Ailing Japanese life insurers have had a lifeline thrown to them by the Government. It has agreed to allow them to lower the returns they guarantee to policyholders when investment returns were much higher than they are now. After 10 years of an economic standstill, seven life insurers have failed.

While the Japanese Government move is typically tentative – plenty of discussions are likely before agreement – the move is seen as a necessary step to keep even more life insurers from going under.