Domestic P&C Insurance Business

As the domestic P&C insurance arm of Sompo Group, the business strives to provide products and services that achieve sustainable growth built on the trust of its customers and society.

Under the new Medium-Term Management Plan, which started in fiscal 2024, the basic strategy is to pursue uniqueness and resilience while striving for the trust of customers and society by steadily implementing business improvement plans under the slogan, Dedicated to the customers and society. This business model reform is being achieved through two pillars: initiatives that lead directly to improved financial performance by strengthening our earnings base, such as portfolio reform, sales reform, and insurance claims service reform; and initiatives that will lead to increased profitability over the medium to long term through strengthening our business foundation, such as reviewing our quality control and governance systems and transforming our culture. Each initiative is mutually dependent, in which competitiveness is strengthened by reforming the business base and the profits obtained from the improved earnings are reinvested in non-revenue earning business foundations, to realize a “new Sompo Japan Insurance Inc.”

In addition, as part of these “SJ-R” initiatives, we will optimize claims payments and improve productivity in claims services, pursue appropriate pricing and disciplined underwriting through the close cooperation of our sales and product divisions, to restore profitability, stabilize earnings and enhance our ability to respond to environmental change. Specifically, in addition to achieving a segment return on equity (ROE) of 8% or more and an E/I combined ratio* of below 95% by fiscal 2026, we have set targets to control typhoon risk, accelerate the reduction of strategic stock holding, and reduce the ratio of long-term policies, mainly in automobile insurance and fire insurance. By completing our SJ-R initiatives in the new Medium-Term Management Plan, we will achieve profitability and growth, and build a business that is not only profitable in an individual fiscal year, but also stable in earnings and agile enough to respond flexibly and in a timely manner.

In sales, we will abandon outdated industry practices and shift to a corporate culture focused on actions that contribute to quality improvement and which properly evaluates profitability measures. As well as reviewing the old business model, such as by eliminating dual structures with agencies, ending excessive support for client core business and reducing the number of strategic shares, we will improve productivity by consolidating office work, going paperless and promoting cashless sales.

By investing the time and resources generated through these initiatives in improving quality and strengthening expertise, we aim to provide high quality services consistently in the retail market, and to provide comprehensive risk solutions through specialization and enhanced expertise in the commercial market.

In Insurance Claims Services, “appropriate claims payments” and “customer satisfaction” remain our unchanging mission to ensure we remain our customers’ choice and deliver sustainable growth. To meet the expectations of all stakeholders, we are using advanced organizational design and digitalization initiatives developed by Sompo Sigorta to respond efficiently to accidents. We are working to review all claim service processes, including accident reception, initial response, repair shop referrals, fraud detection, and insurance payments, as well as strive to improve business efficiency, and strengthen fraud detection and appropriate payments by using digital technology.

Our organizational culture fosters and emphasizes compliance and customer protection. The establishment of a Chief Culture Officer (CCuO) and the Culture Transformation Department, are leading company-wide reforms and opportunities for management to engage in dialogue with employees nationwide that focuses on the core message of safeguarding what needs to be protected, changing what needs to be changed, fostering new values shared by all, and achieving a flat and open, healthy corporate culture.

By taking a customer perspective, we are building a system to promote business improvements through quality control. To achieve this, we have established a Chief Quality Officer (CQO) and Quality Management Department to improve customer evaluations. Additionally, we have established a new Quality Management Committee, which includes external members, and will work to improve quality by incorporating an external perspective. In addition, with regard to strengthening governance, we have shifted to a company with an Audit and Supervisory Committee, strengthened the supervisory function of the Board of Directors by separating supervision and execution through the appointment of outside directors, and by clarifying the mission (expected roles) and responsibilities and authority of our officers.

Even in an extremely complex and ever-changing environment, we believe it is important to correctly understand and act on the objective data we collect and organize to properly meet diversifying customer needs and values. To establish a new mindset for looking at and acting on data and to accelerate our transformation towards a “new Sompo Japan Insurance Inc.,” we will build a system for data utilization across the entire company, and improve the data literacy of employees via the newly established Data Management Department.

In addition, the IT transformation that will support the construction of this foundation, will optimize IT costs by rationalizing duplicate mission-critical systems and underutilized systems. We will also promote business automation and reforms, such as in insurance claims services, by taking advantage of the connectivity of these new systems.

Since it is our employees who create quality, we value and nurture our people, and are actively engaging in their development through human capital investments. Specifically, to support the transformation of the business and earnings base, we are strengthening mid-career recruitment and offering dedicated career paths for new graduates, and are expanding and updating the job-based personnel system to enhance further the expertise of our people such as through strategic rotation and other programs. We are shifting from a people portfolio centered on generalists, to a balanced portfolio including professional human resources.