Japan's aging population: a testing ground for insurers

With its rapidly aging population, Japan is becoming a testing ground for major insurance groups such as AXA.

This demographic shift offers valuable insights for preparing the future of insurance in Europe, where population aging is accelerating.

According to the National Institute of Population and Social Security Research, 29% of Japan’s population is aged 65 or older, a figure expected to rise to 36% by 2045.

Beyond aging, the market is also facing a population decline, where Japan lost around 900 000 people in 2024 alone. This downward trend is projected to continue over the next 40 years.

These dynamics are driving up healthcare costs and pushing insurers to develop products tailored to the needs of an older customer base.

According to Christophe Avenel, Deputy CEO of AXA Japan, an aging population is more likely to present multiple pre-existing medical conditions. Overly restrictive underwriting criteria therefore significantly limit the pool of potential policyholders.

Against this backdrop, AXA is increasingly shifting toward less restrictive health insurance policies. The French insurer is considering raising the maximum eligibility age for health coverage to 85, or even 99.