Small Amount and
Short Term Insurance
Setting-up a Small Amount and Short-Term
Insurance (SASTI) company
Unlike conventional insurance companies, SASTI companies are subject to restrictions in respect of insurance periods, amounts of insurance proceeds, and other coverage conditions.
We offer complete support to set up and operate small amount and short-term insurance (SASTI) companies as a profitable business model. Our support services include consultation, support on formation, and reinsurance arrangement.
Our services for SASTI are targeted
at the following customers
Businesses engaged in
A lease administration company considers operating its own insurance firm to sell its own insurance products to lease customers.
A pet business operator has a
well-established client base and considers selling insurance products in addition to existing services.
Healthcare operating businesses
An enterprise has healthcare expertise and know-how and considers designing and selling its unique insurance products based on specialized skills.
Comparison of regulations
|Insured period||Maximum of 1 year（Maximum of 2 years for Non-life)||No limitation|
|【Death/Severe disability by illness】MaximumJPY3,000,000
【Hospitalization benefits by illness/injury】Maximum JPY 800,000
【Specified Severe Disability Insurance/Death by injury】Maximum JPY 6,000,000
【Non-life Insurance】Maximum JPY 10,000,000
|Annual premium income||Maximum JPY 5,000,000,000||No limitation|
|Minimum Capital Requirement||JPY 10,000,000||JPY 1,000,000,000|
|Entry regulation||Registration at Finance Bureau||Licensed by the
Commissioner of FSA
|Combined Life and Non-life||Possible||Not allowed|
※ Special arrangements due to transitional period measures are not considered.
※ Other limitations exists such as a maximum of JPY 1 billion per contract sum insured.
Covers costs for hospital visits, hospital stays, surgeries, and funeral costs for the pet. Also covers liabilities for damages when the pet injures other persons.
Covers damage to the policyholder's home furniture, liabilities as a tenant, personal liabilities, and repair costs arising due to fire disasters.
Healthcare and nursing care
Covers costs for hospital visits, hospital stays, death (including funeral costs) and residual disabilities resulting from illnesses or injuries. Also covers nursing care costs.
Extra expense insurance
Covers costs for legal consultation, upfront and contingent legal fees and other attorneys' costs. Also covers costs for repairs of devices.
Services for SASTI Set-up
Our full-range services include advice on legislation, administrative registration, business planning, product development and reinsurance arrangement.
After the launch of your insurance business, we can provide advisory services on an ongoing basis if requested.
Applications and approvals for the establishment of a SASTI company
The process to seek approval is important for the formation of a SASTI company. In general, an application for approval of insurance products is filed at the same time, which affects a decision on when to set up a SASTI.
We will provide support in preparing the necessary documents that can fully explain the points at issue and discuss with the finance bureau's officials in charge.
Product development in
collaboration with actuaries
We can design products that fit your intended client base and meet your needs. At the same time, we can formulate a business plan and prepare operation procedures, product summary, policy conditions, and a statement of calculation procedures for insurance premiums (to be drafted by actuaries).
Introducing operation systems for
We can introduce a vendor that can offer a standard package of operating systems containing all basic functions, a semi-custom package or a full-custom system according to your budget and needs.
Most SASTI companies utilize reinsurance to ensure stable operation and as a credit enhancement instrument.
We can support our customers’ reinsurance arrangements with the advantage of our strength backed by our global networks.
Contract administration and
settlement with reinsurers
Since insurers must work with reinsurers on a regular basis for contract administration, payment, and settlement operations, we can assist customers to facilitate such operations. If you ask us to arrange reinsurance, we will perform the needed administrative work, with experienced reinsurers doing it on your behalf.
How it works
Preparation for license application
- Creating a business plan
- Selecting products and preparing for formation
- Selecting insurance specialists
Creating statutory documents* and starting negotiation with the finance bureau
*Application for approval of products, preliminary license application, application for approval of concurrent assignment, notification of major shareholders, business plan, operation procedures, summary of insurance premium calculation, policy conditions, product summary, license application, and so on
From registration to launch
Preparing for the launch of products and creating operation tools after registration*
*Brochures, statement of important matters, contract document formats, operation manual, and the like
*Development of business management systems, interface with outsourcing partners
- Reinsurance settlement
- Development of new insurance products
- Assistance in accounting and period-end settlement operations for insurance business