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What is the strategy of life insurers when Japan’s population has declined for 10 consecutive years?

SPIL
Nepal Life

Kathmandu. Japan’s population is declining. According to official figures, the number of births in Japan fell for the 10th consecutive year in 2025.

Preliminary data from the Japanese health ministry shows 705,809 births in 2025. This is 2.1 percent less than in 2024. This data includes the birth of Japanese citizens in Japan, the birth of foreigners in Japan, and the birth of Japanese citizens abroad.

Esewa
Crest

Meanwhile, the number of couples married in 2025 is 505,656. It was 1.1 percent higher than the previous year. The number of divorces fell by 3.7 percent to 182,969. Since 2024, there have been 1,605,654 deaths. This is 13,030 or 0.8 percent less than the previous year.

Japan has one of the lowest birth rates in the world. This is causing a lot of problems, including labor shortages, rising social security costs, and people of low working age who pay taxes. This is leading to Japan’s huge debt burden. It already has the highest debt-to-income ratio among major economies.

In addition, Japan’s aging population has been increasing annually since 1950 due to falling fertility and low birth rates. This increasing number of elderly people creates numerous social problems, especially for the country’s healthcare system.

Last year, statistics showed that there were about 100,000 people in Japan who were 100 years old or older. About 90 percent of them were women.

It is estimated that by 2070, Japan’s population over the age of 65 will make up 40 percent of its population. If current trends continue, Japan’s population of 124 million is expected to fall to 87 million by 2070.

The declining population is also adversely affecting rural communities. The number of abandoned homes in Japan now stands at nearly 4 million. According to a recent study, more than 40 percent of municipalities are at risk of extinction.

The life insurance market is also shrinking due to Japan’s declining population. At this juncture, life insurance companies are increasingly focusing on related areas such as nursing care and health support as part of their growth strategies.

There are many reasons for the declining birth rate. These include the rising cost of living, an increase in the number of women in education and work, and greater access to contraception. As a result, women are choosing to have fewer children. In addition, it has been observed that couples lack the confidence in the future to make important long-term commitments such as marriage and having children. –Agency

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