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1. Ensuring the satisfaction of affected customers
Life insurers’ mission to secure people’s livelihoods entails, first and foremost, ensuring the payment of insurance money and benefits out of the premiums that customers have deposited “just in case.”
Based on feedback from customers affected by this unprecedented catastrophe, we have introduced various measures to ensure that payments are made smoothly, including the development of industry-wide payment guidelines, the establishment of the Center for Searching for Life Insurance Contracts in Disaster Areas, the development of an industry-shared database to identify claimable policies, and special arrangements for missing people. We will continue to improve these measures in cooperation with juridical, administrative and other competent authorities.
We have also extended the grace period for paying premiums for those affected customers who cannot afford to pay premiums due to financial difficulties, and we will improve our advisory activities, including on the modification of coverage.
I also believe that this disaster has highlighted our critical duty to reiterate to the whole population the importance of life insurance as a means of planning for the future.
2. Helping to build a reliable life protection system
The sense of security that comes from financial protection for family and personal life will provide a foundation for reconstruction in the years ahead. By removing concerns about the future, it will also help trigger a virtuous cycle: preventing a loss of consumer confidence, revitalizing the economy, and increasing employment and tax revenues. Although the system of public and mutual help has played a major part in the Japanese life protection system, in light of the declining birth-rate, population ageing and constraints on government budget, this mechanism will inevitably change. Although the public social security system will continue to play a key role, the private sector should be urged to provide diverse services in the areas of pensions, medical care and nursing care, assisted by the national and local governments, as the focus shifts towards self-help. As Japan continues to build a reliable life protection system in which the private sector complements the public system, the LIAJ is committed to helping to create a dynamic and secure society through communication and engagement with all those concerned.
We will take various actions. With regard to tax relief measures, we will help raise awareness and utilization of the new life insurance premium tax deduction through public relations initiatives, to ensure it gets off to a smooth start in January 2012. Concerning regulatory reform, we will continue to call for information exchange between the public and private sectors with a common citizen numbering system to improve convenience for consumers and raise productivity in both sectors. Communication with consumers will be more crucial than ever to ensure that such initiatives of the LIAJ help create establish a system to meet the genuine needs of the population. We will therefore continue to collect and reflect feedback from consumers through such mechanisms as the Interactive Dialogue on Life Insurance and Financial Alternative Dispute Resolution (ADR).
All these initiatives depend on a good environment for Japanese life insurers that allows them to manage their business with a long-term perspective. For example, international rules on financial regulation and international accounting standards, which are currently under discussion, must serve the real interest of policyholders, taking into account the needs of the Japanese market and the characteristics of the life insurance business. In this regard, we must make our views heard as a “major insurance nation” through active participation in international forums.
We will also provide input as appropriate to the Financial System Council and other relevant organizations to enable more dynamic investment and global business operations, since the government, in its Action Plan for the New Growth Strategy, has invited life insurers to lead the economy as a growth industry by expanding their activities overseas.
Finally, further discussion will be needed throughout this fiscal year on the ideal "safety net" to protect customers. Thus, we will consider and propose revisions to the current system based on the 10-year-old Life Insurance Policyholders Protection Corporation of Japan, taking into account the changing business environment.
3. Social service activities
As I mentioned above, life insurers can contribute to society by delivering their mission and functions, which are highly social and public by nature. Positive action as good corporate citizens and contribution to local communities are also highly important, as they exemplify the spirit of mutual aid.
In this respect, we will be taking various initiatives under the New 3-Year Plan for Social Service Activities, developed this fiscal year, including support for nursing care/child-rearing and the promotion of family/community ties through environmental education.
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