The Evolution of Insurance Aggregators in Japan: A New Era in Choice

by KyongSun Kong, March 24, 2014
Industry Trends
Asia-Pacific

Abstract

New sales channels have been expanding their presence in Japan’s insurance industry. Among these are not only online channels but also insurance aggregators, which are increasingly being thrust into the spotlight for offering impartial insurance consultations and allowing consumers to choose from a selection of products from multiple insurers.

Insurance aggregators have enjoyed rapid growth in recent years. Celent predicts that this trend will continue, with insurance aggregator store numbers growing by a compound annual growth rate of 33% from 2009 to 2015. Meanwhile, the insurance aggregator share of Japan’s insurance market has reached approximately 5% and continues to increase steadily each year.

In the report The Evolution of Insurance Aggregators in Japan: A New Era in Choice, Celent offers an in-depth look at the issues facing the insurance aggregators, related IT issues, and factors behind the channel’s rapid growth.

“We are seeing dramatic growth in insurance aggregators’ networks,” says KyongSun Kong, Analyst with Celent’s Asian Financial Services Group and author of the report. “However, there will undoubtedly come a time when there is a glut in the market, and only companies with staff capable of supplying high-quality services can be expected to carve out lasting positions in the industry.”

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

Insurance Aggregator Business Models

2

 

Insurance Agencies in Japan

2

 

Evolving Insurance Aggregators

2

 

Brick-and-Mortar Shops

4

 

Customer-Visitation Agency Model

5

 

Online Insurance Aggregator Agents

6

Information Technology Use

8

 

Current State of Agent Systems

8

 

Shared Gateway

9

Areas Requiring Regulation

11

 

Commissions

11

 

Proposed Measures

11

Encouraging the Growth of a Promising Sales Channel

13

 

Responding to Changes in Consumer Behavior

13

 

Efficient Customer Acquisition

13

 

Insurance Premium Payout Support

14

 

Deployment of Systems with Advanced Functionality

14

 

Sales Staff Support Systems

14

 

Enhanced Legal Frameworks

15

 

Developing Human Resources

15

Conclusion

16

 

For Insurers

16

 

For Vendors

16

Leveraging Celent’s Expertise

18

 

Support for Financial Institutions

18

 

Support for Vendors

18

Related Celent Research

19

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