Japan’s life insurers look to other Asian markets
Date: May 11, 2014
Source: NHK World
Japanese life insurance companies plan to boost their business in other Asian countries by adopting a sales method used in Japan. They are hoping to extend their reach in Asia’s emerging economies in the face of the shrinking domestic market.
Japan’s largest life insurer, Nippon Life Insurance, is stepping up Japanese-style sales activities in India. Life insurance policies are usually sold by banks in India. But in Japan, female employees of insurance companies pay regular visits to clients’ homes.
Nippon Life quadrupled the number of salespersons at its group company to 700 in the year to March. It plans to further expand its sales staff to 1,200 by next March.
The chief executive of Nippon Life Insurance, Hiroyuki Nishi, says sales clerks who can explain the complicated details of insurance policies are also in great demand in India. He says the firm wants to use this kind of sales strategy in China and Thailand.
Dai-ichi Life Insurance plans to more than double its sales staff in Indonesia from 4,500 to over 9,000 in the next few years.
Demand for life insurance is predicted to grow among Asia’s expanding middle class. More Japanese companies are expected to use domestic sales methods to benefit from this new market.