Hidaki Nagashima, President of Meiji Yasuda Life Insurance, revealed in an interview with Asahi Shimbun that the company's sales, represented by group insurance premiums, are projected to reach a significant 5 trillion yen by fiscal year 2026. This forecast reflects an increase of approximately 1.6 trillion yen compared to the 2024 fiscal year, marking nearly a 50% rise. The anticipated increase is attributed to a shift towards a world of rising interest rates, which is expected to make saving-type insurance more marketable. Nagashima stated that the company is determined to take on this challenging goal.

The optimistic outlook is primarily fueled by the increase in interest rates, as the Bank of Japan is gradually raising rates, leading to potential increases in promised returns (scheduled interest rates) for policyholders. This scenario provides a favorable environment for the sale of saving-type insurance products, such as whole life and endowment insurance, where scheduled interest rates are critical. However, uncertainty lingers around possible additional rate hikes, influenced by Prime Minister Sanae Takaichi’s inclination towards monetary easing and concerns over economic slowdown amid escalating tensions in the Middle East.

Despite these uncertainties, Nagashima maintains that his fundamental assumption of two rate hikes in fiscal year 2026 remains unchanged. He notes that Japan is still in the process of normalizing interest rates, with the next rate hikes expected between April and July. Currently, the policy interest rate stands at approximately 0.75%, with predictions that it may ultimately rise to around 1.5 to 2.0% in the long term.