#Japan #Tokyo #Asset Management #Business Leaders #MetLife

Rising Anxiety Among Business Leaders

According to a recent survey conducted by MetLife Life Insurance Company, a staggering 85% of business leaders and executives are experiencing anxiety regarding the future of their companies. The research, which surveyed 500 business executives across Japan, highlights the growing concerns amid continuous changes in economic conditions such as inflation and rising interest rates. Furthermore, 81% of the respondents indicated they are considering various measures for financial preparation to address these concerns.

Key Findings from the Survey

1. Anxiety in Business Management: 85% of respondents reported feeling anxious in their company management.
2. Financial Preparations: 81% are actively preparing or planning to prepare funds in response to their business-related anxieties.
3. Primary Focus Areas for Financial Preparation: The top areas of financial preparation include working capital strategies, retirement funds for executives, and measures for dealing with executive death or long-term care needs.
4. Preferred Financial Preparations: The dominant methods for financial preparation are savings accounts and life insurance policies.
5. Perception of Alternatives: 61% of leaders believe that asset management beyond savings accounts is an effective strategy to combat inflation. Additionally, 56% would consider variable life insurance as a suitable option for addressing inflation, remaining open even without guaranteed minimum returns.

Analyzing Financial Concerns and Preparations

Among the various anxieties that leaders reported, the most significant concerns revolved around operational funding strategies, which both posed the highest level of anxiety at 46% and reflected the most considerable action towards financial preparation at 35%. Meanwhile, perceived risks tied to business succession and inheritance were notable at 39% anxiety but showed a gap in preparedness, with only 18% of leaders actively making financial arrangements in this regard.

Methods of Financial Preparation

The survey indicates a clear split in preparation methods based on the objective. For operational funds, the majority of executives (86%) lean towards saving accounts. In contrast, retirement funds primarily rely on life insurance (70%), with similar reliance observed for death and long-term care, where 77% choose life insurance. This distinction highlights an adaptation of strategies to fit specific financial needs as leaders navigate an increasingly uncertain economic landscape.

Attitude Towards Asset Management and Investments

The survey also sheds light on the mindset of executives regarding asset management amid inflationary conditions. A substantial 61% of business leaders view asset management, aside from savings accounts, as a viable method during inflationary periods. Notably, younger executives displayed a more favorable attitude towards investment. Additionally, more than half of the respondents appreciated the attributes of variable life insurance, which they found advantageous for combating inflation, showcasing a widening array of options for financial preparedness.

Conclusion

This comprehensive survey by MetLife emphasizes the pressing anxiety felt by business leaders regarding their companies' futures, compounded by economic factors like inflation. As leaders seek diverse and effective ways to safeguard their assets, this pivotal research highlights the growing importance of robust financial strategies that go beyond traditional methods. With evolving perspectives on financial preparedness, companies may very well find new paths to sustainability in an unpredictable environment.

About MetLife Life Insurance

Founded in 1973, MetLife Life Insurance Company was the first foreign-affiliated life insurance provider in Japan. As a part of the globally recognized MetLife group, it offers dedicated service to customers across various sales channels, ensuring the provision of innovative products that address a wide range of risks for both individuals and corporations. For more information, please visit www.metlife.co.jp.