Japan: Insurers turn to disability income protection for profits
Source: Asia Insurance Review | Oct 2017
Japanese insurers are putting more focus on disability income insurance policies, including those designed for companies to offer protection against the loss of income due to illness or injury.
The products, which are less susceptible to interest rate swings, are lucrative for the insurers which have been suffering anaemic investment returns amid the Bank of Japan’s prolonged negative interest rate policy, reported Jiji Press.
Since last year, nine insurers, including Lifenet Insurance and Sumitomo Life Insurance, have launched disability income insurance policies for individual customers. In October, Nippon Life Insurance and Tokio Marine & Nichido Fire Insurance will follow suit.
Disability insurance pays monthly benefits and provides other merits for policyholders who become unable to work for a long time due to hospital treatment or serious physical impairment after illness or injury. Such benefits can be used to pay living costs that medical insurance does not usually cover. A