make greater use of enforcement tools, such as the power to impose fines, to improve its supervisory approach.

Recommendations

• Develop a structured system for internal risk assessments and adopt a risk-based valuation regime.
• Increase the frequency of inspections, especially for the largest insurers.
• Enhance the independence of the FSA through industry financing.
• Strengthen the supervision of reinsurance, including improved documentation and transparency.
• Improve corporate governance to ensure independent oversight and enhance supervisory effectiveness.
• Expand the FSA's macroprudential analysis and cooperation with foreign supervisors.
• Encourage the development of new insurance products to promote innovation and competitiveness.

Conclusion

The assessment highlights Japan's strong regulatory framework and significant market concentration, which presents both opportunities and challenges. While the FSA has made progress in enhancing oversight and solvency requirements, there is a need for further improvements in risk management, corporate governance, and crisis preparedness to fully observe the ICPs. The report also emphasizes the importance of reinsurance in mitigating natural catastrophe risks and the need for a more dynamic and innovative insurance market.