Insurers’ migration into non-insurance services poised to accelerate

in partnership with

NRI - Nomura Research Institute

Logo of NRI - Nomura Research Institute

Founded in 1965, Nomura Research Institute (NRI) is a leading global provider of system solutions and...

View more
13/12/2022 Article
profile picture of Takashi Sasaki

Takashi Sasaki


General Manager, Insurance Integration Design Department

Insurance-like services gaining prevalence

The lines of demarcation around insurance are becoming blurred.

Tokyo Gas offers a protection plan under which it promises to promptly repair gas appliances whenever they break down for a monthly fee of ¥500 (or about $3.40). Two hundred thousand customers have already signed up for the plan. Tokyo Gas is now expanding coverage to include air-conditioners and plumbing. Tokyo Electric Power offers a similar protection plan for ¥200 per month. It covers gas hot water heaters and induction stoves among other appliances. The two protection plans differ in one important respect, however. Namely, Tokyo Gas administers its protection plan itself whereas Tokyo Electric Power's plan is an embedded personal property insurance policy) underwritten by Mitsui Sumitomo Insurance.

Japan’s Insurance Business Act defines an insurance business as one that collects insurance premiums in exchange for agreeing to compensate insured parties for losses due to certain chance events. Under this definition, insurance businesses include those that provide recompense in the form of services instead of money. Clarity surrounding what types of services do not meet the statutory definition of an insurance business has been increasing in recent years by virtue of so-called mini (i.e., low-value, short-term) insurance policies’ legalization in Japan and a growing corpus of No Action Letters issued by the FSA. This trend is ushering in an era where insurers find themselves competing with nonfinancial companies, like Tokyo Gas, that previously would not have been on their radar as rivals.

Want to keep reading?

Become a Qorus member to get access to all our insights

Related news & insights

30/11/2023 Interview

Growth strategies: ESG, AI and corporate governance in a rapidly evolving world

Chez FinTech is a specialized advisory, supporting boards and C-suites in the fast-changing digital world and highly regulated turbulent markets...

30/11/2023 News

MAPFRE and Cyberwrite: Transforming SME cyber protection with AI

In a transformative partnership, MAPFRE, a leading Spanish insurer, has teamed up with Cyberwrite to enhance cybersecurity for small and...

29/11/2023 Interview

Exploring the future of financial institutions in the mobility ecosystem: Ageas Group Portugal

Katrien Buys, Director of Strategy, Innovation & Sustainability at Ageas Group Portugal, shares insights on the future of financial institutions...

29/11/2023 News

Sgcarmart & KINTO Singapore revolutionize used car market with innovative leasing option

Sgcarmart, Singapore's leading car platform, has partnered with KINTO Singapore to introduce a game-changing 'Leasing as an Option' service for...

29/11/2023 News

Matmut teams up with Earnix for advanced pricing strategies

Matmut, a key player in the French insurance landscape, has entered into a strategic partnership with Earnix, a global provider...

Digital Reinvention
28/11/2023 Study

Innovation Radar: Reinvention Awards Asia Pacific winners 2023

Discover the most innovative projects from banks and insurance companies in the Asia Pacific region.

28/11/2023 News

Access Bank's global expansion: Asian debut set for Q1 2024

Access Bank, the pan-African banking giant headquartered in Lagos, is on track to launch its inaugural full banking service in...

Digital Reinvention
27/11/2023 News

HappyNest's gold win: BNP Paribas Fortis rewriting the future of banking at Qorus-Accenture Banking Innovation Awards

In a momentous achievement, BNP Paribas Fortis secured the coveted gold award at the Qorus-Accenture Banking Innovation Awards 2023. The...