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Short-term insurance for activities such as sports, leisure, and day trips is picking up popularity in Japan.
These policies, also known as “on-demand insurance”, are valid for short periods and can be purchased digitally through smartphones. Their development comes in response to the changing lifestyles of consumers, according to a report by Mainichi Japan.
As consumers become more budget conscious, many begin to prefer insurance policies that offer coverage only when needed, as opposed to policies that last for longer periods of time, such as a year or more.
Tokio Marine & Nichido Fire Insurance Co. began selling one-day car insurance in 2012 and sold 6.5 million such policies from then until the end of January 2018. One-day car insurance policies are targeted at people who plan to drive a car borrowed from a family member or friend.
A premium of ¥500 (US$4.70) will cover up to ¥100,000 (US$934) in case of injuries to the policyholder, and up to ¥300,000 (US$2,800) in case of injuries to others and damage to property.
In April, Mitsui Sumitomo Insurance Co. will begin offering one-day leisure insurance, which is valid for 24 hours and covers risks associated with outdoor activities such as golf or mountain climbing. The product can be bought easily via smartphones, with the premium added on to the policyholder’s monthly phone bill.
“We are proactively pressing ahead with the development of goods and services that can respond to diversifying needs,” a representative of Mitsui Sumitomo Insurance told Mainichi Japan.
