Policy Statement by New Chairperson

Commitment to Fostering a Thriving Lifestyle for All and Passing Down a Sustainable Society to the Future Generations

The life insurance industry has been operating with a public mission of providing peace of mind to customers, and maintaining a close relationship under the belief of mutual aid.

Today, the environment surrounding the life insurance industry is changing significantly. Frequent occurrence of natural disasters, higher resource prices and increased fluctuation of exchange rates are causing uncertainty in people’s lives, and making it harder to plan for the future. Also through digitalization of society including the development of generative AI technology and the popularization and progression of the Individual Number Cards, individual lifestyles have changed through the prevalence of social media and experiences from the COVID-19 pandemic, which have resulted in diversity of personal values.

Meanwhile, the Japanese economy has continued to recover in the context of the normalization of economic activities after the pandemic and monetary easing. There are positive indications for the future as the Nikkei Stock Average in February 2024 hit a new high since the Japanese “bubble economy”.

As we live through the turning point in history, we need to not only look at the present, but have a long-term perspective for the coming generations who will bear the future. We believe the life insurance industry is in a position to be close to customers’ lives and to address social issues from a long-term perspective. Thus, it would be able to fulfill the role in the realization of a sustainable society.

With the goals of contributing to the realization of a sustainable society and passing it down to the next generations while staying close the people to foster a satisfying lifestyle, the Life Insurance Association of Japan (or the “LIAJ”) will focus on the following three pillars of actions for the current business year.

1. Promotion of Our Customer First Business Operations

In order to fulfill the public mission of the life insurance industry to deliver unwavering peace of mind to customers, the most important point would be for the life insurance industry to focus on its “customer-first business operations” by pursuing the best interest of customers.

In light of this, the LIAJ has supported member companies on ensuring proper operation by developing a voluntary guideline, which summarizes specific practices that would follow the idea of customer-first and by following up on efforts made by member companies. In addition, to improve the quality of work that contributes to “customer-first business operations” at our independent intermediaries, we are conducting a quality evaluation of their business operations.

In the current business year, the LIAJ will continue to support member company efforts on the distribution and management structure of foreign currency-denominated single premium insurance products by following up on measures taken by insurers as producers and financial institutions as distributors, which is in line with the LIAJ’s updated guidelines dated April 2024. As for the compliance risk management structure of member companies, the LIAJ will continue to contribute to the enhancement of their efforts by sharing best practices based on “Viewpoints for Further Enhancement of Compliance Risk Management Structure Related to Direct Salesperson Channel” published in February 2023.

2. Initiatives to Support People Leading a Thriving Life

In order to have a long thriving life, it would be important to make a life plan, learn about health promotion, asset formation, risk preparation, and take actions according to personal values.

The government is advocating to promote Japan as a “leading asset management center” to foster economic growth and increase citizens’ income as a priority measure to achieve a “virtuous cycle of growth and distribution.” In particular, it aims for the enhancement of financial and economic education to support steady asset formation of households. As for the Japan Financial Literacy and Education Corporation (or “J-FLEC”), which was established in April of this year, we are expecting the creation of financial and economic education tailored to the needs of individuals from various ages through deployment of lecturers and organizing seminars.

The LIAJ has been committed in enhancing people’s understanding on the importance of self-help and the need for appropriate combination of self-help, mutual assistance and public assistance by producing educational materials and videos on insurance. In accordance with the Comprehensive Collaboration Agreement on Insurance Education, which was finalized between the General Insurance Association of Japan and the Japan Institute of Life Insurance last business year, we will communicate our efforts on insurance education and have a collaborative discussion on new initiatives such as developing new materials and creating opportunities for providing information. We will continue contributing to enhance people’s financial literacy, particularly in the field of insurance through such cross-sectoral measures.

The government is also taking the initiative in the transition to a digital society such as encouraging the use of the Individual Number Card in order to realize a valuable lifestyle where everyone can enjoy the benefits from digitalization. With this background, the LIAJ has taken various measures to improve customer convenience by utilizing digital technologies and the Individual Number System. This business year, we will enhance efficiency in insurance policy procedures by supporting member company efforts to adopt and utilize the Individual Number System, and eventually contribute to the realization of a digital society.

3. Initiatives for the Realization of a Sustainable Society

In a time where social issues such as climate change are on the rise, we, as the generation living in the present, have missions to maintain society and the environment as a foundation of living as well as to pass down a sustainable society to the future generations. Amid this situation, we recognize that life insurers are expected to further fulfill its role from both aspects as an operating company distributing insurance and as a responsible institutional investor with total assets of approximately ¥400 trillion.

The LIAJ has set priority areas to achieve the Sustainable Development Goals (SDGs) in the life insurance industry. It has published booklets and organized workshops on select topics with the aim of promoting member company efforts. For the current business year, we will commit to communicate with customers on how to enhance their understanding about the efforts of the life insurance industry to contribute to a sustainable society, and will continue to provide information concerning our member companies.

As an institutional investor, the life insurance industry has been contributing to the development of Japan’s economic activity through investing in infrastructure that support livelihoods as well as in growing areas.

We will continue to support the improvement of investee company value through ESG investment/financing and stewardship activities. Also, we will play an increasing role in the realization of a sustainable society through conducting and actively communicating efforts to contribute to improve functions of the financial/capital market, which is advocated in the government’s policy plan for promoting Japan as a “leading asset management center”.

In addition to the three pillars of action above, we will continue to foster an environment that maintains the trust of customers and ensures the sound development of the life insurance industry.

With regard to taxation, we will continue to press for the expansion of the life insurance premium deduction system to support and promote various life coverages people need.

In regard to the expansion of the scope of business and increase of maximum insurance undertaking amount of Japan Post Insurance, the LIAJ will consider potential impacts on the market, and express its views as necessary on the basis that a level playing field is essential for improving consumer benefits in the mid-to-long term.

We will also provide active feedback on international financial regulations, international accounting standards and domestic regulations based on our thorough consideration on the unique characteristics of the Japanese life insurance industry. Also, we will share information on the LIAJ’s international activities globally.

These are some of my commitments as I assume the role of Chairperson at the LIAJ. I will make my utmost efforts this year to fulfill the mission of the life insurance industry and contribute to the development of a sustainable society even at a turning point in history, so I would highly appreciate your continued support and cooperation.