The Japan Financial Services Agency’s (JFSA) announcement on April 8 relates to a public consultation on a proposed partial amendment to the Comprehensive Guidelines for Supervision of Insurance Companies. Pacific Life Re (PL Re) views this amendment as part of a broader regulatory initiative aimed at encouraging robust risk management practices among Japanese insurers, particularly in the context of utilising asset intensive reinsurance (AIR).  

While the final form of the guidelines has yet to be confirmed, we welcome this regulatory development. We see it as an important step that is expected to support the sound and sustainable evolution of the AIR market and, by extension, the broader savings and retirement markets in Japan.  

The JFSA’s proposals refer to areas such as incorporating AIR related stress scenarios into stress testing, enhanced monitoring and analysis of reinsurers and collateral assets, and strengthening governance frameworks that reflect AIR related risks.    

We believe these measures will encourage sound AIR practices across the market and promote greater transparency, discipline, and resilience. Having expanded significantly to date, the Japanese AIR market is now entering a new phase in which greater emphasis will be placed on the quality of AIR and accountability in its implementation, leading to increased transactions between cedants and reinsurers with strong risk management practices and more sustainable long‑term growth. 

By partnering with leading life insurers in Japan and supporting them in achieving their strategic objectives, PL Re has played an active role in the healthy growth of Japan’s AIR market to date. Backed by Pacific Life, a mutual company with nearly 160 years of proven financial strength, stability, and reliability, we are committed to continuing to act as a trusted, long‑term partner to the Japanese insurance industry.