- 2019.10.28
justInCase, Inc. (CEO: Kazuya Hata, “justInCase”) is developing Japan’s first P2P cancer insurance named “Warkan Hoken”, which was successfully admitted to Regulatory Sandbox from the Government of Japan. In order to refine and enhance the product, we conducted a survey of 100 respondents (male & female) aged between 20s and 60s in October 2019 to collect their thoughts and opinions on “Warikan Hoken”.
Key Takeaways
- About 50% of respondents do not have any cancer insurance
- Overall, including those who own cancer insurance, there are about 40% of respondents interested in joining “Warikan Hoken”
- Among those who are interested in joining “Warikan Hoken”, their generation ranges from 20s to 40s, about 60% of them’s annual income being less than ¥5 million
What “Warikan Hoken” attracts you?
Regarding the motives to join “Warikan Hoken”, here are some actual responses collected.
Addressing Concerns over “Warikan Hoken”
Regarding the concerns over “Warikan Hoken” raised in the survey, our comments are as follows:
Q1: If it happens to have a large number of people who have cancer, will the premium become very high and no longer affordable?
justInCase：There will be a maximum amount set to the premium subject to age group. If the shared premium exceeds the maximum amount, justInCase will bear the difference. In a certain month, no matter how many people who get cancer, for the insured aged between 20 and 39, they are not required to pay more than ¥500 (subject to change).
Q2: When the number of members increases, the number of people who get cancer also increases. In this case, will the shared premium be more expensive as well?
justInCase：Assuming the incidence rate remains constant, even if the number of members increases, the shared premium will remain the same. Besides, when there are an increasing number of members, we will lower the management fees, leading to a lower premium which is the sum of shared insurance payment and management fees.
Implications & Outlook
In this survey, it was found that many people in need of insurance coverage are looking for low premium. In addition, it was found that sharing the payment of insurance benefits for those who have cancer among members is positively regarded as the spirit of mutual support. The concerns raised in the survey also indicated that in Japan, there is still little understanding of P2P insurance, yet in such a situation, 40% of the respondents show interest in joining “Warikan Hoken”.
In the future, to return insurance back to its origin, justInCase aims to put P2P mechanism in practice, in order to provide affordable cancer insurance and promote the culture of helping one another.
About “Warikan Hoken”
“Warikan Hoken” is the unofficial name of justInCase’s P2P cancer insurance. Members are not required to pay any premiums to join. The insurance payment for those who get cancer will be shared among members. For further details, please see the following pages:
Press Release: justInCase’s Sandbox Admission to Test P2P insurance in Japan
Product Page: https://justincase.jp/p2p
About justInCase, Inc.
Founded in 2016 by Kazy Hata, CEO, who had about 15-year insurance-related work experience as an actuary. As a small-amount short-term insurer, we aim to make evolutionary changes in the insurance industry with the use of technology. Using machine learning and insurance APIs, we envision to develop insurance products that are yet to exist as well as selling insurance in a different way. (https://justincase.jp/)
About justInCaseTechnologies, Inc.
Founded in 2019. A IT service provider that develops and provides technology services related to insurance and financial services for justInCase, Inc. and other insurance companies, as well as business partners. (https://justincase-tech.com/)
For any inquiries,
Contact: pr@justincase.jp (Elaine Tung)
Location: 1-6-1 Chiyoda Otemachi, Tokyo