Canada    FinTech Guide    Chapter 13    Japan


13. InsurTech
Japan  Japan

The social and political climate towards Insur-Tech-services is at a very early stage.



Legal Affairs


No license is required if the business is to provide information of potential clients to insurance agencies. If the business is insurance solicitor, the registration is required while such registration is not so difficult.

The FinTech business to underwrite insurance such as providing very short term insurance using mobile devices should be under the hard regulation of insurance underwriting; provided, however, there is a category of the "Small and Short Term Insurance Business." It can be registered under light regulation such as a JPY 10 million of minimum capitalization requirement (The minimum capitalization requirement for the regular insurance business is JPY 1,000 million.) The Small and Short Term Insurance Business is for underwriting of small and short term such as less than JPY 10,000,000 for life insurance, less than JPY 800,000 for health insurance or JPY 10,000,000 for damage insurance.

The data collection using IoT should be under the regulation of the protection of personal information defined by the guideline of the Personal Information Protection Commission and Financial Service Agency (FSA). The practical difficulty of this regulation is not high.



Economic Conditions


Some insurance companies start to collect data regarding the driving style of the customers using IoT device. Other InsurTech business is not popular in Japan. While there is a statistic which states InsurTech market in Japan is JPY 500 million per year, the accurate size of revenues and customers seems unclear.



Contributing Authors

Ushijima & Partners

Hiroyasu Kageshima
Tokyo, Japan

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Chapter Index:


1. Payment Services / Mobile Payment

2. Asset and Portfolio Management

3. Consulting and Broking Services / Robo-advisory / Auto-trading

4. Trading Platforms / Social Trading Platforms / Signal Following

5. Crowdfunding / Crowdinvesting / Crowdlending

6. Virtual Currency - Bitcoin

7. Loan Services / Factoring / Loan Broking / Finetrading

8. Online Banking Services

9. Analytics and Research / Data Management / Risk Management

10. Accounting

11. Identification

12. Online-pawning

13. InsurTech

14. RegTech

15. Initial Coin Offerings (ICOs)

Disclaimer:
The information in this guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.

Publication Date: 1 May 2018