Executive summary Japan is moving to an economic value based solvency regime (J-ICS / ESR) aligned with the IAIS Insurance Capital Standard, with first required reporting for fiscal years ending 31 March 2026. Assets and liabilities will be valued at current market rates and capital requirements set to withstand extreme stress scenarios, making solvency ratios far more sensitive to interest rates, lapses and ALM mismatches, particularly for legacy high guarantee books.