Tsutsui Yoshinobu, former chairman of Nippon Life Insurance, has been appointed as the new chair of Keidanren, Japan’s foremost business lobbying organization. His appointment, effective May 29, breaks tradition as he is the first leader from a financial institution rather than a manufacturing background to head the influential group.
A Shift from Manufacturing to Finance Leadership
Keidanren has historically been led by executives from listed manufacturing giants. Tsutsui’s leadership marks a departure from this pattern, reflecting a new era for the organization. Notably, Tsutsui comes from Nippon Life, a mutual insurance company where policyholders are members instead of shareholders, adding a distinctive perspective to the business lobby.
Tsutsui’s corporate tenure includes serving as president of Nippon Life in 2011, where he orchestrated the acquisition of Mitsui Life Insurance in 2015, now known as Taiju Life. He was promoted to chairman in 2018 and joined Keidanren’s executive board as vice chair in 2023. Earlier this year, he was appointed head of the government-led GX Acceleration Agency, focusing on Japan’s energy transition and decarbonization goals.
Challenges in Japan’s Life Insurance Sector
Tsutsui assumes his new role amid significant challenges for Japan’s life insurers. Rising domestic interest rates have caused steep declines in the value of long-term government bonds held by insurers. For the fiscal year ending March 2025, Nippon Life reported unrealized losses of approximately ¥3.6 trillion (around US$25 billion), with additional realized losses of ¥500 billion from bond sales. Meiji Yasuda Life Insurance also saw its paper losses surge to about ¥1.386 trillion (US$9.7 billion) from ¥161.4 billion the previous year.
These mounting losses have forced insurers to reconsider their investment strategies, especially their reliance on long-duration government bonds, which have become more volatile amid rising interest rates.
Portfolio Adjustments Underway
Executives from both Nippon Life and Meiji Yasuda have signaled shifts in asset allocation to better manage risks. Nippon Life plans to reduce its government bond purchases in the current fiscal year to stabilize its asset profile amid fluctuating market conditions. Meiji Yasuda is conducting a similar review and considering reallocations across fixed-income and alternative assets to enhance portfolio resilience.
Related topic:
Korean Pet Insurance Comparison Platform Suspended Amid Insurer Withdrawals
APAC Insurance CROs Lag Global Peers in Operational Risk Preparedness, Survey Finds
