MS&AD Insurance Lags Tokio Marine in Efficiency and Overseas Expansion Has Had Only Patchy Success

Market concentration is relatively high in Japan in property and casualty insurance. Three firms—Tokio Marine, MS&AD Insurance, and Sompo—together have 88% share, and only three others (including AIG, the nonlife unit of an agricultural cooperative insurer, and Sony Assurance) have even 1%. Despite this high concentration, we do not think the three leading firms possess economic moats in Japan as they offer comprehensive nonlife insurance products