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Please make sure you view the key information alongside your search results. This section details information that must be considered before accepting a risk in the chosen country.

Disclaimer: Crystal is provided for information purposes; it does not constitute solicitation of business and is not intended to be a substitute for appropriate professional advice.

Japan** Please see Lloyd's Authorisation for details of Lloyd's licensing status

Pre-placement considerations

Lloyd's authorisation

Insurance 

Assets, people and liabilities situated or arising in the territory have to be insured in Japan by insurers who are both established and licensed in the territory. These can be Japanese or foreign insurers. Lloyd's holds various product licences that permit underwriting members to write insurance through its wholly owned subsidiary. Please see Lloyd's Japan Inc. (LJI).

Open market risks which are located in Japan but controlled outside Japan will require a local policy to be issued. LJI has put in place a simplified process to issue local policies compliant with Japanese regulations. Please see the Global Contracts section below (under 'Reference').

Concessions apply to certain insurance areas which are deemed to be international and cross-border. The law is waived for:

  • Aircraft.
  • Ocean going vessels.
  • Marine/Aviation Cargo.
  • Overseas Travel Packages.

Per article 186 of the Insurance Business Law (Law No. 105 of 1995), if a person wishes to place business with a foreign insurer that is not established or licensed in the territory, permission must be sought from the Japan Financial Services Agency (JFSA) prior to the application for such an insurance contract. Permission will not be granted if the insurance contract meets any of the criteria in Article 186(3). Note that non-life insurance can be written by LJI, which is an established and licensed insurer in the territory.

Reinsurance 

Lloyd's underwriters are permitted to write reinsurance in or from Japan, except certain types of  Kyosai business.

Service Companies

Effective 1 January 2013, managing agents in Japan can access the Lloyd's licence through service companies. Please see here for more details.

The list of product licences can be found here. For further information please contact LJI.

Last updated: 25 Feb 2016

Definition of risk location

Article 186 of the Insurance Business Law of Japan (Law No. 105 of 1995) implies that a Japanese insurance contract is a "contract pertaining to any persons with an address or residence in Japan or property located in Japan, or vessels or aircrafts with Japanese nationality."

[The above is an unofficial English translation of this article.]        

Open market risks which are located in Japan but controlled outside Japan will require a local policy to be issued. LJI has put in place a simplified process to issue local policies compliant with Japanese regulations. Please see the Global Contracts section below (under 'Reference').

For general guidance on identifying the location of a risk please refer to the risk locator.

Last updated: 23 Jul 2015

Compulsory classes

The following classes are compulsory in Japan:

  • Third party liability for motor vehicles (bodily injury).
  • Liability for nuclear risks.
  • Liability for maritime oil pollution - for designated types of vessels.
  • Residential buildings defects liability insurance (cash deposit or insurance policy).
  • Workers' accident compensation for employees in industry and commerce (state scheme). 

 

Last updated: 28 Apr 2015

Routes into Lloyd's

Coverholders

Lloyd's requirements for a coverholder carrying on Japanese business on behalf of a Lloyd's managing agent.

Binding authority held by a Japan based coverholder
Last updated: 28 Sep 2016

click for more detail More detail

Binding authority held by a coverholder outside of Japan
Last updated: 28 Sep 2016

click for more detail More detail

Open market correspondents

Open market correspondents in Japan do not require Lloyd's approval or registration. They must place business with Lloyd's in accordance with all applicable local requirements.  
Last updated: 19 Feb 2014

Intermediary regulation

The Insurance Business Law of Japan (Part III Insurance Solicitation) requires insurance intermediaries to be registered according to their type with the JFSA.
Last updated: 19 Feb 2014

Insurance documentation

Insurance documents

Contract certainty applies to general insurance contracts either entered into by a UK regulated insurer (such as Lloyd’s underwriters) or arranged through a UK regulated broker (such as Lloyd’s brokers based in the UK).

Lloyd's has developed Quality Assurance (QA) checks to help the market comply with this requirement.

Further information on contract certainty can be found on the Market Reform website.

Last updated: 03 Oct 2016


Language of contract

Japanese wordings must be submitted for product licence approval.  Applications can also be made to use wordings in other languages and if approved, policies can be issued in that language.
Last updated: 19 Feb 2014

Choice of law

Insurance

The law governing the contract should be the law of Japan, except for the international/cross-border classes noted above where there is no restriction on governing law and jurisdiction.

Reinsurance

Law and jurisdiction may be agreed between the parties entering the contract. However, care should be taken to ensure that the effects of selecting a law and/or jurisdiction, which is not the same as that of the primary contract, are fully understood.

Please note that if the reinsurance contract is concluded in Japan (with LJI as the contracting party), it must follow the scope of Lloyd's product licence. No such requirement exists if the reinsurance is concluded outside of Japan.
Last updated: 21 Dec 2016

Service of suit

Insurance and Reinsurance

It is not mandatory to include a service of suit clause.

Any appointment made for service of suit is subject to the ultimate discretion of the Japanese courts. The following representative may be nominated:
 
Legal Representative of the Society of Lloyd's in Japan
Mr Iain Ferguson
Lloyd's Japan Inc.
Tokyo Club Building 6F
3-2-6 Kasumigaseki
Chiyoda-ku, Tokyo 100-0013
Japan
Tel: +81 (0)3 5656 6955 Fax: +81 (0)3 5304 8855

 
Last updated: 19 Feb 2014

Lloyd's representation and other contact details

Lloyd's representative

Iain Ferguson
Lloyd's Japan Inc.
Tokyo Club Building 6F
3-2-6 Kasumigaseki
Chiyoda-ku, Tokyo 100-0013
Japan

Tel +81 3 5656 6926
Fax +81 3 5221 2288

Email: iain.ferguson@lloyds.com

Last updated: 19 Feb 2014