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Captive insurance industry remains underutilized: A.M. Best

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A.M. Best Co. Inc. has said that Japan's captive insurance industry remains underutilized despite the country having one of the largest commercial insurance markets in the world, Asia Insurance Review reported. The low utilization is partly due to historically strong relationships with major domestic insurers, which have been the largest shareholders of the industrial organizations. However, there has been a continuous reduction in business-related stock holdings by major Japanese insurers in recent years. The decline indicates that there may be additional Japanese captives in the future.

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