Business Outline
In the Sompo Holdings Group, Sompo Japan Nipponkoa Himawari Life Insurance is responsible for the domestic life insurance business, which has strong growth potential. As one of the pillars of the Group’s business strategy, since fiscal 2016 the company has been transforming into a health support enterprise that aids people in leading healthy lives.
Change of Name to Sompo Himawari Life Insurance Inc.
With the aim of being readily understandable to customers, Sompo Japan Nipponkoa Himawari Life Insurance, Inc., will change its name to Sompo Himawari Life Insurance Inc. on October 1, 2019, subject to approval by the relevant authorities. Going forward, we will continue to think outside the box and establish our brand as a front runner in security, health, and wellbeing.。
Business Environment and Basic Strategies
We expect Japan’s life insurance market to contract steadily as its society ages. Competition is intensifying due to the digitalization and diversification of sales channels. In this environment, we believe that our mission is to help make the world a brighter place by protecting customers as much as we can from unhappiness and anxiety associated with the risk of death or illness.
Since launching the health service brand Linkx (pronounced “link cross”) in September 2016, Sompo Japan Nipponkoa Himawari Life Insurance has been rolling out a varied selection of health services. In fiscal 2018, we launched four Insurhealth® products, which integrate traditional insurance functions and healthcare functions. The products’ insurance functions will provide financial support, while healthcare functions will maintain and improve customers’ health through prediction, prevention, and monitoring.
Based on the Policy on Customer-Oriented Business Operations, Sompo Japan Nipponkoa Himawari Life Insurance will continue providing new value that traditional insurers cannot emulate.
Progress of the Mid-Term Management Plan
We will seek to evolve into a health support enterprise by advancing our new growth strategy and rapidly improving productivity based on the concepts of breaking industry norms, adopting the customer’s standpoint, and becoming a familiar and trusted presence for customers.
Advancing Our New Growth Strategy
All employees will work to build an integrated three-part business model. This model will incorporate ICT and enable sales representatives to offer new value in the form of novel services based on health and products that incorporate these services. Further, through ongoing improvements that closely reflect the needs of customers, we will continue providing them with new value.
Rapidly Improving Productivity
We will reform the fundamental elements of our operations, including operating rules, ICT, products and services, sales and marketing systems, and personnel development. By using new ideas to rapidly improve productivity and stepping up the pace of our efforts dramatically, we will realize our target profile.
In fiscal 2018, due to steady growth in income from insurance premiums, adjusted profit was ¥32.8 billion, outperforming our target of ¥32.0 billion. In fiscal 2019, targeting adjusted profit of at least ¥34.0 billion, we will realize one target of the Mid-Term Management Plan.
The Mid-Term Management Plan sets targets for adjusted profit of ¥34.0 billion for the end of fiscal 2019 and ¥37.0 billion for the end of fiscal 2020. At the end of fiscal 2018, adjusted
profit was ¥32.8 billion, reflecting a favorable trend. Further, for policies in force we have set targets of 4.29 million for the end of fiscal 2019 and 4.45 million for the end of fiscal 2020.
At the end of fiscal 2018, there were 4.14 million policies in force. Through the timely introduction of new products, we will achieve an increase in policies in force that is centered on high-margin products. Based on the two overriding strategies of achieving new growth and rapidly improving productivity, Sompo Japan Nipponkoa Himawari Life Insurance will expedite the evolution and improvement of its initiatives to realize the vision of the Mid-Term Management Plan.
Main Future Initiatives
Sompo Japan Nipponkoa Himawari Life Insurance will provide new added value by rolling out Insurhealth® products, which integrate insurance with services that maintain and improve customer health.
In fiscal 2018, we launched four Insurhealth® products, releasing a renewed family income insurance product in April, Linkx Pink in August, Linkx Egao Wo Mamoru Dementia Insurance in October 2018, and Linkx Nineguard in March 2019.
Focusing on Insurhealth®, we will continue accelerating the evolution of products, sales channels, and services. Further, we will actively advance health and productivity management and enhance the capabilities of personnel with the aim of promoting the mental and physical health of employees and their families and creating an organization in which employees
perform well and feel comfortable taking on challenges.
In this way and by leveraging the business model and business structures that we have built, we will transform from a traditional life insurer into a health support enterprise that aids people in leading healthy lives.
