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 transformations 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 his or her respective functional area, is delegated authority to exert an influence over group-wide issues across business. Building a business execution system that combines the centrifugal and centripetal forces in this way has driven transformation toward realizing a “Theme Park.”

Building on the business foundation which had been established, in 2019 Sompo Holdings transitioned to a company with committees and established the Global ExCo to accelerate transformation to achieve our Purpose. 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 outside directors with expert knowledge focus on management oversight and key management policy decisions.

In terms of execution, we established Global ExCo, the highest executive committee. At Global ExCo, members with different nationalities and backgrounds discuss key challenges for the Group from a truly diverse perspective, share best practices, and make decisions based on global information, not just about insurance. This is the driving force behind SOMPO’s transformation to achieve its Purpose.

This governance structure has formed the cornerstone of SOMPO’s transformation, such as the establishment of a global platform (P&C insurance) that will serve as the foundation for the Group’s growth and earnings and a new company with Palantir to realize the Nursing Care RDP “egaku.”

The realization of SOMPO’s Purpose is a long journey. Going forward, we will continue to transform ourselves to achieve this by building on a foundation of evolving governance.