Business Environment and Medium-to-Long-Term Course

Although COVID-19 has increased uncertainties in the business environment, the Sompo Group views imaginable risks as business opportunities, and will strive to contribute to the security, health, and wellbeing of its customers and society as a whole by providing insurance and related services of the highest quality possible.


  • Rise of protectionism and populism
  • Increase in international political conflicts and trade friction
  • Ballooning global debt (financial collapse of some emerging countries, enlarged fiscal deficits in developed countries)
  • Large-scale immigration and refugees due to political instability


  • Creation of economic blocks, corporate supply chain reorganization, vulnerabilities
  • Changes in industry landscape from acceleration of digital technologies, including remote and non-contact technologies
  • Flattening of global economic growth due to COVID-19
  • Shift in focus to stakeholders with emphasis on diversity
  • Expansion of investments and financing with emphasis on ESG


  • Increase in risks simultaneously happening in other regions (pandemics, cyberattacks, etc.)
  • Larger and more severe wind and water damage, earthquakes and other natural catastrophes, and global climate change and global warming
  • Increase in international conflicts, ethnic conflicts
  • Greater inequality, such as poverty, permanent inequality
  • Changes in labor markets
  • Risk-off demand for predictions, forecasts and prevention using real data
  • Population growth in emerging countries, growth of middle class
  • Increase in elderly people worldwide
  • Transition to carbon-free society
  • Sharing economy
  • Acceleration of initiatives for next-generation mobility


  • Cybersecurity threats (information leakage, infrastructure damage)
  • New automotive technology (automatic braking systems, self-driving cars, etc.)
  • Non-contact healthcare and nursing services, labor reduction (online, sensors, etc.)
  • Advances in clean energy technology
  • Utilization of big data and advances in AI technology
  • Advances in robot technology (for welfare settings, caregiving, etc.)

  Risks Opportunities
Rapid Technological Innovation and Digitalization
  • Digital disruption and industry commoditization leading to tougher competition as companies from other sectors enter the insurance business
  • Decline in accidents thanks to self-driving car technologies, less demand for insurance due to advances in CASE*
  • Advanced data use, higher severity of cyber risks
  • Departure of talented personnel who have diverse backgrounds and specialist knowledge
    • etc.

  • Greater potential in new businesses outside boundaries of insurance
  • Creation of new business models for sharing economy
  • Development of customer-oriented products that precisely match market needs
  • Business models based on real data, cybersecurity
  • Diverse employment formats, personnel management changes


Changes in Market Conditions
  • Tougher competition in shrinking market
  • Changes in needs from low birth rates and increase in elderly people
  • Divergence between urban and rural
  • Personnel shortages due to declining populations


  • Expansion of market share with high-quality services and increase in productivity via growth and work efficiency gains
  • Growth in senior citizen market and development of new products and services
  • Industry–government–academia projects to create problem-solving communities based on concepts of sharing and helping one another
  • Work-style reform (diverse work styles, focus on output)


Climate Change and Natural Catastrophes
  • Increase in insurance payments due to more severe natural catastrophes
  • Diminished business environment and foundation from the erosion and depletion of natural capital
  • Changes in reinsurance market due to climate change and global warming


  • Strengthening of resilience to natural catastrophes, dispersion of risks in business portfolio
  • Growth in ESG investments, development of products and services for decarbonized society
  • Use of advanced technology to detect risks, creation of business models resilient to change


*Connected, autonomous, shared & services, and electric



  • Enhance profitability of insurance business
  • Improve balance between profitability and growth, decentralization caused by globalization
  • Strengthen resilience through selection and concentration
  • Expand services and secure earnings sources by expanding into peripheral business domains
  • Provide total solutions for security, health, and wellbeing of customers
  • Enact qualitative evolution and change in business portfolio
  • Formulate data-driven growth strategies utilizing IT and digital technology
  • Create new businesses by collaborating with advanced players
  • Decide prices from a customer perspective
  • Change business models with advanced digital technology (including remote work, online processes)
  • Increase productivity and work efficiency in business divisions
  • Solve social issues with Group strengths
  • Build and commercialize a Real Data Platform
  • Collaborate with stakeholders, proactively participate in initiatives
  • Invest in ESG initiatives and the SDGs, step up initiatives
  • Diversify and professionalize human resources who can innovate
  • Emphasize output, change work styles during and after COVID-19
  • Corporate culture reform (mission-driven, results-oriented)