Aon to Enter Japan's $100 Billion Insurance Market

The UK-based insurance broker Aon plc has announced plans to enter Japan's domestic corporate insurance market. This move follows a major regulatory change by Japan's Financial Services Agency (FSA). For decades, foreign brokers were largely blocked from operating independently in Japan. They needed a local partner with a controlling stake. New rules now allow wholly foreign-owned subsidiaries. Aon will establish a new local entity, Aon Japan. It will begin offering risk advisory and insurance services to large corporate clients. The company aims to start operations by the end of 2024. The Japanese corporate insurance market is worth an estimated $100 billion. It has been dominated by domestic firms. Industry experts predict Aon's entry will increase competition. This could lead to more options and innovative services for Japanese companies. A senior Aon executive stated the change recognizes the global nature of modern business risks. The company believes its international expertise will benefit Japanese clients facing complex challenges.