Insurers in Japan now offer products that pay out to companies if employees go on parental leave, eyeing growing demand for such services from employers grappling with the impact of more people, particularly men, taking time off.
Two of the country’s largest property and casualty insurers, Sompo Holdings and Tokio Marine Holdings, recently started selling such services. Companies that meet certain conditions set by the insurers are eligible for compensation related to hiring costs incurred should an employee take childcare leave, such as placing recruitment ads.
The number of men who take paternity leave in Japan remains low compared to other developed countries with similar benefits, but the number who do has been steadily growing amid a government push. Data from the Ministry of Health, Labor and Welfare show that 14% of fathers took paternity leave in the last fiscal year ended March 31, up from just 3% in 2016. Men are entitled to up to a year of parental leave in Japan.