System reforms causing shifts in new insurance plans

Cash and deposits account for more than 50 percent of the financial assets held by Japanese citizens. This high ratio sets Japan apart from other countries. However, reforms of the medical system are gradually changing this pattern. Japan’s health insurance system covers the entire population. All Japanese citizens receive medical insurance coverage under this system. Public expenses, patient disbursements, and health insurance contributions cover medical bills. However, due to the rapid aging of the population, medical expenses are currently growing at a remarkable pace. The Japanese government has begun raising the share of medical service costs that must be borne by patients and taking other steps to reform the health insurance system and respond to sharp cost increases. These actions have led to a rapid increase in the number of Japanese citizens seeking and obtaining supplemental private-sector insurance policies.
The Japanese government is also reforming its public pension program. For example, the government has increased the public pension eligibility age from 60 to 65. Both health insurance and public pensions are being reformed in response to the aging of the population. In addition, the increasing awareness that preparation for old age is an individual responsibility is leading to growth in the private pension insurance market.