Based on the experience gained over its 130-year history, the Sompo Holdings Group views imaginable risks as business opportunities as it contributes to society by providing products and services of the highest quality that lend to the security, health, and wellbeing of customers.
| Key Megatrends |
Risks |
Opportunities |
Strategies |
Lower birth rate and aging population in Japan
- Population decline
- Greater regional disparities
- People living 100 years
|
- Contraction in existing businesses and insurance markets
- Tougher competition as the market continues to shrink
- Changing needs as people grow old
- Contraction in regional markets
- Shortages of human resources as Japan’s population declines
etc.
|
- Creation of new markets from the emergence of new risks
- Development of new products and services from growth in the senior citizen market
- Identification and leveraging of market needs through support for regional revitalization
- Improvements in productivity from greater work efficiency
etc.
|
- Adopt a growth strategy utilizing IT and digital technology
- Create new businesses by collaborating with advanced players
- Decide prices from a customer perspective
|
| Rapid advances in technological innovation
|
- Digital disruption causes tougher competition as companies from other sectors enter the insurance business
- Less demand for insurance due to advances in autonomous technology, the spread of MaaS
- Risk of increasingly sophisticated cyberattacks
- Departure of talented personnel who have diverse backgrounds and specialist knowledge
etc.
|
- Greater potential in new business beyond the boundaries of insurance
- Creation of new business models as autonomous technology advances
- Increase in needs to counter cyber risks
- Evolution into a more attractive company and need to secure talented personnel
etc.
|
- Advance new business models
- Implement marketing strategies targeting digital natives
- Use digital technology to change points of contact with customers
- Raise work efficiency in each business division
|
Natural disasters becoming the norm
Larger impact from climate change
|
- Higher insurance payments from an increase in natural disasters
- Diminished business environment and foundation from the erosion and depletion of natural capital
- Hardening of the reinsurance market due to damage from massive natural disasters
etc.
|
- Stronger needs for products and services that address abnormal weather and the transition to a decarbonized society
- Growth in ESG investment
- Need to increase market trust by properly disclosing information
etc.
|
- Create new businesses by collaborating with advanced players
- Collaborate with stakeholders, proactively participate in initiatives
|
