JAPAN Law and Practice Contributed by: Shinichiro Yamashita and Naruku Okamoto, Hiratsuka & Co
ogy, and there are currently no signs of any moves to enact a special law. It is expected that insurance products will also be designed on the basis of the compensation system set out in this Act. However, it is not yet clear whether this will give rise to new insurance risks or disputes, nor what form these might take. It is presumed that Japa- nese insurance companies are currently researching or developing insurance products tailored to next generation nuclear technology, but the extent of their progress has not been made public. 9. Legislative and Regulatory Key Trends 9.1 Regulatory Focus Areas and Supervisory Trends With regard to regulatory matters, Japanese regula- tors focus on: • strengthening the obligations of non-life insurance representatives and life insurance agents to estab- lish appropriate systems; • strengthening the obligations of insurance com- panies and similar entities to establish appropriate systems; and • prohibiting insurance companies and similar enti- ties from providing excessive benefits to policy- holders.
The first and the second points are aimed at ensuring customer-centred business practices, whilst the third point is aimed at realising a healthy competitive envi- ronment. The Insurance Business Act and its Enforce- ment Order have been amended, with the amended regulations in force since 1 June 2026 influencing insurers to establish appropriate systems. They relate mainly to internal systems, and it is not yet known whether they are influencing dispute risk. 9.2 Forthcoming Reforms and Market Impact As far as is known, there are no upcoming legisla- tive or regulatory reforms that are expected to impact insurance coverage, policy wording or claims handling practices.
173 I NSURANCE L I T IGATI O N 2026
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