Introduction
Insurance is generally regarded as a form of risk management where in it is used to get around against the risk of a conditional loss. It is definite that insurance is a form of an equitable transfer of the risk of a loss. There have been a lot of companies who sell insurance. The insurance rate though is vital for the determination of the amount which is called as the premium which has to be changed for a particular amount of an insurance coverage. The practice of considering and controlling the risk has progressed as a distinct field of study and practice as a risk management (Lynch, 1992).
In some cases, insurance can be visible in a synchronized manner with the appearance of human society. In a particular economy and community such as Japan, it can be seen that insurance largely helps people. As such, Sompo Japan Insurance Incorporation is one of the Japanese’s insurance companies. It ranks second as the largest property insurance company in Japan. Its name, Sompo, depicts the literal meaning of ‘property insurance’. The company though offers a set of financial services that includes life insurance, securities, management of the assets and venture capital business.
Discussion
In retrospect, the first insurance company of Japan in 1887. The company had worked hard in order to establish an awareness of fire insurance and develop offices on the same year that the company was put up. Apparently, as years past by, Sompo Japan acquired the evolution of Taisei Fire and Marine insurance in the year 2002. Insurance in the modern times such as the insurance in a present money economy where in insurance is part of the financial area; the techniques that are used in distributing risk prevailed in Asia, Chinese in particular. This is apparent to the recognition of other countries over the years of evolution and modernism. Accordingly, the international operations of Japan comprise of its offices and subsidiaries in almost 28 countries giving an insurance services and risk management proficiency. The company has opened different offices at various Asia Pacific locations such as in China, Australia, Malaysia and India. In Europe, the company has served the clients coming from the United Kingdom, Belgium, France, Germany, the Netherlands, Spain and Italy (Lynch, 1992).
In Untied States, this insurance company has been operating at different locations though its main office is located in New York City. It conducts property and casualty insurance operations in both United States and Canada. Basically, the insurance companies relates to United States most especially through the health care sense. It had been known that Japan embraced a huge success for over twenty years in providing cancer insurance (Arai, 2001). With the consideration that cancer care for patients in the United States brought hardships for the families in a financial manner, the standard health care insurance is launched in order to lessen the costs of medical products and other necessary expenses. Through the process of treatment, costs are largely seen significant to be addressed. Limitations for the management of care have increased the awareness of consumer and interest of people in the United States. This will make clearing the treatment expenditures that normally require unexpected payments. The marketing campaigns for this perspective are becoming more insistent and the number of insurance policies for cancer increased. In Japan, it is estimated that one-quarter of the whole population has their own cancer insurance where in a ten- year retention rate is anticipated for 75% (Arai, 2001). Consequently, the people meet the expense of a good access to the nonmedical cancer services. Comprehending with the factors that consider the development and success of cancer insurance in Japan supervise the policymakers in assessing the policies for cancer insurance (Yoshikawa and Utsunomiya, 1993) and it prevails more in the United States when they are influenced by the said insurance.
Conclusion
Japanese Insurances primarily caters to the health care services and provides assistance for the patients. This is the main point where in United States adapt to this kind of trend. The concept of health care insurance depicts the awareness and consideration for the benefit of the people. Though there are specific details that should be considered for viewing this matter in a broader sense. As Japanese people are regarded as one of the healthiest population in the world, the life expectancy of its people amazes large countries such as United States and this is seen to be the highest among any other industrialized nation. The health insurance system of Japan is admired by other countries because it is widely accepted by majority of the population. The access to the health care is viewed to be a right as what is stated in Article 25 of the Japanese constitution. Thus, this largely influences the determination of such insurance policies and evolved into various specifications which made other countries to develop the same. Integration of the Japanese insurance to the United States shows the efficacy of the system emerged by Japan which made large countries to progress in the same manner.
References
Arai, Y. (2001). Japan’s new long-term care insurance. Lancet, 357, 1713.
Lynch, M.E. (Ed) (1992). “Health Insurance Terminology,” Health Insurance Association of America.
Yoshikawa, A., & Utsunomiya, O. (1993). Japan’s health insurance system: From cradle to grave. In D. I. Okimoto & A. Yoshikawa (Eds.), Japan’s health system: Efficiency and effectiveness in universal care (pp. 21-44). New York: Faulker & Gray.