On assuming office, the new chairperson issued a policy statement which calls for contributing to a better co-existing future by earning trust and reputation for reliability from society.
Mr Takada said the Life Insurance Association of Japan (LIAJ) strives “to promote the sound development and maintain the reliability of the life insurance industry in Japan, thereby contributing to the improvement of the people’s lives”.
As we work towards our goal, the environment surrounding our citizens entered a period of transition in the recent years.
While the impact of the U.S. economic policies still requires close monitoring, in addition to the continuous price increase due to soaring raw material and energy prices, and shortage of commodities, people are facing difficulties from unpredictable and highly uncertain environment triggered by challenges such as frequent natural disasters in various regions.
Furthermore, 2025 is the year when baby boomers will reach the age 75 years or older (also known as “old-old ages”). As medical and care needs are expected to increase, social security cost will rise as well, while labour shortage will become severe. These impending challenges, which no country has yet experienced, may also eventually lead to unfavourable consequences to people’s lives.
In such a national pivotal moment, it is indeed the time for the life insurance industry, who has long provided a strong preparation and security for the future, to fulfil its mission. We believe that it is important to contribute to the improvement of people’s lives by demonstrating our commitment through honest and dependable business operations to the fullest extent of our capabilities.
As an industry that supports customers throughout their lifetime, we believe that we can help every single individual to lead a flourishing life, and can be of assistance to build a “better co-existing future” together even in difficult times.
Accordingly, we will focus on the following three core points for this year, to expand reliable security and trust, and to play a part in helping to create a better co-existing future for everyone.
1.Promotion of customer-oriented business operation
The most important thing to provide customers the confidence and assurance for the future, is “customer-oriented business operation” which pursues their best interests. The life insurance industry must continue to acknowledge and prioritize this concept as the basis of business operation.
We will share examples of best practices and continue to encourage member companies to improve their business structures, based on the “Viewpoints for Further Enhancement of Compliance Risk Management Structure Related to Direct Salesperson Channel” published and follow up since February 2023.
With regard to insurance sales by independent agents, we understand that the most important thing for customers is to ensure that they have the opportunity to select the appropriate product. As we accept recent feedbacks and issues about the life insurance industry, we as a whole, including intermediary agencies, will work on pursuing the best interests of our customers by taking the following measures. We will build an appropriate relationship between intermediary agencies and customers and move forward with the establishment of a system to prepare for the implementation of “the amendments of the Insurance Business Act” approved by congress this year. We will also promote constructive communication between insurance companies and the sales workforce, based on the aspect of accomplishing product governance of foreign currency-denominated single premium insurance.
2.A sustainable society and contribution to a better future
Seeking to contribute to a sustainable society, the LIAJ established priority items for achieving SDGs goals within the life insurance industry, and has been implementing various initiatives to encourage member companies’ support. In order to further contribute to the improvement of people's lives, it is substantial to promote initiatives that create a “sustainable society” as an extension of what we have now, along with a goal to create a better co-existing future that goes beyond the present state.
Furthermore, to share information on the concept of “well-being”, which is recently discussed as a global index to represent the affluence of a nation, and its acknowledgement of forthcoming possibilities, we are scheduled to hold a symposium, which is intended to present information on the contributions of our industry towards the goal of making Japan a “Leading Asset Management Center”, guided by the government, and incentives taken to improve the individuals’ “financial well-being”.
In addition, with the aim of promoting further participation of women in the life insurance industry and realising an environment where everyone can feel an overall sense of well-being, we plan to conduct a survey on efforts to eliminate unconscious bias, and hold networking events for female leadership candidates of our member companies, as well as compile a report on efforts of the industry to address the issue of caregivers forced to quit their job regardless of their gender, which is a problem considered to be one of the obstacles to sustaining an active labour force.
We will also continue to fulfil our role to realize a sustainable society, by working on improvements in the investee company's value, and on sustainable economic development through ESG investments and stewardship activities.
3.Dissemination of information for a sound development of the life insurance industry
For the life insurance industry to continue to hold a robust business and provide security to customers, even in an unpredictable and uncertain environment, it is important that we progress by conducting a sincere and steady business, and by earning customers’ understanding and approval of our various activities.
We will dedicate a page on the LIAJ website to introduce consolidated information on social contribution activities of our member companies, which aims to improve the reputation of the entire life insurance industry by strengthening public relations. In this way, we can promote a seamless way to disclose information so that the public will understand more easily and familiarise with the life insurance industry’s social contribution activities.
As for insurance sales representatives, many people regardless of gender and age are actively working. We are inviting the public to come up with a more affable way to represent the sales workforce so the customers will be more acquainted with the various tasks they perform and understand their purpose. Having a deeper understanding of what they do will support and encourage them to achieve further success.
Additionally, we will deliver much information about the life insurance and the industry. This information will include the initiatives to enhance the people’s understanding of life insurance and to contribute to the improvement of financial literacy within the field of insurance, the life insurance business during the Showa era as we celebrate the 100th anniversary, and the “economic value-based solvency regulation” which will be implemented this fiscal year relating to customer information disclosure.
On top of the above mentioned three core points, we will continue to maintain our fundamental structure, so that the life insurance industry will be able to keep the customers’ trust, and to have a sound development.
On the taxation side, we will continue to request the expansion of life insurance premium deduction system to support and advance the various preparation needed for our people’s life security.
As for the expansion of scope of business and insurance coverage limit of Japan Post Insurance, it is essential to have fair competition conditions to ensure improvement in consumer profit in the middle to long time horizon. That is why we will be monitoring the effect on the market and will express our opinion when circumstances dictate.
We will proactively express our opinions concerning issues related to accounting and regulation by examining internationally discussed issues and domestic life insurance business characteristics. Additionally, we will inform the LIAJ international activities to the domestic and international public.
Mr Takada said, “These are some of my commitments as I assume the role of chairperson at the LIAJ. We will make the utmost efforts this year, the same way as we have for a long time, to fulfil the social mission of providing additional value to the future’s security, and contribute to the enhancement of the people’s lives, especially in a time where we are facing many uncertainties.
We would highly appreciate your continued support and cooperation.
Yukinori Takada
Chairperson, The Life Insurance Association of Japan