Governance

Evolving Governance

Sompo Holdings was established in 2010 as a holdings company and decided to transform to realize “A Theme Park for Security, Health & Wellbeing” to address the challenge of realizing sustainable growth as a P&C insurance Group that conducts business mainly in Japan which faces population decline, population aging, and low economic growth. Since then, we have continued to evolve governance to transform in a more progressive and steady way.

Future-oriented discussion by diverse executives and high-quality, agile decision-making are crucial for delivering on SOMPO’s Purpose to “create a society in which every person can live a healthy, prosperous and happy life in one’s own way with A Theme Park for Security, Health & Wellbeing” and it is SOMPO’s governance that has underpinned our efforts.

figure:2010 Establishment of NKSJ Holdings, 2014 Establishment of Sompo Japan Nipponkoa Insurance Inc., 2015 Full-scale entry into Nursing Care Business, 2016 Establishment of SOMPO Digital Lab, 2017 Establishment of global platform through acquisition of Endurance, Establishment of Palantier Technologies Japan

Business Execution that Combines Centrifugal and Centripetal Forces

Since the merger of P&C insurance subsidiaries in 2014, Sompo Holdings has worked to build a business foundation through a full entry into the nursing care business (2015), founding of SOMPO Digital Lab (2016), development of a global platform with the acquisition of Endurance (2017), etc. to realize “A Theme Park for Security, Health & Wellbeing.”

These transformation that have shaped the framework of today’s SOMPO were made possible by the matrix governance structure comprised of the Business Owner System and Group CxO System. The Business CEO who is the chief executive of a business is delegated great authority to drive the Group’s growth and expansion by developing business policies, accomplishing business plans, etc. while the Group CxO who has deep expertise in respective functional area is delegated authority to exert an influence over group-wide issues across business.

Business execution that combines the centrifugal and centripetal forces has driven transformation toward realizing a “Theme Park.”

Accelerating Governance Transformation

Sompo Holdings became a company with committees in 2019 and the Global ExCo and Managerial Administrative Committee (MAC) were established to accelerate transformation for realizing a Theme Park, building on the business foundation which had been established.

Through this governance reform, management oversight and business execution were separated and substantial authority was delegated to executives to establish an effective oversight and execution structure where the Non-Executive Directors with expert knowledge focus on management oversight and key management policy decisions.

The traditional way of running the executive committee which comprised mainly of Japanese members was revamped and the Global ExCo, the highest executive committee, was established. The Global ExCo drives SOMPO’s transformation as the members with different nationality and background discuss key challenges for the Group from a truly diverse perspective, share best practices, make decisions based on global information, not just about insurance.

This governance structure has formed the cornerstone of SOMPO’s transformation, such as the establishment of a new company with Palantir to realize the RDP vision, and realizing synergies toward creating a conglomerate premium.

The Group will continue to transform to realize “A Theme Park for Security, Health & Wellbeing” and pursue the best governance for sustainable growth.