The Independent Insurance Agents & Brokers of America has asked the U.S. Trade Representative to help see revisions to Japan's insurance regulation that would give U.S. carriers more access to markets and give the nation's brokers more business opportunities.
In a letter to Susan C. Schwab, U.S. Trade Representative, Robert Rusbuldt, the IIABA's chief executive officer, said the association has become aware of regulatory barriers that limit business development for member brokers in Japan.
Under Japan's rules, captive agencies within large companies control the bulk of commercial lines insurance there. The system has kept U.S. insurers from making inroads into Japan's market, limiting U.S. interests to 5 percent of the entire market.
Regulations, he wrote, require captive agencies to place at least 50 percent of their insurance with outside or independent agents. However, captives formed before April 1996 are exempt from this requirement, allowing them to handle general liability, employers liability, surety, health and other insurance (except fire and auto) of their parent and subsidiaries.
Mr. Rusbuldt asked Ms. Schwab to work to see a revision to this rule to "assist U.S. companies in increasing their business in Japan, which, in turn, would benefit Japanese agents and brokers and consumers."
A spokesman for the U.S. Trade Representative said the office has not yet received the letter and could not comment at this time.
In 2004, the U.S. Trade Representative presented a list of reform recommendations to the Japanese government aimed at helping sustain the nation's return to growth and opening markets to U.S. companies.
Late last year, the U.S. Trade Representative issued a report praising Japan for opening markets to the U.S. companies. Insurance was not among the markets highlighted by the Trade Representative for expansion. The U.S. Trade Representative at the time, Rob Portman, said it was "crucial for Japan to clearly establish a level playing field" in its reform plans.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
