Mr Shirota, who assumed the chair of the association last year, said in a message, following a board meeting on 12 June, that the specific initiatives include:
(1) Initiatives to restore trust
Following information leak incidents that were widely reported in 2024, the GIAJ has been taking measures to support its member companies to prevent a recurrence. The initiatives include surveys of member companies, requesting member companies to institute thorough measures to prevent recurrences, holding information management compliance seminars, and formulating Compliance Guidelines for Solicitation on Information Management.
The GIAJ said that it would continue to check the progress of each company’s recurrence prevention measures and strive to ensure the appropriate handling of information throughout the industry.
The GIAJ also said that it would submit its views on proposed amendments to the “Comprehensive Guidelines for Supervision for Insurance Companies” to clarify interpretations and ensure that member companies have consistent operational practices.
i) Realising a healthy competitive environment
a. Developing new guidelines
To fundamentally reassess outdated industry practices, the GIAJ
is preparing to revise guidelines on the “secondment of employees” based on business improvement orders from the Financial Services Agency (FSA) related to information leak incidents and draft revised supervisory guidelines.
In addressing "providing undue favours", the GIAJ has organised basic policies related to inappropriate facilitation as an addendum to the “Compliance Guide for Solicitation” for agents and solicitors. In addition to this basic approach, updated guidelines for member companies are being discussed with the relevant authorities to set clear and specific criteria. They are scheduled to be released concurrently with the revised supervisory guidelines.
Additionally, the GIAJ plans to establish a ‘whistle-blowing contact’ for member companies at the same time as the publication of the guidelines for member companies.
b. Study on new co-insurance underwriting methods
To review business practices where other insurance companies would match the lower premiums presented by the leading company during the formation process of coinsurance, the GIAJ has formulated a procedure manual for the “Differential Method” of underwriting co-insurance policies which does not unify the premium rates of respective insurers.
Regarding the “Arranger Method,” which was prepared with reference to syndicated loans, the GIAJ is discussing and reviewing ideas with the relevant authorities to formulate practical guidelines for appointing an arranger.
ii) Improving the business quality of insurance agents and solicitors
a. Study on introducing agency business quality evaluation criteria and operating systems
To establish a system that allows a neutral third party to evaluate the quality of insurance agents' and solicitors' business fairly and appropriately, the GIAJ has prepared the guideline “Evaluation Guidelines for Agency Business Quality (for general insurance agents).”
At the same time, the Council on Quality of Agency Business, consisting of external experts such as university professors, consumer representatives, and lawyers, is established to develop specific practical guidelines for the full-scale operation of the third-party evaluation system from the financial year starting in April 2026 (FY2026).
b. Study on enhancing and upgrading the education and examination system for agents and solicitors
The HIAJ has revised the General Examination for General Insurance Solicitors (Basic Unit) for a more accurate assessment of examinees’ acquisition of fundamental knowledge. The new format will be introduced in July, and further revisions will be considered, as necessary.
In cooperation with the Independent Insurance Agents of Japan, seminars and networking events were held to raise awareness of the “General Insurance Total Planner” qualification (the highest level of general insurance solicitor qualification), and to promote the uptake of the credential across the industry.
Additionally, the GIAJ will continue to study the implementation of a continuing education system and the creation of credentials for persons responsible for compliance with laws and regulations.
iii) Promoting understanding of corporate insurance
The GIAJ has taken the following measures to ensure industry-wide readiness to provide information on insurance and risk management in a comprehensive manner.
- Creating the “Risk Management and General Insurance” guide for companies (corporate customers). This collates basic information on the necessity of risk management, the roles of general insurance, and the fundamental principles of insurance.
- Staging “Risk Management Seminars for Companies” to support advancing risk management strategies, where practitioners involved in risk management at their respective companies share specific examples, such as their own initiatives and the effectiveness of those initiatives.
iv) Strengthening countermeasures against fraudulent claims
The GIAJ has taken the following new measures for the general insurance industry, automobile repair shops, and automobile users, respectively.
- For the general insurance industry:
- The general insurance industry's whistle-blowing system was partially revised to clarify its function as a direct reporting channel where employees of member companies, agents, etc can report directly to the GIAJ anonymously.
- At the request of the GIAJ, the Jiken Center (JKC: Research and Training Center for Automobile Repairs) produced a training video for adjusters.
- For repair shops:
- Based on the “Guidelines for Ensuring Transparency of Auto Body Repairs for Consumers” published by the Ministry of Land, Infrastructure, Transport and Tourism, the GIAJ prepared a photographic guide for repair shops that illustrates proper methods for photographing damaged parts of vehicles.
- A joint declaration was issued with the Japan Auto Body Repair Association (JABRA)regarding ensuring transparency in auto repair.
- For automobile users:
- An animated video was produced to explain key checkpoints from the occurrence of an accident to the delivery of the repaired vehicle.
v) Further strengthening compliance and governance
- Seminars were held for member companies on anti-trust, internal audit, and information management, respectively.
- A Compliance Guide for Solicitation on Information Management was formulated.
- The General Insurance Institute of Japan (GIIJ) distributed a video of a special lecture and revised the textbook in the regular Non-life Insurance Educational Courses to promote participants' understanding of the Anti-Monopoly Act.
vi) Follow-up on efforts to restore trust
To ensure the effectiveness of respective measures and to raise their level within the industry as a whole, it was decided that follow-ups would be conducted with member companies twice a year.
The first follow-up was conducted in November 2024, and the second follow-up in May this year.
Through the follow-ups, it was confirmed that member companies are not only revising their internal policies and rules based on the GIAJ’s guidelines but also beginning to see tangible results. Additionally, the follow-ups helped identify challenges that have emerged as a result of implementing these initiatives.
vii) Other initiatives
The GIAJ has also conducted the following initiatives:
- Established a special website; “Initiatives to Restore Trust of Customers and Society.”
- Improved the GIAJ's website to deliver necessary information to customers.
- Commissioned a research study by the General Insurance Institute of Japan: “Regulations on Insurance Agents and Brokers and the Practice of Commercial Insurance Solicitation in Major Countries.”
(2) Initiatives related to the 10th Medium-Term Master Plan
i) Strengthening natural disaster response capabilities
In January this year, which was the 30th anniversary of the Great Hanshin-Awaji Earthquake, the GIAJ held an event in Kobe City to widely promote the importance of disaster preparedness.
GIAJ branches have engaged in initiatives such as reflecting on the 2024 Noto Peninsula earthquake and have been making efforts to disseminate and promote earthquake insurance based on respective local situations in cooperation with the Independent Insurance Agents of Japan and local governments.
As a result of these efforts, the number of earthquake insurance policies in force as of the end of March 2025 increased by 1.5% from the previous year to approximately 22m.
The GIAJ has developed an industry-wide joint system, the “Earthquake Loss/Damage Declaration Support System (web-based loss/damage status declaration method),” to ensure prompt and appropriate claim payments in the event of a large-scale earthquake. Moving forward, the GIAJ will consider specific measures to further promote earthquake insurance.
The GIAJ has also been working with related ministries, agencies, and local governments on safety education programmes, such as “Explore Disaster Prevention” activities, which contribute to strengthening local disaster prevention capabilities, and measures to prevent troubles caused by malicious vendors taking advantage of disasters.
ii) Increased convenience through digitalisation
The GIAJ has launched “One-JIBAI,” an industry-wide joint system for Compulsory Automobile Liability Insurance (CALI), which enables non-face-to-face CALI procedures, cashless premium payments and issuance of CALI certificates in PDF format.
With the ongoing development of the system and examination of business processes, the promotion of paperless CALI claim adjustment and claim payment operations is also progressing smoothly.
The GIAJ has digitised the educational materials for the General Examinations for General Insurance Solicitors (Basic Unit and Product Unit) and have created an environment that allows access to these materials via PCs, tablets, and mobile phones.
iii) Enhancing general insurance literacy
In cooperation with the Independent Insurance Agents of Japan and local METI (Ministry of Economy Trade and Industry) bureaus, the GIAJ held seminars tailored to regional situations, produced educational videos on water-related disaster risks and preparedness, and launched a special website named “Insurance Navigator for Businesses.”
Based on the “Comprehensive Collaborative Agreement on Insurance Education” with the Life Insurance Association of Japan and the Japan Institute of Life Insurance, the GIAJ held joint seminars for junior high and high school teachers of home economics, social studies, and civics in summer and winter. In addition, the GIAJ created a new card game as a teaching tool for high school students called “Wishing Happiness to Those Who Prepare for the Future.”
Enhancing effectiveness
In concluding remarks in his statement, Mr Shirota said, “We have been advancing various measures, including the formulation of new guidelines, to resolve a range of issues, including a fundamental review of outdated industry practices. However, we strongly recognise that unless the effectiveness of these initiatives is enhanced and they permeate and become established throughout the industry, achieving industry transformation and regaining the trust of customers and society will not be possible.
“It is essential that member companies correctly understand the purpose of these initiatives and ensure that they do not become merely formalities. Furthermore, it is necessary to accurately recognise the current situation of their own companies and the industry through all available opportunities and to build a system that enables self-corrective actions.
“Based on this recognition, we reaffirmed at a board meeting on 12 June that both the Association (GIAJ) and its member companies will continue to place the highest priority on restoring the trust of customers and society.”