So-called ‘mini’ insurance policies are becoming more popular in Japan, due to their affordability.
While these insurance products have shorter coverage durations and smaller amounts insured than regular policies, more people are buying mini insurance due to their low premium levels, a report by Jiji Press said.
The increasing demand of this type of insurance has also lead to an increase in companies selling it. As of March, there are 100 companies officially registered with the Small Amount & Short Term Insurance Association of Japan, up from 64 in 2008.
The association said that as of the end of March, there were 7.53 million mini insurance contracts in force, or 10% higher than the same time last year.
Mini insurance policies are subject to certain restrictions, such as a ¥3 million (US$26,800) cap on life insurance benefits. Household article insurance is the most popular type of policy, followed by life and medical insurance.
Another reason for their popularity is that they cover niche risks that are present in daily Japanese life, such as false groping accusations and dementia support. Many policies can also be easily purchased through mobile devices.
