JAPAN Law and Practice Contributed by: Hironori Nishikino and Koji Kanazawa, Chuo Sogo LPC
technology to monitor their activities and record their health data. Another example is Sony Assurance Inc’s automobile insurance, where an insured has a “driving counter” installed in their car to monitor the insured’s driving. If it shows safe driving on the part of the insured, the insurer will provide cashback towards the insurance fees. The Fintech Support Desk The FSA regards the fintech trend quite positively. One example of the positive attitude of the FSA is the Fin- tech Support Desk, which was established to provide a streamlined process for fintech businesses. Indeed, the FSA appears to be watching developments regard- ing insurtech with a high degree of interest. 10.2 Regulatory Response See 10.1 Insurtech Developments . 11. Emerging Risks and New Products 11.1 Emerging Risks Affecting the Insurance Market Cybersecurity Risk Cyber-attacks have come to pose a serious and immi- nent risk that Japanese companies must address. Although various countermeasures are being imple- mented, they can easily be rendered ineffective. The Ministry of Economy, Trade and Industry of Japan (METI) has issued the Cybersecurity Management Guidelines, which state that cybersecurity is a critical business challenge and Japanese companies must take appropriate protective actions. In late 2025, the core systems of major companies such as Asahi Group Holdings and Askul were targeted, resulting in considerable social impact. To respond to such situations, insurance companies have developed insurance products to cover the costs of unauthorised disclosures of information or dam- ages caused by a cyber-attack. The survey conducted by the General Insurance Association of Japan, pub- lished in March 2025, shows growing recognition of cyber-risk as an important management issue. Com- pared with the 2023 survey, cyber-risk as a potential
threat to business activities increased significantly (by 22.9 points). Enhanced Focus on Natural Disaster Risk With the increasing frequency of natural disasters in Japan, insurance companies are strengthening their products to better address disaster risks. This includes enhancing coverage for earthquakes, typhoons and other events, along with streamlining claims pro- cesses for faster payouts. In 2025, widespread and substantial damage was sustained across Japan as a result of flooding triggered by heavy rainfall. 11.2 New Products or Alternative Solutions Health-Promoting Insurance Products Due to Japan’s aging population and increasing health consciousness, insurance products that encourage healthier lifestyles are gaining increasing attention. For example, products offering discounts or rewards based on health check results or daily activity data are becoming more popular. These products usually uti- lise wearable devices or mobile applications to track fitness, diet and sleep patterns, providing data directly to insurers. Embedded Insurance Embedded insurance, where insurance is integrated into other products and services, is expanding through collaborations with other industries. For instance, automakers are including car insurance in their car- sharing services, allowing customers to benefit from seamless coverage. Embedded insurance offers customer convenience and effective solutions while ensuring that users receive appropriate and timely protection. 12. Developments in Insurance Law 12.1 Significant Legislative or Regulatory Developments There have been few significant legislative or regula- tory developments in the field of insurance and rein- surance over the last two years. On 29 August 2025, the FSA announced “The FSA Strategic Priorities July 2025–June 2026.” According to these priorities, the policy for administering insur-
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