Compensation for Cleaning and Rent After Death... 'Solitary Death Insurance' Spreads in Japan [Mwonil Issyu]

New Insurance Emerges in the Mass Death Society
More Landlords Refuse Tenants Out of Fear of Solitary Death
Local Governments Step Up Support

Editor's NoteThis is a weekly report from our international correspondent based in Tokyo, sharing observations and stories from Japan. Updated every Saturday.

In Japan, where the era of low birth rates and an aging population began earlier than in Korea, the current society is now referred to as a "tashi" (mass death) society. In short, it means a society where a large number of people are dying.

According to demographic statistics from Japan's Ministry of Health, Labour and Welfare, the annual number of deaths surpassed 1.5 million in 2022, marking the highest figure since records began. In 2024, it exceeded 1.6 million, overtaking the annual death toll of 1.49 million recorded during the Spanish flu pandemic in 1918.

During the Spanish flu era, infant mortality was high, but now, the majority of deaths are among the elderly. Since 2020, more than 90% of annual deaths in Japan have been among people aged 65 or older, according to surveys.

In a mass death society, there is increasing concern over how people will face the end of their lives. This week, the Nikkei reported that both the number of enrollments in and payouts from "solitary death insurance" are rising. Solitary death insurance is a policy that compensates landlords for special cleaning fees, personal belongings disposal, and rental income loss when a tenant dies alone.

Advertisement for solitary death insurance brokerage. It is promoted as a safety device that protects the "muyeon society" (a society where ties are severed). Ariaru.

There are two types of policies: one where the landlord enrolls, and another where the tenant enrolls. For landlords, the monthly premium is just a few thousand won, while tenants pay less than 200,000 won for a two-year contract.

According to a survey by the Japan Small Amount and Short-Term Insurance Association, there were 2,220 insurance payouts from March 2023 to March 2024. That's a fourfold increase compared to a decade ago.

The Nikkei pointed out that the expansion of insurance coverage is largely due to the burden on landlords. According to the association's survey, when a tenant dies alone, the average financial loss—including restoration costs, removal of remaining items, and rental loss due to vacancy—reaches 1,125,510 yen (about 1,064,000 won).

If the deceased tenant has no relatives, the landlord must bear the entire cost. With rising prices and labor costs, expenses for restoration are also increasing. As a result, more landlords are avoiding renting to elderly people living alone, creating a new problem.

This has prompted local governments to actively introduce such insurance policies. Since 2022, Nagoya City has implemented a solitary death insurance program at the municipal level, paying the landlord's insurance premium when a senior citizen moves in alone. Similar systems are in place in Tokyo's Chiyoda, Minato, and Shinagawa wards. In Shinjuku and Toshima wards, part of the premium is subsidized.

The Nikkei estimates that the number of seniors living alone in Japan will exceed 10 million by 2040. The newspaper emphasized, "Measures must be put in place to prevent the elderly from becoming isolated from society." The question of "how to leave" is no longer just a personal issue, but a challenge that society as a whole must address.

This Week's Japan Economy & Industry Briefing

▶Potato Chip Packaging Changes Due to Middle East Tensions
Japan's beloved potato chip "Calbee Potato Chips" will change its packaging to black and white starting May 25. On May 12, Calbee announced it would switch the packaging of 14 products, including its potato chips, to black and white. This move is a result of the closure of the Strait of Hormuz caused by the U.S. and Israeli invasion of Iran, which disrupted the supply of naphtha-based ink. The issue has become so significant that the Ministry of Agriculture, Forestry and Fisheries visited the company to hear about the situation firsthand.

▶Nintendo Shares Plunge After 'Switch 2' Launch
On May 11, shares of Nintendo in Japan plunged. This appears to be due to the company's announcement over the previous weekend of its annual consolidated financial results for last year and a price hike for the "Nintendo Switch 2" game console. The Nikkei analyzed that, as earnings fell short of market expectations and concerns grew over slower Switch 2 sales due to the price increase, selling pressure intensified.

This content was produced with the assistance of AI translation services.