Japan’s travel insurance market has a problem that sits squarely in the broker’s line of sight: the travellers spending the most are among the least likely to be covered.
New data from the Allianz Global Travel Confidence Index 2026 found that just 32% of Japanese consumers plan to travel in the coming holiday season, the lowest figure among all five markets surveyed. Among those who do intend to travel, 48% say they plan to spend more on luxury experiences, the highest proportion recorded across any market in the study.
Only 42% of Japanese travellers say they already hold travel insurance or are likely to buy cover for their next trip. Some 40% say they have no intention of purchasing it at all.
The survey, based on fieldwork conducted by Ipsos between September 25 and October 9, 2026, among 2,001 Japanese adults, found that risk awareness is high but it is not translating into purchase. Fifty nine per cent (59%) of respondents cited extreme weather events as a leading concern, 53% named public health risks, and a further 53% highlighted travel delays and cancellations. Sixty one per cent (61%) said environmental and climate-related risks factor into their destination choices. Risk awareness and purchase intent are moving in opposite directions.
Where consumers are acquiring travel insurance matters as much as how many are buying it. An earlier Allianz Partners survey of Japanese travellers – the Allianz Partners Travel Index 2025, conducted by Kantar in early 2025 and the most recently available data on this specific question – found that more than half of Japanese travellers who do purchase cover access it through credit card perks or directly through travel booking websites.
That channel dynamic is commercially significant for brokers and intermediaries. Credit card-bundled cover typically carries strict activation conditions and coverage caps that may be insufficient for a traveller booking premium, non-refundable itineraries – the precise type of booking that 48% of Japanese travellers say they are now making. A consumer who books a festival trip, a wellness retreat, or an event-led holiday believing their credit card provides adequate protection may be meaningfully underinsured, without being aware of the gap.
The General Insurance Association of Japan (GIAJ), in statements issued through 2025 and 2026 as part of its broader reform agenda, has identified limited consumer awareness of insurance coverage as a standing challenge for the non-life sector. Brokers and intermediaries are among the channels through which that awareness gap can be addressed directly.
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Japan’s outbound volumes are still recovering from their pandemic-era collapse. According to the JTB Outbound Tourism Report 2026, published in August 2026, the departure rate in 2025 – the ratio of outbound travellers to the total population – stood at just 12%, with 14.73 million trips, still down 26.6% on 2019 figures. The International Air Transport Association (IATA) noted in May 2026 that the persistently weak yen has suppressed outbound demand while simultaneously driving a surge in inbound visitor numbers to Japan.
Fewer trips at higher per-trip cost creates a specific pressure point for the market. The insurable value per journey is rising while insured volume is not keeping pace.
The survey found that 84% of Japanese respondents still regard an annual holiday as important, even as financial pressures shape how they plan. Some 76% expressed concern about rising travel costs, 65% said they were reducing non-essential spending in order to afford a holiday, and 46% plan to scale back their travel plans.
Tomokazu Kaneko, managing director of Allianz Partners Japan in Tokyo, said in a statement accompanying the survey: “The findings show that Japanese travellers are becoming increasingly selective rather than simply travelling less. While overall travel intent remains subdued, those who do take holidays are looking for richer, more meaningful and often more premium experiences. At the same time, travellers are very aware of the potential impact of extreme weather, travel disruptions and other unexpected events.”
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The types of bookings driving spending are relevant to what adequate cover should look like. Concerts, festivals, and entertainment events were cited by 36% of travellers, event-led travel by 35%, spa and wellness breaks by 30%, and sporting events by 25%. These are bookings defined by advance purchase, non-refundable components, and time-sensitive itineraries – the exact profile for which cancellation and disruption cover exists.
According to the Allianz index, 67% of respondents said more affordable pricing would encourage them to buy travel insurance. Among those who do purchase it, peace of mind and security (81%), protection against unforeseen disruptions (80%), and cover for baggage loss (74%) were the leading motivations – all addressable through existing products already in the market.
The 47% of respondents who said they had used or planned to use artificial intelligence (AI) tools to plan their trips introduces a further distribution dimension. If the research and booking process is shifting toward AI-assisted platforms, the point at which insurance enters the consumer’s decision process is changing. For intermediaries considering how to position standalone travel products in the Japan market, that shift represents both a challenge to current distribution models and a channel opening that has yet to be fully occupied.
