A surge of Japanese investment in the United States is set to impact not just infrastructure and manufacturing but also the insurance market that supports these sectors. Kenyu Okuda, president and CEO of Tokio Marine America, shared insights on how this influx could bring new risks for insurers and boost premium growth.
In July 2025, the U.S. and Japan finalized a trade and investment agreement. Japan agreed to invest up to $550 billion in the U.S. in exchange for lower American tariffs on Japanese goods. This deal covers various projects that will need insurance coverage for property, liability, workers’ compensation, and more, Okuda explained.
Okuda emphasized that much of the investment is expected to come through Japanese companies already established in the U.S., including manufacturers and retailers. These firms face challenges like political and economic uncertainties, and natural disasters remain a major concern. Events such as California wildfires and severe storms highlight ongoing risks, with newer threats like floods and tornadoes changing how insurers assess exposure.
He noted that, while the industry has long focused on hurricanes and earthquakes, recent years have shown that other natural catastrophes are becoming just as crucial. Okuda stressed the importance of closing protection gaps to help society become more resilient and minimize disruption for communities.
Despite these challenges, Okuda remains optimistic about the ability of multinational companies to adapt. He acknowledged fluctuations and uncertainties in the market but said that many firms have successfully adjusted to changing conditions.
Tokio Marine America itself is marking a milestone this year—50 years since it formally started operations in the U.S., although the broader group has been active here since 1880. Over the past twenty years, the company has grown through acquisitions like Philadelphia Insurance Companies, Tokio Marine HCC, PURE Insurance, and Delphi Financial Group. Tokio Marine America handles standard commercial lines while working closely with sister companies on specialty coverages such as directors and officers liability, reps and warranties, and excess workers’ compensation.
Okuda took on the CEO role in July 2025 after serving as chief of staff to Tokio Marine Holdings’ group CEO. He described the current market as shifting towards a softer cycle after several strong years. Looking ahead, the company is preparing a midterm plan for 2027 to 2029. Okuda’s goal is to keep the company competitive while delivering steady, profitable growth through changing market conditions.
Reflecting on the company’s long history, Okuda said they are proud of their track record and remain committed to serving their Japanese clients. He also highlighted the importance of teamwork with their sister companies in the U.S. to maximize group strengths.
With large Japanese investments flowing into the U.S. and ongoing natural catastrophe risks, Tokio Marine America stands ready to support its clients and adapt to new challenges in the insurance landscape.