2025 SOA ImpACT Conference:Session 6B: Interest Rate Trends in Japan and Economic Value-based Solvency Regulations-11.05.25 Recording

In this session, IAJ (the Institute of Actuaries of Japan) will deep dive and explore the trends in interest rates in Japan and delve into actions through economic value-based accounting standards and solvency regulation. We will review this in comparison with some other countries. With Japanese government bond interest rates rising, Japanese insurance companies need to prepare for the regulation which will be implemented in March 2026. In anticipation of this, some companies have purchased long-term bonds and are considering developing products to reduce interest rate risk in preparation for the new regulation. In addition, private companies have also begun reviewing their pension schemes in response to the evolving interest rate environment. The preparation for these market changes and new regulations is beneficial for actuaries working in similar environments. By the end of the session, attendees will be able to have a clear understanding of what they should do with market and regulatory changes.