AM Best: stable outlook for the Japanese life insurance market

AM Best has upgraded its outlook for the Japanese life insurance market from negative to stable.

This decision follows the improved competitiveness of local insurers who are able to achieve a higher production level than prior to the pandemic.

According to the rating agency, the majority of life insurance companies have maintained very strong capital positions and are able to withstand the potential impacts of global financial market volatility.

AM Best also expects life insurance companies' operating performance to improve as a result of recovering top-line growth, higher foreign interest rates, lower domestic interest rates, and new product launches.