Japan's Life Insurers See Surge in Single-Premium Whole Life Sales

Japan's major life insurers have seen significant growth in sales of yen-denominated single-premium whole life insurance products due to rising interest rates. According to recent reports, four leading insurers - Nippon Life Insurance, Meiji Yasuda Life Insurance, Sumitomo Life Insurance, and Dai-ichi Frontier Life Insurance - saw premium income from these products surge to approximately JPY2.38tn ($15.9bn) in fiscal 2025, a 2.4-fold increase from the previous year.

The products are attractive for wealth management and inheritance planning due to their favourable tax treatment compared to bank deposits. Policyholders pay the entire premium upfront, and beneficiaries receive a death benefit upon the policyholder's death. Many policies also provide surrender values exceeding the original premium if they are cancelled after a specified period.

Dai-ichi Frontier Life Insurance reported a 23.9% year-on-year increase in premium income from all yen-denominated products, with its flagship single-premium whole life product, Premier Present 5, benefiting from higher guaranteed yields reviewed twice a month in line with market interest rates.