According to Swiss Re, the market of industrial and commercial risks is poised to witness a 5.3% increase in 2016. Progression for 2015 is about 2.8% at 4.1 billion JPY (34 billion USD). Among market enabling factors, the Swiss reinsurer has invoked the deferral of tax increase on firms' turnover from October 2015 to April 2017 and GDP growth of 1.3% in 2016 (compared to 0.7% in 2015).
On the demand side, the decline of manufacturing activities and the decrease in the value of industrial goods will support insurance markets specialized in operating loss. The growth of the service industry will enhance the need in third party liability insurance while technological breakthroughs in recent years will continue to boost cyber insurance plans. The Japanese insurance market for industrial and commercial risks is the world’s third largest behind that of the United States and China.