As insurance regulators aim to reduce risk in financial markets, they are raising the bar on better risk management, governance and transparency in reporting. Emerging regulations are driving significant global reforms in everything from balance sheets and capital adequacy to consumer protection. In Japan, where the size of the insurance market is considerable, regulators are encouraging insurers to expand their enterprise risk management (ERM) frameworks. In this updated report, we discuss key market and regulatory trends, the current state of play in Japan and the impact beyond the requirements on products, internal models, risk calculation and measurement. There is a significant opportunity for insurers in Japan to develop and refine sophisticated ERM systems as an integral part of their business strategies and management practices.