In the statement, Mr Funabiki said:
Over the course of the summer in Japan earlier this year, the country suffered a series of Nat CAT in quick succession.
These included an earthquake near the Tokara Islands, a tsunami following the Kamchatka Peninsula Earthquake and heavy rains caused by low pressure systems and fronts. Furthermore, the record-breaking heatwave caused numerous cases of heatstroke and dehydration.
Uncertainty in the environment surrounding people’s lives and corporate management, is also increasing due to factors such as soaring prices, trade friction, exchange rate fluctuations and tense international situations, all of which are heightening the sense of an uncertain future.
It is precisely under these challenging social conditions that the general insurance industry must strongly recognise its mission: to contribute to the stability of people’s lives and the sound development of the national economy.
To fulfil the mission and role expected of our industry, we must restore the trust of our customers and society as quickly as possible. To achieve this, and steadily advance our efforts toward “thorough implementation of customer-centric business operations” and “realisation of a sound competitive environment”, we will place compliance and ensuring the best interests of our customers at the core of all our activities.
Specific initiatives
This fiscal year, we are advancing initiatives to enhance the effectiveness of various measures aimed at restoring trust, making tangible and visible changes within our industry. Furthermore, in light of revisions to the Comprehensive Guidelines for Supervision of Insurance Companies (hereinafter “Supervisory Guidelines”), we will steadily and promptly advance the establishment of systems and rules related to insurance solicitation and other activities.
Initiatives to restore trust from customers and society
Regarding “Thorough Implementation of Customer-Centric Business Operations”, we are advancing initiatives centred on “efforts to improve the quality of insurance agency solicitation”. Regarding “Realisation of a Sound Competitive Environment”, we are moving forward with initiatives centred on “efforts to enhance risk management awareness within companies”.
Initiatives contributing to improving the quality of sales by insurance agencies
We are forging ahead with initiatives aimed at establishing solicitation management systems within insurance agencies and ensuring appropriate insurance sales practices through ongoing dialogue between agencies and insurance companies.
1. Trial of the third-party evaluation system for agency business quality
Centred on the “Council for Agency Business Quality” established within our association in June, we are preparing for a full-scale launch of the third-party evaluation system starting April 2025.
Since July, with the cooperation of insurance agencies, we began trial operations. These included initiatives to develop practical guidelines, such as implementing self-inspection checks and follow-up inspections.
Member companies have begun initiatives where insurance agencies and insurance companies mutually confirm “Self-Inspection Checklist” results and engage in dialogue.
A draft revision policy of the 2026 version of the “Self-Assessment Checklist” was formulated and public comments solicited. Based on the feedback received, a draft of the 2026 “Self-Assessment Checklist” and draft evaluation guidelines will be prepared, with another public comment period planned for October-November.
2. Restructured agent qualification system
We have revised the examination system for general insurance agents. Since July, the General Examination for General Insurance Solicitors (Basic Unit) question format was changed from “single-answer questions” to “single-answer questions plus multiple-choice questions”, thus increasing the difficulty of obtaining the qualification.
Furthermore, a new qualification system has been established for the compliance officers required at large-scale multi-representative general insurance agencies. While applications will be accepted starting in September, examinations are scheduled to begin in December. The curriculum covering the legal unit of the Experts Course of the General Insurance College Course has been enhanced. A new mechanism allows individuals who have passed the examination for this unit, and therefore obtained Experts Course certification, to acquire the compliance officer qualification by additionally studying video materials.
3. Initiatives to enhance risk management awareness within companies
To achieve a healthy competitive environment in the corporate insurance market, it is crucial for companies themselves to comprehensively identify and assess risks, implement measures to avoid or reduce them and build systems enabling them to select appropriate insurance products and services as risk transfer tools.
As highlighted in the Financial Services Agency’s Strategic Priorities announced in August, which includes “promoting corporate risk management utilising general insurance”, this requires concerted efforts by both the public and private sectors.
We will hold a seminar in November to support the enhancement of corporate risk management awareness and knowledge. The seminar will feature lectures and panel discussions aimed at helping management understand the importance of engaging in risk management.
Furthermore, as a measure to enhance the significance of the role of risk managers, we are holding discussions on establishing a common industry-wide education system. We will pursue this initiative over the medium to long term, with a view to establishing a risk manager qualification system in the future.
3. Responses based on amendments to the Insurance Business Act and supervisory guidelines
Based on amendments to the Insurance Business Act and Supervisory Guidelines, we have established new guidelines and revised existing ones concerning the establishment of systems and rules related to insurance solicitation.
The first is the establishment of the “Guidelines for Appropriate Provision of Benefits by General Insurance Companies”. These guidelines outline the basic principles and possible examples regarding the provision of benefits, which the FSA’s “Report of the Expert Panel on Structural Issues and Competition in the Non-Life Insurance Sector” identified as one factor hindering customers' opportunities for appropriate product selection and fair competition.
Concurrently, to understand the actual status within the industry regarding the utilisation and implementation of these guidelines by each general insurance company, a reporting window has been established. Based on reports received from non-life insurance companies, we will revise these guidelines, as necessary, to promote the proper handling of excessive preferential treatment.
Furthermore, based on reports, member companies will verify the facts of reported cases and, where necessary, encourage corrective actions and improvements. The second is the revision of the “Guidelines Concerning the Secondment of Employees from Non-Life Insurance Companies”. We added provisions concerning organisational structure to the content published last September.
In addition, to ensure stricter compliance with laws such as the Personal Information Protection Act, the Unfair Competition Prevention Act and the Antimonopoly Act, we have tightened the requirements for secondments to insurance agencies.
The third is the revision of the “Guidelines on the Protection of Personal Information for General Insurance Companies”. We have clarified the necessary measures to prevent the improper 4 acquisition of information through seconded personnel at general insurance companies, as well as the need for necessary and appropriate supervision regarding information provided by insurance agencies.
Fourth is the revision of the “Guidelines on Business-Related Equities”. We have revised expressions and wording to reflect amendments to the Supervisory Guidelines. Furthermore, considering recent changes in the environment surrounding insurance solicitation, we have revised the “Compliance Guide for Solicitation”.
To assist insurance companies in appropriately guiding insurance agencies, this guide explains matters that solicitors must comply with when soliciting insurance. The GIAJ will follow up to ensure member companies steadily advance initiatives to restore trust based on these guidelines, and work to embed these practices.
Regarding comparative and recommended sales, a major point of discussion in customer-centric business operations, we will deepen examinations to enable multi-representative agencies to conduct sales appropriately, based on the planned revisions to the Insurance Business Act Enforcement Regulations and the Supervisory Guidelines.
Initiatives related to the 10th Medium-Term Master Plan and objectives
We are steadily moving forward with various initiatives linked to the three key objectives of the 10th Medium-Term Master Plan.
1. Establishing a business foundation to support growth of the general insurance industry
We are developing the joint system “s-JIBAI” to make claim investigations and payment operations paperless for Compulsory Automobile Liability Insurance. We are currently conducting various pre-release tests and expect to launch as scheduled in December or later.
2. Enhancing the resilience of society and insurance systems
In anticipation of large-scale earthquakes such as a Nankai Trough Earthquake or a Tokyo Inland Earthquake, the “Earthquake Damage Claim Support System (Web-based damage status reporting system)” began operating in March. The total number of member companies able to handle this system is expected to increase by one to 12 by the end of September.
Using the system, customers can report damage and register photos via a smartphone or computer. Insurance companies can also manage claim cases and create the related forms via the website, enabling faster processing of earthquake insurance claims.
3. Promoting risk management understanding among consumers and businesses
This fiscal year, our eight regional branches, have continued to spearhead efforts to raise risk awareness among consumers and businesses, while actively promoting general insurance. For businesses, we are strengthening initiatives in collaboration with government agencies, focusing on the promotion of general insurance that covers not only natural disasters, but also cyber risk preparedness.
Based on our risk awareness and status survey, which indicates that only about 10% of SMEs are working to apply for and obtain business continuity plan (BCP) certification, we are considering measures to promote BCP development while sharing challenges with government agencies and other related organisations.
For consumers, to promote earthquake insurance, we appointed actor Kyoko Yoshine as our campaign ambassador starting in August. Our campaign uses the slogan, “Disaster supplies alone can’t protect everything. Start with earthquake insurance – it’s your first line of defence."
Furthermore, as part of our hazard map dissemination efforts, we began developing enhancements to the existing tool “Sonpo (General Insurance) Digital My Timeline”, which helps families plan evacuation actions during disasters. This development focuses on improving user convenience and expanding its content. In addition, from the perspective of preventing automobile accidents, we released a map of intersections with high traffic accident rates on 16 September.
As a joint initiative for consumers and businesses, we participated in the “National Conference for Promoting Disaster Risk Reduction (Bousai Kokutai) 2025” event, which was hosted by the Cabinet Office, etc., in Niigata City, Niigata Prefecture on September 7. We presented a session titled “Passing on the Experience of the Chuetsu Earthquake to the Next Generation: Learn Preparedness from Zero with Negi!”. The event featured a keynote speech by Professor Yasushi Uemura of Nagaoka University of Technology on “Passing on the Experience of the Chuetsu Earthquake to the Next Generation”.
This was followed by a talk session moderated by Ami Matsumoto (TV Niigata Announcer), featuring Professor Yasushi Uemura, freelance announcer Takahiko Fujii and Nao? and Megu from the Niigata local idol group Negicco. Approximately 400 people attended.
Initiatives addressing various issues
1. Follow-up on the “Guidelines for Dialogue and Consultation on Automobile Repair Labor Rates”
In August, we began conducting follow-ups with member companies on the “Guidelines for Dialogue and Consultation on Automobile Repair Labor Rates” which were published in March. We are confirming the implementation status of the dialogue and consultation based on the guidelines, and will continue promoting industry-wide initiatives.
2. FY2026 tax reform proposals
From the perspective of contributing to the development of Japan’s economy and building a society where citizens can live with peace of mind through the sound development of the 6 general insurance industry, we decided on our FY2026 Tax Reform Requests (7 items in total), and announced the details in July.
3. Support for emerging markets
The Insurance School (Non-Life) of Japan (ISJ), an insurance technical cooperation and exchange programme for East Asian regions that has been ongoing since 1972, was held again this fiscal year. Twenty-seven participants from 14 regions attended the advanced course from May to June, bringing the total number of graduates to 2,375.
We plan to hold a General Course from November to December, and conduct an overseas seminar in Vietnam in February next year.
Conclusion
With increasingly frequent and severe natural disasters and an economic situation marked by growing uncertainty, the environment surrounding us remains challenging.
Precisely because of these circumstances, we believe the role and responsibility of general insurance – a vital social infrastructure essential for realizing a safe and secure society – has become even greater.
Moving forward, our industry will continue to work together as one to tackle various challenges and contribute to the realisation of a sustainable society.