Aim to build “ A Theme Park for Security, Health & Wellbeing ”
I would like to express my gratitude to all stakeholders for your continued support.
The Sompo Group is mainly engaged in the four businesses of domestic P&C insurance, overseas insurance, domestic life insurance, and nursing care & healthcare. To prevail in an age of VUCA*1 – the current “volatile, uncertain, complex and ambiguous” era – we have embraced a Group Management Philosophy that calls on us “to contribute to the security, health, and wellbeing of our customers and society as a whole by providing insurance and related services of the highest quality possible,” and thereby contribute to society. Guided by this Group Management Philosophy, we seek to realize a globally unparalleled, unique, and progressive “Theme Park for Security, Health & Wellbeing.”
This “Theme Park for Security, Health & Wellbeing” means that the Sompo Group will convert the abstract concepts of “security,” “health” and “wellbeing” into tangible solutions and services; closely support the lives of people, who form the core of society; and properly utilize all manner of advanced technologies, including digital technology, in order to solve social issues, along with providing seamless support to customers. The Sompo Group will advance the roles it must fulfill and increase its corporate value. Concurrently, we will seek to realize our Group Management Philosophy as we incorporate feedback from many different stakeholders, with the goals of solving social issues and realizing a sustainable society.
Under the five-year Group Mid-term Management Plan that started in fiscal 2016, the year ended March 31, 2017, we have been working to rigorously enhance the appeal of each of our businesses. At the same time, we have been implementing measures such as exploring new business opportunities and upgrading and enhancing customer services by harnessing business collaboration within the Group and digital technologies. Efforts to address the Group’s key priorities are driving business portfolio transformation forward. We are also pushing ahead with measures to shift to a Mission Driven, Result Oriented corporate culture and achieve corporate culture reforms.
We will work to tackle the following priorities in each of our businesses. In the domestic P&C insurance business, the Group’s largest business, we will bolster the profitability of existing businesses and create new earnings sources by forming collaborations with innovative players across industry boundaries and by utilizing digital technologies. In the overseas insurance business, we will accelerate organic growth worldwide with a truly integrated platform that serves as the Group’s earnings growth driver, and build an optimal portfolio through various means, including disciplined M&A activity. In the domestic life insurance business, we will generate steady earnings growth through our transformation from a traditional life insurance company to a “health support enterprise” by rolling out “Insurhealth®” initiatives that integrate traditional insurance and healthcare functions. In the nursing care & healthcare business, we will strive to achieve two priorities. The first priority is to improve profitability through high-quality and efficient management aimed at expanding our earnings base in the senior market. The second priority is to realize “Japan, an affluent country that can boast to the world of a long and quality life” by solving social issues faced by Japan’s aging society, such as dementia. Moreover, we will ambitiously create new business models by integrating and analyzing real data*2 generated by Sompo Group companies and their partner companies. We are also working to strengthen our Group governance structure.
In terms of the business execution framework, under the comprehensive oversight of the Group CEO and Group COO, we have put in place the Business Owner System and the Group Chief Officer (CxO) system for agile and flexible decision-making and business execution as well as for clarifying the division of authority and responsibility. Going forward, we will take further steps to maximize the capabilities of two meeting structures, specifically the Global Executive Committee (“Global ExCo”) and the Managerial Administrative Committee (MAC), with the goal of building a solid execution framework to support the Group’s growth.
In terms of the supervisory framework, the transition to a Company with Committees Structure has allowed us to compose a Board of Directors centered on outside directors and to establish three legally mandated committees: the Nomination Committee, the Audit Committee, and the Compensation Committee. With outside directors serving as the chairs of each committee, the committees carry out impartial and active discussions directed at strengthening Group governance.
The Sompo Group will implement the measures described above, with the aim of achieving the Group’s transformation into “A Theme Park for Security, Health & Wellbeing” and delivering dramatic growth.
I sincerely ask all of our stakeholders for your continued support as we endeavor to reach our goals.
- 1 VUCA stands for Volatility, Uncertainty, Complexity and Ambiguity.
- 2 Data acquired from activities by individuals and companies in the real world through sensors and other means (health data, etc.)
(The opposite of “real data” is “virtual data” (i.e., data generated by activities in online spaces, such as the Internet and social media).)