Japan's financial watchdog has accelerated its routine inspection of major life insurance firms, focusing on the mounting unrealized losses piling up in their investment portfolios amid the ongoing interest rate environment. As borrowing costs climb higher, these traditional financial players are grappling with significant paper losses on their fixed-income holdings—a situation that mirrors broader concerns about how rising rates reshape asset valuations across the board. The regulator's move signals heightened scrutiny on institutional balance sheets during a period of monetary tightening.