The Independent Insurance Agents & Brokers of America has asked the U.S. Trade Representative to help see revisions to Japan's insurance regulation that would give U.S. carriers more access to markets and give the nation's brokers more business opportunities.

In a letter to Susan C. Schwab, U.S. Trade Representative, Robert Rusbuldt, the IIABA's chief executive officer, said the association has become aware of regulatory barriers that limit business development for member brokers in Japan.

Under Japan's rules, captive agencies within large companies control the bulk of commercial lines insurance there. The system has kept U.S. insurers from making inroads into Japan's market, limiting U.S. interests to 5 percent of the entire market.

Regulations, he wrote, require captive agencies to place at least 50 percent of their insurance with outside or independent agents. However, captives formed before April 1996 are exempt from this requirement, allowing them to handle general liability, employers liability, surety, health and other insurance (except fire and auto) of their parent and subsidiaries.

Mr. Rusbuldt asked Ms. Schwab to work to see a revision to this rule to "assist U.S. companies in increasing their business in Japan, which, in turn, would benefit Japanese agents and brokers and consumers."

A spokesman for the U.S. Trade Representative said the office has not yet received the letter and could not comment at this time.

In 2004, the U.S. Trade Representative presented a list of reform recommendations to the Japanese government aimed at helping sustain the nation's return to growth and opening markets to U.S. companies.

Late last year, the U.S. Trade Representative issued a report praising Japan for opening markets to the U.S. companies. Insurance was not among the markets highlighted by the Trade Representative for expansion. The U.S. Trade Representative at the time, Rob Portman, said it was "crucial for Japan to clearly establish a level playing field" in its reform plans.

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IIABA Asks Trade Representative For Help For Japan Brokers

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