Integrated Report 2020

The MS&AD Insurance Group s
Mission, Vision & Values

Our Mission
The Group s Raison d êtreTo contribute to the development of a vibrant society and help secure asound future for the planet, by enabling safety and peace of mind
through the global insurance and ﬁnancial services business.

Our Vision
The Group s aspirations for the medium term
To create a world-leading insurance and ﬁnancial services group thatconsistently pursues sustainable growth and enhances corporate value.

Our Values
The credo for all employees aimed at realizing
the Group s mission

CUSTOMER
FOCUS

INTEGRITY

Striving to provide security
and satisfaction to ourcustomers

Being sincere, kind and fairin our dealings with people

TEAMWORK
Growing together as a teamby respecting one anotherʼs
individuality and opinions
and sharing knowledge
and ideas

INNOVATIONPROFESSIONALISM

Always improving the way
we work while responding tostakeholdersʼ interests

Providing high-quality
services by constantly
enhancing our skills
and proﬁciency

Three Key Conceptsof the MS&AD Integrated Report 2020
Creating shared value withsociety through our corporate activities
The threat of the COVID-19 pandemic has shaken the global economy andﬁnancial markets and has had a huge impact on people s lives as well as
business activities.
Our mission as an insurance company that supports the sustainability of society
is to confront the various risks associated with social change and to help resolve
wide-ranging issues.
As lifestyles and values evolve into some sense of a New Normal, we will
strive to realize a resilient and sustainable society through the creation of sharedvalue (CSV) by remaining ﬁnely attuned to the voices of customers.

Corporate change that makes the most of diversity
The MS&AD Insurance Group comprises unique and diverse insurance andﬁnancial services companies.
The Group has worked diligently to create synergies while paying the utmost
respect to the values that each company has cultivated and utilizing individual
strengths and features.
Even in a rapidly changing environment, we are able to visualize new growthstrategies by combining the strengths of each company and applying a processof self-transformation.
Through strong solidarity, we will link innovation born of diversity to sustainablegrowth and increased enterprise value.

Making the most ofpartnerships with stakeholders
We are entering an era of uncertainty ﬁlled with a wide range of hidden risks.
Through dialogue and collaboration with various stakeholders, we can bring tofruition our ideal view of the future by addressing social issues that cannot be
resolved by conventional thinking alone.
To contribute to the development of a vibrant society and help secure a soundfuture for the planet, we will support social change through the power of
insurance and grow with society through partnerships with a diverse range ofstakeholders.

Contents
CEO Message

CEO Message ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・P.004

Special Report
Climate-Related Disclosure・・・・・・・・・・・・P.028
World Map of Natural Catastrophes in 2019 ・・P.033

Who We Are
Overview of MS&AD

The MS&AD Insurance Groupʼs Mission,
Vision & Values ・・・・・・・・・・・・・・・・・・・・・・・・・・・P.000
MS&ADʼs Story of Value Creation ・・・・・・・・・・P.012

Special Feature

Five Business Domains・・・・・・・・・・・・・・・・・・・・P.016

Creating Shared Value・・・・・・・・・・・・・・・・・P.066

MS&ADʼs Three Strengths:・・・・・・・・・・・・・・・・・P.018
Scale

CSV Initiatives
The Sustainability Contest 2019

History
Innovation
Stakeholder Engagement・・・・・・・・・・・・・・・・・・P.024

Our Way
MS&AD s Strategy

MS&ADʼs Path to Realizing
Our Image of Society・・・・・・・・・・・・・・・・・・・・・・P.034

10-Year Performance ・・・・・・・・・・・・・・・・・・・・・・P.052
Growth Strategies by Business Segment・・・・P.054

Toward Medium-Term Growth・・・・・・・・・・・・・P.036

Domestic Non-Life Insurance Business

Progress of the Medium-Term
Management Plan “Vision 2021”・・・・・・・・・・・P.040

Domestic Life Insurance Business

Financial and Capital Strategies・・・・・・・・・・・・P.044

Financial Services BusinessToward Sustainable Growth andAchieving Targets for Group Adjusted
ROE and Group Adjusted Proﬁt ・・・・・・・・・・・・P.048

International Business
Risk-Related Services Business
Asset Management Strategy・・・・・・・・・・・・・・・P.064

Financial and Non-Financial Highlights・・・・P.050

Our Platform
Management
Foundation

Appendix

Group Management Based on ERM ・・・・・・・・P.076

Corporate Governance・・・・・・・・・・・・・・・・・・・・・P.083

ERM and Risk Management・・・・・・・・・・・・・・・・P.077

Chairman's Message

Empowerment of Diverse Human Assets・・・P.079

Corporate Governance StanceOur Management Team
Message from an Outside Director

Basic Knowledge about theInsurance Industry ・・・・・・・・・・・・・・・・・・・・・・・・P.094
Glossary of Insurance Terminology・・・・・・・・・P.098

Data Section

Corporate Proﬁle・・・・・・・・・・・・・・・・・・・・・・・・・・P.104

Group Companies Data Sheets ・・・・・・・・・・・・P.119

Stock and Shareholders ・・・・・・・・・・・・・・・・・・・P.105
Group Business Schematic・・・・・・・・・・・・・・・・・P.107

Short Commentary:Group Financial Statements ・・・・・・・・・・・・・・・P.126

History of the MS&AD InsuranceGroup in Japan・・・・・・・・・・・・・・・・・・・・・・・・・・・・P.110

Performance Record・・・・・・・・・・・・・・・・・・・・・・・P.127
ESG Evaluation・・・・・・・・・・・・・・・・・・・・・・・・・・・・P.195

Group Network and History ofInternational Business・・・・・・・・・・・・・・・・・・・・・P.112

Third-Party Assurance・・・・・・・・・・・・・・・・・・・・・P.196

Credit Ratings ・・・・・・・・・・・・・・・・・・・・・・・・・・・・P.118

002

Explanation of Front Cover

Editorial Policy

Expressing universality andsustainability as well as high quality anda sense of trust, the stone structures
symbolize the corporate image to which
the MS&AD Group aspires, while theharmonious appearance of the golden
ratio is combined with the Groupʼsstrength, and diversity.

The MS&AD Group publishes the Integrated Report to provide customers, shareholders,investors and all other stakeholders with a deeper understanding of our initiatives aimed atsolving the challenges faced by society and at increasing corporate value throughout thebusiness. This Report was edited based on the International Integrated Reporting Frameworkprovided by the International Integrated Reporting Council (IIRC) and the Guidance forCollaborative Value Creation provided by the Ministry of Economy, Trade and Industry inorder to explain our business model-based story of value creation and the creation of sharedvalue with society (CSV initiatives) in an easy-to-understand manner.
Featuring a message from the new CEO, the MS&AD Integrated
Report 2020 explains the key strategies for advancing to the next
growth stage and the management foundation that underpins them.
The report also showcases the initiatives that are being undertaken
in collaboration with various stakeholders toward the achievementof our image of society.
For further detailed information, please visit the MS&AD ofﬁcial website.

MS&AD INSURANCE GROUP HOLDINGS

MS&AD Disclosure Framework
For further detailed information on the MS&AD Insurance Group, please refer to the information on the Companyʼs ofﬁcial website.

MS&AD Integrated Report

MS&AD Oﬃcial Website
About MS&AD Grouphttps://www.ms-ad-hd.com/en/group.html

CEO Message

Who We Are

Message from the CEO
Management platforms▶ CEO Message

Who We Are▶ Our Strengths▶ Company Information

Overview of MS&AD

What We Do▶ Management Plans and Policies

Special Report
Climate-Related Disclosure▶ MS&ADʼs Story of Value Creation

Our Platform▶ Risk Management○ Risk Management

https://www.ms-ad-hd.com/en/group/value/risk̲management/erm/risk.html

Special Feature○ Compliance

Creating Shared Value○ Information Management

https://www.ms-ad-hd.com/en/group/value/risk̲management/compliance.html
https://www.ms-ad-hd.com/en/group/value/risk̲management/information.html▶ Corporate Governance○ Corporate Governancehttps://www.ms-ad-hd.com/en/group/value/corporate.html

Our Way▶ Internal Control

MS&AD s Strategy▶ Disclosure and Information▶ Diversity & Inclusion

https://www.ms-ad-hd.com/en/group/value/diversity̲inclusion.html

Our Platform
Management Foundation

Sustainability

https://www.ms-ad-hd.com/en/csr.html○ Sustainability Reporthttps://www.ms-ad-hd.com/en/csr/report.html

Corporate Video

Data Section

Investors

https://www.ms-ad-hd.com/en/ir.html

INTEGRATED REPORT 2020003

CEO MESSAGE
Introduction

President & CEO

Noriyuki Hara

− The role of insurance in post-COVID society −The novel coronavirus pandemic (COVID-19), which in effect has become a battle
between humanity and the virus, has claimed many lives around the world whilechanging the way people live and their values. The global economy and ﬁnancial
markets have ﬂuctuated greatly, and issues attributable to widening inequalities
such as the spread of infections among the impoverished have become increasingly
marked with the burden placed on the medical supply system. As the structure ofsociety undergoes considerable change, we recognize the critical need to fulﬁll ourrole as an insurance and ﬁnancial services group that as a key component of social
infrastructure supports the lives of our customers while contributing to the stabilityof society.
With this in mind, and in particular following the Japanese governmentʼsdeclaration of a state of emergency, we have focused on protecting the health of
our customers and employees while continuing to carry out insurance operations,
including the payment of claims and insurance policy procedures. In speciﬁc terms,

004

MS&AD INSURANCE GROUP HOLDINGSCEO Message

Who We Are

Special Report

Our Way

CEO Message

MS&ADの全体像

レジリエントでサステナブルな社会へ

MS&ADの戦略

Special Feature

Our Platform

社会との共通価値の創造 企業価値創造を支える仕組み

we are utilizing digital technology to simplify insurance procedures and strengthen
Web-based support, expanding the scope of work that can be undertaken without
face-to-face interaction.
Meanwhile, we have initiated steps to provide products and services that meetthose needs that have arisen because of prevailing conditions. We have launched acomprehensive telecommuting compensation plan that covers a wide range ofcybersecurity and related risks, and hosted an online seminar on “Key Points forDeveloping a BCP to Address the Risk of Infectious Disease.” Especially in the caseof cybersecurity, the need for risk management is growing rapidly. By providing
cyber-related products that cover the full range of risk assessment, defense
measures and associated compensation, we are helping customers cope with andreducing the incidence of risks thereby contributing to the Groupʼs growth.
To prevent the further spread of the virus we have suspended events and businesstrips while switching to conference calls and online meetings. With employees working
remotely from home, we have also uncovered inefﬁciencies in our traditional
operations. Drawing on this experience, we will review our operations from the groundup and transition to a more productive business style. Moreover, we will put in place
the systems necessary for employees to engage in high-value-added and creative work.

Looking back on the past 10 years− Lessons learned from past experience −The MS&AD Insurance Group celebrated its 10th anniversary in ﬁscal 2020. At thetime the Group was created, the domestic non-life insurance industry was mired in
an extremely challenging environment. Buffeted by a succession of major natural
disasters including the Great East Japan Earthquake and the ﬂooding in Thailand
following the collapse of Lehman Brothers, our combined ratio exceeded 100%, an
indication that proﬁtability was negative.
Against this backdrop, and in the 10 years since our business integration, we
have worked diligently to strengthen our ﬁnancial soundness, improve the
proﬁtability of our domestic non-life insurance business and build a foundation forinternational business expansion. As a result, the domestic non-life insurance
business has become a stable revenue base, while proﬁtability in the domestic life
insurance business has continued to evolve, surpassing its industry peers. In
expanding our overseas business investments, we have also created a balanced
portfolio that encompasses Asia, the Americas and Europe, and taken positive steps
to form the foundation of a world-leading insurance and ﬁnancial services group.
Meanwhile, the ESR, an index of ﬁnancial soundness, has risen from 140% to 200%
and consolidated net premiums written have increased by around 1.4 times toapproximately ¥3.5 trillion. Taking these factors into account, we have grown to thepoint where we are now able to project the Groupʼs adjusted proﬁt at ¥300 billion
for ﬁscal 2021, up from around ¥50 billion‒¥60 billion before the Groupʼs
integration.
On the other hand, several large-scale natural disasters have occurred during
the period in question. We have also been forced to address a variety of grave andemerging risks, such as the COVID-19 pandemic. In every instance, employees haveworked in unison to confront each challenge head-on and taken all necessary steps
to uncover the right solution drawing on the Groupʼs collective wisdom andstrengths. The MS&AD Insurance Group has overcome each hurdle through a

Appendix

Data Section

補足資料

データセクション

Comprehensive
Telecommuting
Compensation Plan
MSI and ADI beganmarketing the“Comprehensive
Telecommuting
Compensation Plan” fromMay 2020, in response to thegrowing spread of
COVID-19, which triggered
the rapid introduction of
telecommuting. This plan
was designed speciﬁcally tocomprehensively address thevarious risks associated with
telecommuting. This
includes the risk of leaks due
to cyberattacks, damage ortheft of work-related PCs
and labor risks toemployees.

Key Points forDeveloping a BCP to
Address the Risk of
Infectious Disease
online seminar
MS&AD InterRisk Research& Consulting, Inc., hosts
online seminars that explain
the key points forformulating a BCP that
focuses on infectious
diseases, providing casestudies of corporate
responses to COVID-19.

ESR
ESR（Economic Solvency
Ratio）
A solvency ratio based on
economic value, ESR is anindicator of capital adequacywith respect to the risk
amount.
⇒See "ESR (credit level
99.5%)” (P. 47) for details⇒See the Special Feature:“Climate-Related
Disclosure” (P. 28) for
details

INTEGRATED REPORT 2020005

process of multifaceted change. Among a wide range of initiatives, we havestrengthened our catastrophe-prevention proposals, developed new products andservices, improved our risk-management techniques, and used the latest
technology to develop fast and efﬁcient claim payment methods. Drawing on our
experiences to date, we believe we have grown into an ever more resilient Group.

Medium-term management plan Vision 2021
− Becoming a world-leading insurance and ﬁnancial services group −Reviewing Stage 1⇒See “Progress of theMedium-Term Management
Plan ʻVision 2021ʼ” (PP.
40‒42) for details⇒See "'Vision 2021ʼ Stage 2
Overview" (P. 43) for details

006

MS&AD INSURANCE GROUP HOLDINGSThe MS&AD Insurance Group embarked on Stage 1 of its medium-term
management plan “Vision 2021” in ﬁscal 2018. During the four years of the plan,
our vision is to “become a world-leading insurance and ﬁnancial services group,” agoal that we have continued to advocate since our establishment, and to create“resilient systems that enable us to swiftly respond to changes in the environment”
in order to move to the next stage of growth.
In ﬁscal 2019, we completed Stage 1, the ﬁrst half of our medium-term management
plan Vision 2021, reaching three of the ﬁve indices that measure the degree to which wehave become a world-leading insurance and ﬁnancial services group. In speciﬁc terms, andfrom the perspectives of “scale,” “ﬁnancial soundness” and “ratio of risk assets,” we are wellon the way to realizing our vision. As far as the remaining two indices are concerned, ourGroup adjusted ROE and proﬁt from businesses other than the domestic non-life
insurance business currently stand at 8% and 46%, respectively. This falls short of our 10%
and 50% targets. Considering these levels, we have yet to achieve our goals for “capital
efﬁciency” and “portfolio diversiﬁcation.” Moving forward, we will continue to reinforce
efforts with an eye toward ﬁscal 2021, the ﬁnal year of the plan.
As the MS&AD Insurance Groupʼs core business, the domestic non-life
insurance business continues to maintain one of the highest premium growth rates
in the industry, mainly due to the strong performance of its mainstay automobile
and ﬁre insurance businesses. Our combined ratio, which is a key indicator ofunderwriting proﬁtability, also compares favorably with industry peers. As a result,
we have successfully achieved bottom-line growth better than initial plans after
excluding the impact of natural catastrophes. We recognize, however, that our
expense ratio continues to pose a considerable challenge. Looking ahead, we will
endeavor to dramatically improve productivity while streamlining operating
expenses through a process of digital transformation.
Turning to the domestic life insurance business, while our top line has declined inpart due to the worldwide fall in interest rates, the bottom line has essentially expanded
in line with plans owing to the development and provision of products and services thatmeet customer needs such as healthcare, nursing care, inheritance and gifting, andlongevity risks.
From an international business perspective, the recovery of proﬁts has unfortunately
been slower than initial plans. Under these circumstances, we took steps to reorganize
our international regional business from January 2020 in a bid to strengthen governancethrough the direct involvement of domestic specialized departments and accelerate thepace of global growth. In the future, we will leverage the strengths of Group companies
across regions and work to improve business efﬁciency while generating Groupsynergies under this new structure.

CEO Message

Who We Are

Special Report

Our Way

CEO Message

MS&ADの全体像

レジリエントでサステナブルな社会へ

MS&ADの戦略

Special Feature

Our Platform

社会との共通価値の創造 企業価値創造を支える仕組み

Appendix

Data Section

補足資料

データセクション

Toward Stage 2
Under Stage 2 of “Vision 2021,” we have lowered our numerical management target
for Group adjusted proﬁt by ¥50 billion to ¥300 billion for ﬁscal 2021. This reﬂects
such factors as the delay in securing a recovery in international business proﬁt anda rise in reinsurance premiums due to the high rate of natural disasters in Japan forthe second year in a row. However, buoyed by the efforts undertaken during Stage1, as well as the tailwind provided by the hardening of the reinsurance market, weare on track to achieve this new numerical management target, with the
improvement in proﬁt in the international business in sight.
In addition, we will create resilient systems that can respond swiftly to changes
in the environment by pushing forward our three key strategies under Stage 2 ofour plan.
In “pursuing the Groupʼs comprehensive strengths,” the ﬁrst key strategy, we
will make maximum use of the Groupʼs diverse human assets, customer base andoperating companies, review the division of roles by each Group company andstrengthen cooperation, engage in a variety of activities including the joint
development and standardization of products, and work to improve quality andproductivity. As a result of these efforts, we plan to reduce operating expenses by¥30 billion in Japan and overseas.
With an eye toward advancing the second key strategy, we will position thethree initiatives of digital transformation (DX), digital innovation (DI) and digital
globalization (DG) at the heart of efforts to “promote digitalization.” Under the DX
initiative, we will review operating processes across all areas and transition to ahighly productive business style. Through DI, we will make the most of digitaltechnology and the latest knowledge to build new business models. Driven by DG,
we will accelerate the pace of our global endeavors and, for example, roll out those
activities undertaken in each country to the rest of the world. Drawing on thesethree initiatives, we will dramatically enhance the value of customersʼ experienceand improve business productivity.
Finally, as a part of efforts to reform the portfolio, the third key strategy, we
will move away from an earnings structure that is dependent on the domestic
non-life insurance business and transform into a more balanced structure thatgenerates stable earnings from the international, life insurance and otherbusinesses. While targeting a 50-50 split of earnings between the domestic non-life
insurance business and other activities including the international and life
insurance businesses under Vision 2021, we expect
to fall slightly behind schedule in achieving this goal
due to the effects of COVID-19. We will, however,continue to vigorously pursue the reform of ourportfolio. Restoring the proﬁtability of MS Amlin is a
top priority for expanding earnings in theinternational business. In addition to ongoingmeasures aimed at improving the loss ratio of⇒See “Financial and Capital
strategies” (P. 44) for details⇒See “Growth strategies by
Business Segment:International Business” (P. 58)
for details

Global partnership with First Capital

INTEGRATED REPORT 2020

007

Paradigm shift
A revolutionary or dramatic
shift in the perceptions,
ideas and societal values
that were taken as a matterof course at a particular timeor in a particular ﬁeld.

general insurance risk and reducing costs, we are working to manage volatility due
to catastrophe and other risks while targeting a stable earnings structure. In Asia,
an area of geographic strength, we are conﬁdent in our ability to secure organic
growth on the back of established facilities and networks. A key that is critical to
our success in this endeavor is MS First Capital, which we acquired in 2017. The
company is distinguished by its outstanding underwriting ability and serves as amarket leader in large-scale infrastructure projects. Through the effective use ofreinsurance, MS First Capital also boasts considerable expertise in low-volatility
businesses that generate earnings through reinsurance commissions. Harnessing
this know-how, we will work to expand our business by leveraging synergies withother local companies throughout the region. At the same time, the shift toward
digitalization in Asia is expected to advance at an increasingly rapid pace. The
potential exists for a new business model to trigger an abrupt paradigm shift. The
MS&AD Insurance Group is already promoting digital initiatives in Asia. Our goal is
to seize the opportunity that a paradigm shift affords and to further ramp up thepace of growth.

Key management focus areas
Having assumed the position of CEO on the occasion of the Groupʼs 10th
anniversary, there are three focus areas that are of the utmost importance tomanagement. In speciﬁc terms, I believe that sustainability and innovation are
critical to management as MS&AD Insurance Group strives to become a rewarding
and professional company.

Sustainability − CSV initiatives based on the Story of Value Creation −⇒See the Special Feature:“Solving Social Issues
through Business” (P. 66) for
details

Kobe Model
Mitsui Sumitomo Insurance
has been entrusted with theadministration of theaccident relief system linked
to Kobeʼs dementia
ordinances. In this capacity,
the company has developed
Japanʼs ﬁrst comprehensive
three-pronged coveragescheme for dementia: 1)
accident relief (insurance),2) system expansion(encouragement of early
dementia testing) and 3)
accident prevention (GPStracking services by security
companies).

008

MS&AD INSURANCE GROUP HOLDINGS

Under “Vision 2021,” the MS&AD Insurance Group has identiﬁed “a resilient andsustainable society” as an image of society to realize and has set seven key
initiatives that the Group is working on to create shared value (CSV) with society.
To deepen employeesʼ understanding of the concept, the Group provides various
opportunities for employees to engage in CSV such as conducting the Groupwide
Sustainability Contest or occasional talks from management. Through thisengagement, our approach toward CSV and the Sustainable Development Goals(SDGs) is becoming more prevalent throughout the Group.
Ensuring that the promotion of CSV leads to Group growth is of criticalimportance here. Without this understanding, CSV will fall short as a sustainableendeavor. For example, the Group has concluded comprehensive cooperationagreements with 369 local government authorities with the aim of resolving issues
that are speciﬁc to each region. Frankly speaking, many of these agreements have
not yet contributed to the Groupʼs growth. What is important here is “criticalinformation,” “great sensitivity” and “collaboration with other companies.” Theability to resolve regional issues while at the same time securing Group growthrests largely on a comprehensive thought process that tackles such questions as:
What are the regionʼs issues? What solutions are available? What method will serve
to both uncover a solution and promote the Groupʼs growth? Will cooperation withother companies facilitate a result? For instance, the “Kobe Model,” which

CEO Message

Who We Are

Special Report

Our Way

CEO Message

MS&ADの全体像

レジリエントでサステナブルな社会へ

MS&ADの戦略

Special Feature

Our Platform

社会との共通価値の創造 企業価値創造を支える仕組み

promotes a dementia patient-friendly urban development, and the “Toyohashi City
Multicultural Society,” which encourages foreign residents to better understandJapanese trafﬁc rules and automobile insurance, have helped solve
community-speciﬁc issues and contributed to the development of the local
community while also leading to the Groupʼs growth.
Realizing that their efforts through CSV initiatives are leading directly to theresolution of social issues is also motivating employees. The younger generation, inparticular, tends to value social connections. In this sense, SDGs are great as
leading marks to move forward.

Innovation− Creation through a diversity and digital strategy −Appendix

Data Section

補足資料

データセクション

Toyohashi City
Multicultural Society
Aioi Nissay Dowa Insurance,
has teamed up with
Toyohashi City, home tonumerous foreign residents,
to hold training sessions on
trafﬁc safety education for
the Brazilian communitythat makes up the cityʼslargest segment of foreign
residents. The company ispreparing texts in
Portuguese that explain
Japanʼs trafﬁc rules andexpand on the need to sign
up for insurance.

⇒See “The Three Strengths
Digital technology is advancing at a rapid pace. The MS&AD Insurance Groupof MS&AD: Innovation” (P. 22)
launched a corporate venture capital (CVC) initiative in Silicon Valley in the United
for details
States in 2018 and has invested in a number of start-ups that are at the vanguard ofefforts to generate wide-ranging innovative and global change. At the same time,
the Group maintains ofﬁces in 50 countries and regions including Japan. Withunique and diverse partners and a wide-ranging network, we boast a wealth ofknowledge and data accumulated through business over a period of 127 years.
Harnessing this diversity, an inherent Group strength, and the cutting-edge
expertise including digital technology gained through investments in various
projects including start-ups through a multiplier effect, we are able to develop andprovide new products and services that are beyond the reach of other companies.
For example, digitalization continues to progress across every aspect of insurance
business operations. From sales by agents through sales administration to themaintenance of contracts as well as loss assessment and the payment of claims, theentire operating process has been transformed by digitalization to improvebusiness productivity. One such unique initiative is the MS1 Brain platform, which
utilizes AI to assist agents in their sales activities. Using AI, the MS1 Brain platform
serves as a tool to disseminate information and promote communication withcustomers, which has attracted high praise from agents. The platform provides
recommendations of products and services that match individual customer needs
with explanations through video and other materials.
Another initiative that only the Company can provide is RisTech, which
combines both customersʼ and the Companyʼs data to uncover risks and propose
solutions for customers. By analyzing vast amounts of data related to eachcustomerʼs business, RisTech helps to visualize risks
while, among other things, putting forward proposals
that allow for their mitigation from a new perspective.
Through this data business, we have established strong
ties of trust with customers while creating a virtuous
cycle that contributes to the insurance business.
Another distinguishing feature of the Company is
its insurance products and services that employ
telematics technology. In partnership with the Toyota
Group, we market telematics automobile insurance inJapan and overseas. Leveraging our strengths, we also
provide innovative products and services including
MS1 Brain: A partner, that supports
data analysis that employs telematics technology toagents through the power of AI

INTEGRATED REPORT 2020

009

CASE
This acronym stands forConnected, Autonomous(referring to automateddriving), Sharing and Services(car sharing and otherservices) and Electric (referring
to electric vehicles). Advocacyof CASE began as part of a
medium- to long-term strategy
drafted by German automaker
Daimler AG.

MaaS
Mobility as a Service (MaaS)
is a service that provides eachindividual with the means oftransportation that is optimalfor that person. By seamlessly
linking forms oftransportation ranging fromprivate automobiles to trains,
buses, taxis and bicycles,
MaaS provides total service inthe transportation space.

overseas insurance companies outside the Group. Arguably, the automotive
industry is now facing an era of tremendous change―a once-in-a-century period of
profound transformation. Moving forward, we will contribute to the developmentof mobility service for the next generation by responding to advanced technologies
such as CASE and MaaS. Moreover, we will take up the challenge of creating newvalue from the perspectives of peopleʼs lives and health as well as urban
development with a view toward realizing Smart and Super Cities. In addition, weestablished Global Digital Hubs (GDHs) in Tokyo and Singapore as venues forbusiness collaboration. Partnering with a company in Israel, we have worked to put
in place a platform for promoting digitalization. The objectives of this partnership
include creating an environment in which to acquire the latest knowledge while
establishing networks focusing mainly on the cyber domain. We strongly believethat the pursuit of innovation will serve as a springboard for the Groupʼs growth.

Employee engagement and professionalism in the workplace− Promoting women empowerment and global talent −Smart City
Refers to a new urban areathat employs advanced IoTtechnology to efﬁciently
manage and operate basic
infrastructure while taking
into consideration theenvironment with the aim ofenhancing peopleʼs quality oflife and ensuring continuous
economic development.

Super City
Refers to a city that utilizes AI,
big data and other advanced
technologies. The Super City
concept is designed to create anurban environment that places apremium on comfort. To thisend, the concept entails
leveraging the synergistic effects
generated by combining
advanced technologies acrossevery possible sector including
logistics, healthcare andeducation. Under this scenario,
we foresee the provision ofservices across such areas as
automated driving, cashless
payments, automated dronedeliveries and remote healthcare.
⇒See “Empowerment ofDiverse Human Assets” (P. 79)
for details

To link CSV and digital strategies to corporate growth, it is important for employees
to feel a sense of purpose and satisfaction while carrying out their duties in a
professional manner. With this in mind, the MS&AD Insurance Group is promoting
diversity and inclusion (D&I) as one key initiative to achieve this end.
In particular, we have continued to implement a variety of measures aimed atpromoting the career development of women. By conducting a broad array of
initiatives including level-speciﬁc training programs, “unconscious bias” lectures
for managers, telecommuting and ﬂexible working hours, progress is being madein the promotion of women to management. Looking ahead, the MS&AD InsuranceGroup will upgrade and expand environments and programs that allow women to
excel, while increasing the share of management positions occupied by women.
In similar fashion, we recognize the critical need to develop global talent.
Educating Japanese employees to have a global mindset while at the same timeallowing foreign employees overseas to excel are both key to accelerating the paceof international business expansion. With this in mind, we are advancing a variety
of initiatives. In addition to helping overseas ofﬁces gain a better understanding of
the Groupʼs Mission, Vision,
Values and Story of Value
Creation on the ground, weare conducting interactive
training programs that linkpersonnel in Japan toemployees overseas. We havealso set up the Global Linked
Growth Strategy Task Force, ajoint initiative between the
Companyʼs headquarters andoverseas subsidiaries.

Participants in the MS&AD Garage Program

010

MS&AD INSURANCE GROUP HOLDINGSCEO Message

Who We Are

Special Report

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CEO Message

MS&ADの全体像

レジリエントでサステナブルな社会へ

MS&ADの戦略

Special Feature

Our Platform

社会との共通価値の創造 企業価値創造を支える仕組み

Making the most of diverse human assets, including women and global talent,helps to generate a wealth of beneﬁts. When a wide range of opinions clash andconverge in a diverse group, it provides the impetus for uncovering new business
opportunities and fueling innovation. In making the most of diversity, the MS&AD
Garage Program implemented in Silicon Valley is extremely effective. Under thisprogram, an employee of a Group company brings a speciﬁc business issue to
Silicon Valley and deliberates with start-up companies with a view to ﬁnding asolution. Even if a solution cannot be found, the employee will have gained
invaluable experience. Start-ups in Silicon Valley are distinguished by the ﬂexibilityof their ideas and innovation. They also possess a totally different sense of speed.
Start-ups are assertive when presenting their views and extremely clear in what
they need to do. Gaining a feel for this Silicon Valley approach is a source ofconsiderable inspiration. The experience gained through the Program will open
entirely new perspectives and ultimately help resolve a host of issues. I believe that
we can continue to grow as a world-leading insurance and ﬁnancial services groupif employees maintain a professional mind-set and carry out their duties to thehighest global standards.

Appendix

Data Section

補足資料

データセクション

MS&AD
Garage Program
Under this program,
employees from Group
companies worldwide travel
to Silicon Valley to meet
individually with start-up
companies and pursue
opportunities including thepitching of ideas. Having
failed in each home country,
the goal is to uncoveradvanced technologies andnew business models that
can help resolve outstanding
issues.

In a new society
In modern society, the business environment is constantly changing as risks growlarger and more complex and new risks emerge. While the current pandemic
caused by COVID-19 is a notable example, both Japan and the world haveexperienced a series of major natural disasters over three successive years since2017. This is a clear demonstration of how serious global environmental issues are,issues that are having an extremely big impact on our business.
Against this backdrop, collaboration with a diverse range of partners is vital toresolving each social issue. We believe that one key to successful collaboration ismutual understanding, respect for each otherʼs raison dʼêtre and a common visionof the future in which to resonate. When listening to advanced global ﬁrms, all havea clearly deﬁned purpose. I believe that when partners who share this belief andhave the same challenges come together and share their expertise, they can
uncover the clues necessary to resolve difﬁcult problems.
In that sense, our Mission and the story of value creation which embodies itwill take on even greater signiﬁcance in working together with stakeholders. By
expanding the CSV initiatives that underpin our Story of Value Creation fromregions to the entire country, from Japan to overseas, from Group companies to theGroup as a whole, while promoting collaboration with partner companies thatshare the same challenges, we are conﬁdent in our ability to help realize a resilientand sustainable society.

⇒See “Stakeholder
Engagement” (P. 24) for
details⇒See “MS&ADʼs Story ofValue Creation” (P. 12) for
details

We will forge ahead together with our stakeholders and leverage the Groupʼsstrengths of diversity and combined power to create a better society.

INTEGRATED REPORT 2020011

Who We Are
Overview of MS&AD

MS&AD s Story of Value Creation
Contribute to the Development of a Vibrant Society andHelp Secure a Sound Future for the Planet
The MS&AD Insurance Group was formed with three groups of insurance companies being
integrated with the mission to contribute to the development of a vibrant society and help secure asound future for the planet, by enabling safety and peace of mind through the global insurance andﬁnancial services businesses.
To realize our vision of society, we need to face those social issues that impede this vision andpromptly identify various risks stemming from the issues. Then, through a variety of products andservices, we need to prevent risks from occurring or minimize the impact of those risks and to
reduce the economic burden when those risks materialize. By doing so, we help create anenvironment where customers can live and conduct business in a secure manner. That is our storyof value creation.

Bringing Vision to Reality
Major social issues that
the Group can help resolve

Rapid Social Change

Climate Change

Detriment to Natural
CapitalDeclining Birthrate andAging Population

012

MS&AD INSURANCE GROUP HOLDINGSTechnologicalInnovation

Growing Population /Widening Inequalities

1

Diversiﬁed/large-scale accidents
and disasters

2

The global environment approaching
its limit (e.g. climate change anddepletion of resources)

3

Mounting burden of nursing/
medical care associated withan aging population

4

Decline in social vitality due towidening inequalities

CEO Message

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Overview of MS&AD〈 Approach toward resolving social issues 〉

Identify andinform on risks

Prevent risks
from occurring/
minimize
the impact

Reduce theeconomic burden

Creating Shared Value(CSV initiatives)

Our Image of Society in 2030

▶ Deal with new risks▶ Create a safer mobility society▶ Strive for resilient community development▶ Support

good health and longevity▶ Contribute to climate change mitigation and adaptation▶ Strive to improve the sustainability of natural capital▶ Work toward the realization ofleaving no one behind

Resilient andSustainable
Society

INTEGRATED REPORT 2020

013

The MS&AD s Story of Value Creation
Contributing to the Development
Helping Secure a Sound Future

Resources Supporting MS&AD

Social Issues

We are utilizing the diverse resources of the Group sbusiness activities as the impetus to create new value.
(FY2019)

Financial Capital●Suﬃcient and sound ﬁnancial base enabling
the underwriting of customers risks¥2,494.0 billion

Consolidated net assets

Diverse risks surrounding society
1 Diversiﬁed/large-scale accidents
and disasters
Global environment approaching its limit
2 (Climate change and depletion of resources, etc.)
Mounting burden of nursing/medical
3 care associated with aging population
4 Decline in social vitality due towidening inequalities

Human Capital●●

Global and diverse human assets
Professional human assets with sophisticatedexpertise related to insurance, risks, etc.

MS&AD sBusiness Model

41,582

Consolidated number of employees

Intellectual Capital
Expertise and trustworthiness supported
by a lengthy history and experience● Most abundant risk data in Japan and the ASEAN region
●

1,312

Number of risk surveys conducted

Reduce theeconomic burden

Social and Relationship Capital●

No. 1 in the scale of its customer base in Japan43 million
Approx. 2.4 million
Approx.

Number of individual
customers in Japan
Number of corporate
customers in Japan

Identify andinform on risks● No. 1 in gross premiums written in the ASEAN region●

No. 1 in the size of its agent network in Japan

84,676
Domestic
258 branches/999 oﬃces
marketing bases
Domestic claims handling service centers
419
Overseas bases
50 countries/regions
Number of domestic
non-life insurance agents

Prevent risks
from occurring/
minimize
the impact

1

2

●
●

3

Relationships with leading companies in other sectors
including the Toyota Group, the Nippon Life Group, theMitsui Group and the Sumitomo Group

1. Simple sum of the number of bases at domestic insurance companies (as of April
1, 2020)
2. Simple sum of the number of claims handling service centers at domestic non-life
insurance companies (as of April 1, 2020)
3. Includes SLI Cayman Limited (ﬁnancial services business) in the Cayman Islands(as of April 1, 2020)

Systems Supporting

Natural Capital
Stable global climate system● Conservation of biodiversity in nature● Sustainable natural resources
●

●

014

Amount of paper used

MS&AD INSURANCE GROUP HOLDINGS

11,080 tons

Resilient systems
that can respondto a changing
environment

Optimum resource
allocation andappropriate
risk management

Medium-Term
Management Plan

ERM

▶ P. 40▶ P. 76

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Overview of MS&AD

of a Vibrant Society andfor the Planet

Creating Value in Partnershipwith Stakeholders（see P. 24）

Our goals are to create social value together with our
stakeholders through the output of our business activities.

Resilient andSustainable Society

Customers

Shareholders

Employees

AgentsBusiness Partners(results for FY2019)

Financial Capital

Stability in people s lives
Dynamic business activities

Increase capital eﬃciency
Increase Group Adjusted Proﬁt Group Adjusted
Proﬁt● Returns to shareholders●

233.1 billion¥●* Total Shareholder Return (TSR)
is the ratio calculated by
dividing the return (dividends
and capital gains) on
investments in stocks over a
speciﬁed period by the shareprice (investment amount).

Provision ofsafety andpeace of mind

Environment

Local Communities/International SocietyGroup Adjusted
ROE

8.0%

TSR＊ of past
5 years

8.5%

Human Capital
Provide working environments that oﬀer greater amenities andsupport personal growth● Provide employment that is stable and gives due consideration
to work-life balance●of paid vacation
4.4 points Days
used per employee/year

Employeesatisfaction level1

Global insurance /ﬁnancial services business

Five Business Domains

Financial▶ P. 60
Services Business

International Business

Domestic Non-Life▶ P. 54
Insurance Business

Risk-Related▶ P. 62
Services Business

P. 58

Domestic Life
▶ P. 56
Insurance Business

15.7

2

1. This measures the level of employeesʼ feeling pride or job satisfaction. (Theﬁgure is an average for all employees based on a survey of employees‒6 points
represents perfect satisfaction.)
2. Average number of vacation days acquired by all employees with respect to“regular/carryover vacation days” as well as “special vacation days”

Intellectual Capital
Foster the development of employees with high levels of
specialized expertise● Provide products and services that respond to changing anddiverse customer needs● Provide society with risk-related surveys and research results●

Research reports issued1

85

111

Number of actuaries2▶

1. We issued reports on diverse subjects including CSR, corporate risks, BCM,
workersʼ compensation risks, transportation risks, overseas crisis management
information and infectious disease information.
2. Number of professional actuaries employed by MS&AD Group with specializedskills for making full use of probability, statistical and other mathematicaltechniques used in product development, risk management, ﬁnancial
soundness conﬁrmation and other processes (as of April 1, 2020)

Social and Relationship Capital
Disburse insurance payment of claims and beneﬁts
appropriately and speedily● Provide services to prevent accidents and disasters from occurring● Provide a high-quality and diverse agent network● Fulﬁll corporate social responsibility through cooperative
relationships with business partners● Provide products and services that protect such social capitalas social infrastructure, government services, etc.
●

Insurance
claims paid1

Corporate Value Creation
Management platforms
that enable employees
to play active roles

Strengthening
corporate
governance

Human Asset
Development

Corporate Governance▶ P. 79▶ P. 83

2,403.8 billion Customer
satisfaction

¥

2

96.5％

1. This represents the sum of net claims paid and life insurance claims.
2. Ratio of customers satisﬁed with accident response for automobile insurance(MSI and ADI)Natural Capital
Reduce CO2 emissions to slow the pace of climate change
Contribute to the conservation of biodiversity● Reduce the environmental burden to allow sustainable use ofnatural resources●●

Employees participating in social contribution activities＊

27,673* Number of employees who make donations or participate in volunteer activities
as an individual or part of the company(excluding employees overseas).

INTEGRATED REPORT 2020015

Five Business Domains
Harnessing the distinguishing features of each Group company, every eﬀort is being made to provide
a wide range of products and services to address diversifying risks and meet customer needs.

Domestic Non-Life Insurance BusinessNo. 1 position in the domestic non-life insurance market, making group-wide eﬀorts tocomprehensively meet diverse customer needs▶ P. 54

Features Comprehensive capabilities and global business development
Products Product development that creates social value in response to customer needs

Features

With a focus on innovation, diversity, close relationships with local communities;
striving to become a unique company with its own distinctive character
Products Innovative product development as a pioneer in the ﬁeld of telematics insurance

Features Professional claims handling (accident response) based on smartphones
Products Easy-to-understand products and services and reasonable premiums

International BusinessAn overseas network covering 49 countries and regions＊No. 1 in terms of non-life gross premiums written in the ASEAN region▶ P. 58* Excluding the Cayman Islands, where SLI Cayman Limited (ﬁnancial services business) is located. (As of April 1, 2020)

Financial Services Business
Leveraging the full range of its capabilities as an insurance and ﬁnancial services group to provide
new ﬁnancial products and services▶ P. 60

MITSUI SUMITOMO INSURANCE Venture Capital Co., Ltd.
MS&AD Loan Services Co., Ltd.

Risk-Related Services Business
Creating synergies with the insurance business by deploying global risk solution services▶ P. 62

MITSUI SUMITOMO INSURANCE Care Network Co., Ltd.
Fureai Do-Life Services Co., Ltd.

MS&AD Group companies that support the ﬁve business domains

016

MS&AD Business Support Co., Ltd.

MS&AD Systems Co., Ltd.

MS&AD Staffing Service Co., Ltd.

MS&AD Business Service Co., Ltd.

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Domestic Life Insurance Business▶ P. 56

Leveraging the distinctive strengths of two group companies in protection-type andasset-building products

Products Protection-type products
As Japan increasingly becomes a super-aged society, there is a growing need for medical/nursing
care products as well as death beneﬁt and other protection-type products
Sales channels
The Group has developed diverse sales channels centered on cross-selling through the agents of the Groupʼs two core
non-life insurance companies, ﬁnancial institutions, professional life insurance agents and direct sales personnel

Products Asset-building and asset-inheritance products
Suitable to the diversiﬁcation of customer needs as Japan increasingly becomes a super-aged society,asset-inheritance products that can be used for inheritances or living donations and asset-building
type insurance products
Sales channels
Over-the-counter sales by ﬁnancial institutions (e.g., banks, securities companies)

Others 1

Financial Services Business

12.7% ¥29.6 billion

Risk-Related Services Business

2.1% ¥4.8

billionInternational Business

21.2% ¥49.4

billionDomestic Life Insurance Business

12.7% ¥29.7

billion

FY2019Group Adjusted Proﬁt 2¥233.1 billion

Domestic Non-Life Insurance Business

51.3% ¥119.5

billion

1. Including net decrease in income taxes paid during the ﬁscal year due to the effects of reorganization of the international business of MSI.
2. See the “Glossary of Insurance Terminology” (P. 99) for details.

INTEGRATED REPORT 2020

017

MS&AD s Three Strengths: Scale
As a world-leading insurance and ﬁnancial group, we have successfully secured suﬃcient
capacity to meet the needs of customers worldwide.

▶Fortune Global 500: 2019 Income Ranking

Group-wide

IncomeCompany/Group Name

5

No.
among
non-life insurancegroups in the world(US$ million)

1

Berkshire Hathaway＄247,837

2State Farm Insurance Cos.

＄81,7323

People s Insurance Co. of China＄75,3774

Munich Re Group＄67,226

5

MS&AD Insurance Group Holdings＄49,610

6

Tokio Marine Holdings＄49,396

7

American International Group＄47,3898

Zurich Insurance Group＄47,180

9Nationwide＄43,270＄42,685

10 Liberty Mutual Insurance Group

Note: Ordinary income basis for Japanese insurance groups
Source: Fortune Global 500 2019 Insurance Property & Casualty (Stock + Mutual)

Domestic Non-Life Insurance Business
The insurance group most chosen by customers in Japan■ Share of Net Premiums Written* (FY2019)■ Underwriting Proﬁt (prior to reﬂecting catastrophe reserves)*(¥ billion)

No. 1 share

Othersin all lines ofbusiness in Japan

13%

Company B
Group

26%

MS&AD

¥8,609.4
billion33%■ MS&AD

250

200

150

100

■ Company A Group203.1■ Company B Group

173.0

125.6

118.0

128.3

133.9

127.4
76.8

75.7

41.8

50

9.4
0

Company A
Group

28%

Sources: Prepared by MS&AD based on publicly announced
information from each insurance company and data fromthe General Insurance Association of Japan.
* MS&AD ﬁgures are the simple sums of ﬁgures for MSI, ADI,
Mitsui Direct General and au Insurance Company* Figures for other insurance groups are simple sums of
non-consolidated ﬁgures for domestic companies in each group.
* Figures are presented exclusive of the Good Results Return
premiums of Mitsui Sumitomo Insuranceʼs proprietary“ModoRich” automobile insurance product, which contains a
special clause for premium adjustment and refund at maturity(same hereinafter).

018

MS&AD INSURANCE GROUP HOLDINGS

-16.9
-50

-12.7

-27.7

-44.6
FY2015FY2016FY2017FY2018FY2019Source: Prepared by MS&AD based on publicly announced information from each
insurance company* Figures for MS&AD are the simple sum of the non-consolidated ﬁgures for MSI
and ADI; For the others, the simple sum of the non-consolidated group ﬁgures
excluding the direct insurance companies of each group.

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Domestic Life Insurance BusinessNo. 9 in premiums income among domestic life insurance companies/groups■ Domestic life insurance companies/groups
premiums and others ranking (FY2019)■ Net income of life insurance companies under
the three major non-life groups(¥ trillion) (¥ billion)40
5.50

Company C Group

3.85

Company D Group
Company F

2.59

Company G Group

2.30

Company H

2.26
1.82
1.74

Company I
Company J Group

1.48

MS&AD Group

1.41

Company K Group34.4■ Company L■ Company M

3.24

Company E■ MS&AD G

30

23.9
14.7
11.6

No. 9

among
28 companies
and groups

100

Source: Prepared by MS&AD based on publicly announced informationfrom each insurance company*Figures for “Group” are calculated based on the non-consolidated
sums of each group company.

FY2015

27.3

25.2

20

8.7 8.3

27.8
16.5

15.3

15.5

FY2016

34.2

31.2

8.1

FY2017FY2019FY2018Source: Prepared by MS&AD based on publicly announced informationfrom each insurance company

International BusinessNo. 1 in gross written premiums (non-life) in the ASEAN region
With global business expansion to 49 countries andregions, especially in Asia, and as the worldʼs only global
non-life insurance group with a presence in all 10 ASEAN
countries, the Group maintains the No. 1 presence forgross written premiums in the ASEAN region.

MS Amlin, a member of the Group, is a principal
player of signiﬁcant size as a managing agent＊ with
Lloydʼs of London＊, the worldʼs most inﬂuential
insurance market.

■ Positioning in the non-life insurance market in
ASEAN and Asian countries (FY2018)■ Lloyd s syndicate Gross Written
Premiums ranking(£ billion)

FY2018 Gross Written Premiums Ranking in ASEAN Countries
No. 1 MS&AD No. 2 Company N No. 3 Company O

No. 1

in gross written
premiums in
the ASEAN region

South Korea 4th1
PR China

3rd1
Taiwan 5th

India

8th1

Sri Lanka

MyanmarHong Kong 14th

Laos

4th2

Thailand

5th

Macau
Vietnam 16th
Cambodia
Malaysia

2nd

4th
2nd

BruneiSingapore

2.4

Company Q

2.1

MS Amlin
Underwriting Limited

2.0

Company R

2.0

Company S

1.9

Company T

1.8

Company U

1.7
1.5

Company V
Philippines

1stIndonesia

ASEAN
Countries

Company P

4th

13th

Source: Prepared by MS&AD based on publicly announced corporate informationfrom each country and region (reinsurance companies excluded)
1. Ranking for foreign-based insurance companies
2. Because data for FY2018 was not publicly available, the FY2017 ranking for
Laos is shown

Company W

1.3

Company X

1.2

Source: Lloydʼs Annual Report 2019
Based on gross written premiums for FY2019* See the “Glossary of Insurance Terminology”(P. 100) for details.

INTEGRATED REPORT 2020

019

MS&AD s Three Strengths: History
With a wealth of data and knowledge accumulated over more than 100 years of history and experience, and drawing
on the trust and expectations of customers, we are endeavoring to secure sustainable growth for the next 100 years.

Past experience and lessons are the seeds of the future
Expertise and trustworthiness supportedby 127 long years of history and experience

Robust customer and marketing basefounded on long-term relationship building▶ Greatest accumulation of risk related data in Japan and▶ Partnerships with leading companies in other sectors,

the ASEAN region▶ Expertise and data acquired through experience withthe large natural disasters to dateincluding the Toyota Group, the Nippon Life Group,
the Mitsui Group and the Sumitomo Group▶ Partnerships with insurance agents and insurance brokers
supported by long-standing relationships of trust

1934:
Started direct underwriting in Thailand as the ﬁrst Japanese insurer
Mitsui Fire &Marine Insurance Co., Ltd.

Shin Nihon Fire & Marine Insurance Co., Ltd.
Taisho Marine & Fire Insurance Co., Ltd.
(established 1918)(merged 1944)(merged 1941)

Osaka Insurance Co., Ltd.

Mitsui Marine &Fire Insurance Co., Ltd. (1991)(established 1943)(established 1920）(merged 1942)(established 1893)

Osaka Marine & Fire Insurance Co., Ltd.
Osaka Fire, Marine & Transport Insurance Co., Ltd.
Osaka Fire Insurance Co., Ltd.

Settsu Marine Insurance Co., Ltd.

Osaka Sumitomo Marine &Fire Insurance Co., Ltd.
(merged 1944)

Sumitomo
Marine & Fire Insurance Co., Ltd. (1954)

SettsuMarine & Fire Insurance Co., Ltd.

(established 1919)

Fuso Marine Insurance Co., Ltd.

Sumitomo
Marine & Fire Insurance Co., Ltd.

(established 1917)

Fuso Marine & Fire Insurance Co., Ltd.
Toshin Fire Insurance Co., Ltd. (established 1920)

Dai-Tokyo Fire Insurance Co., Ltd.

1976:
First in the industry to handle auto
claims in an integrated manner forcompulsory automobile liability
insurance and automobile insurance(merged 1944)

Dai-Tokyo
Fire & Marine
Insurance Co., Ltd.

Tokyo Movable Property Fire Insurance Company(established 1918)

Otaru Cargo Fire Insurance Co., Ltd.

Fukoku Fire & Marine Insurance Co., Ltd.

(established 1897)

Okura Fire & Marine
Insurance Co., Ltd.

Nisshin Fire & Marine
Insurance Co., Ltd.

(merged 1944)(merged 1943)

Okura Chiyoda Fire & Marine Insurance Co., Ltd.

(established 1911)(merged 1945)

ChiyodaFire & Marine
Insurance Co., Ltd. 1959:

Nihon Kyoritsu Fire Insurance Co., Ltd.
Naniwa Fire Insurance Co., Ltd.

(established 1910)

Chiyoda Fire Insurance Co., Ltd.

Reinforced the relationshipwith Toyota Motor
Corporation(established 1913)

Chitose Fire & Marine Reinsurance Co., Ltd.
(established 1920)

Chiyoda Fire &Marine Insurance Co., Ltd.

Nissay General Insurance Co., Ltd.
(established 1996)(merged 1942)

Yokohama Fire & Marine Insurance Co., Ltd.
(established 1897)

Kyodo Fire & Marine Insurance(established 1906)

Kobe Marine & Fire Insurance Co., Ltd.
(established 1907)

Asahi Marine & Fire Insurance Co., Ltd.
(established 1918)

Dowa Fire & Marine Insurance Co., Ltd.
(merged 1944)

1975:
Leading the industry as a pioneer inspace insurance, such as developmentof third-party liability insurance for
artiﬁcial satellites for the launch of
KIKU, Japan s ﬁrst satellite
Mitsui Mirai Life Insurance Co., Ltd.
(established 1996)

Sumitomo Marine Yu-Yu Life Insurance Co., Ltd.
(established 1996)

Dai-tokyo Shiawase Life Insurance Co., Ltd.
(established 1996)

Chiyoda Kasai Ebisu Life Insurance Co., Ltd.
(established 1996)

020

MS&AD INSURANCE GROUP HOLDINGS

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Network of trust built over a long history
in the Asian region

110 years of experience and resultsin the Lloyd s insurance market▶ First▶ FirstJapanese non-life insurance company to start
direct underwriting in Thailand, in 1934
▶ Operations have expanded along with growth in the
ASEAN region, ultimately achieving the No. 1
position in the region in terms of scale

2000:
Established Lloyd s syndicate
as the ﬁrst Japanese insurer

Mitsui Sumitomo
Insurance Co., Ltd.
(merged 2001)

2005:
Acquired Taiwan-based Mingtai
Fire and Marine Insurance
ranked No. 2 in the Taiwanese
insurance industry

2004:
Acquired the whole Asian non-life
insurance business of U.K.-based, Aviva(making us the largest in the ASEAN
region)2004:
Developed Pay As You Drive(PAYD) type auto insurance for
Toyota cars

Japanese non-life insurance company toenter the Lloydʼs insurance market in 2000
▶ Acquisition of Amlin, founded in 1903, at the
Lloydʼs insurance market in 2016

Mitsui Sumitomo
Insurance Group Holdings, Inc.
established in 2008

MS&AD InsuranceGroup launched in 2010

Nissay Dowa
General Insurance Co., Ltd.

Aioi Nissay Dowa
Insurance Co., Ltd.

(merged 2001)

2016:
Acquired U.K.-based
Amlin, ranked No. 2
at the Lloyd sinsurance market

2017:
Acquired First
Capital, ranked
No. 1 in Singapore(inaugurated 2010)

Mitsui Direct General
Insurance Co., Ltd.

(inaugurated 2000)

Aioi Life Insurance Co., Ltd.

2019:
Invested in IKBZ Insurance,a major private non-life
insurance company inMyanmarMitsui Sumitomo
Insurance Co., Ltd.

Mitsui Direct General Insurance Co., Ltd.

(merged 2001)

2018:
Invested in ReAssure,
U.K.-based closed book＊life insurance business2017:
Capital participation in
Challenger, the largest
provider of individual annuity
insurance in Australia(merged 2001)

Mitsui Sumitomo Kirameki Life Insurance Co., Ltd.

2013:
Started reorganization
by function

MS&AD
Insurance Group Holdings

Aioi Insurance Co., Ltd. (merged 2001)

2001:
Promoted the Life and
Non-Life Comprehensive
Insurance Strategy using
the Nissay Insurance
Account as a platform

Mitsui Sumitomo Insurance Co., Ltd.,
Mitsui Sumitomo Kirameki Life Insurance Co., Ltd.,
Mitsui Sumitomo MetLife Insurance Co., Ltd., andMitsui Direct General Insurance Co., Ltd.,
became subsidiaries of MSIGHD.

Mitsui Sumitomo Aioi Life
Insurance Co., Ltd.

2015:
Acquired U.K.-based
Box Innovation Group,a leading telematics
automobile insurer

2019:
Developed atelematics damage
service system,
an accident response
service that uses
connected car
data with Toyota
Motor Corporation2018:
Launched ﬁrst driving
behavior-based telematics
auto insurance for
Toyota s connected cars(inaugurated 2011)

Mitsui Sumitomo Primary Life
Insurance Co., Ltd.
(name changed in 2011)

Mitsui Sumitomo
CitiInsurance Life Insurance Co., Ltd.
(started 2002)

Mitsui Sumitomo MetLife Insurance Co., Ltd. (2005)*The closed book life insurance business is a type of life insurance whereby a company purchases
and acquires policies in force held by other life insurance companies instead of acquiring new
policies on their own.

INTEGRATED REPORT 2020

021

MS&AD s Three Strengths: Innovation
Born of diversity, a Group characteristic, is the power of our ideas and creativity. We use
these to generate new solutions that are a step ahead of a society in transition.

RisTech

CDO Message「Risk」
×「Technology」

The use of big data and the latest analyticalalgorithms enables the visualization andoptimization of the risks that surround acompany and the new services that will facilitate
solutions to issues.
Finding solutions to theissues confronting customers
・Control of risks facing customers, aquick recovery and a bolsteredresponse in case of an incident,
contributing to reduced costs and ahigher top line

Data collection
ValuecreationGroup CDO

Shinichiro Funabiki

Spurred on by the spread of COVID-19, behavioral changes are emerging
throughout society, such as companies promoting working from home anda rising number of contactless interactions. The MS&AD Insurance Groupalso is taking such measures, including telecommuting and having online
meetings. We view this response to the crisis as a turning point for atransformation that is creating a new business style based on
digitalization. Our aim is to concurrently achieve both greater productivity
and higher competitiveness. An example of this is the creation of a system
whereby a customer uses a personal smartphone to buy insurance, andthen receives service, all without face-to-face contact. This sort of systemrepresents a sea change, going from a personal meeting and visitation typeof business to that of a touchless, paperless, cashless style driven by adigital transformation.
In addition to telematics, cybersecurity and other changes to existing
businesses, the advance of digital innovation is leading to initiatives thatcreate new businesses. Here we introduce two such businesses on which
we are focusing our efforts.
The ﬁrst is the construction of a digital insurance sales platform,
through which we collaborate with EC operators and others to offer
customers a one-stop way to sign up for peripheral insurance products
while in the process of purchasing products and services. From obtaining
insurance policies to their payment, end-to-end digitalization of theprocess realizes smooth and highly ﬂexible provision of insurance. This
represents the new market we are aiming to create.
The second is Risk Technology = “RisTech.” This is a service thatprovides the risk analysis or reports, as well as the risk models, to aid in
ﬁnding solutions to the issues that face corporate business partners. In
addition to utilizing internally held data such as on policies and accidents,
data scientists leverage various external data, including that held by those
corporate business partners themselves. Looking ahead, together withoffering this service to numerous corporate business partners and having
the insights gained through this lead to the development of new insurance
products and services, we will endeavor to aid in ﬁnding solutions to those
problems affecting society, such as preparations for increasingly
large-scale natural disasters or contributing to regional transportation.

022

MS&AD INSURANCE GROUP HOLDINGS

Grow the valueof insurance

Deepeningcustomerunderstanding

・Subdivision of risk
・New services as a vehicle
・Dynamic pricing
to obtain new(ﬂuid rate changes,
Data
information (quantity
compensating only utilization quality), strengthened
the operating
customer relationships
amount)and obtaining customer
・New risk
information throughcompensation
meetings

Overseas experience
Gaining exposure to
cutting-edge technology in
Silicon Valley

Securing human assets
Bringing together humanassets with formidable
digital skills and hiring as
industry-ready resources

Developing human assets
Developing our proprietarylearning programs bycollaborating with
universities

Group
diversity

Who We Are

CEO Message

Special Report

Our Way

Special Feature

Appendix

Our Platform

Data Section

Overview of MS&AD

Telematics

Multidimensional cybercountermeasures

Positioning telematics technology as a linchpin, we willtake action to work with CASE, MaaS and othercutting-edge technologies and business models, andstaying a step ahead of these, will work to realize a safe
and secure mobility society and super cities.

“Risk diagnosis, protection-to-response and, in line with
that, compensation” provided coherently and inaccordance with needs and the latest technologies basedon domestic and international networks̶cybercountermeasures that only the Company can provide.

Beyond Mobility

Problem-solving based on unprecedented andinnovative services and technology

Connected
Autonomous

Data business

Telematics
Shared/Service

Mobility as
a Service

Maintaining
the digital
infrastructurethat supports
lifestyles

MS&AD
GarageMS&AD
Ventures

IsraelFintTLV/SOSA

Smart city/
Super city

MS&AD
Insurance Group
Cyber Liaison Meeting

Electric

Topics, namely the“Pain Point,” are takenfrom a wide range ofmarkets anddeliberated upon

Cyber Study Group
comprising
members from academia
and diﬀerent industries
Problem-solving
through discussions on
traditional andestablished cybercountermeasures

Contributing
solutionsto socialissuesBusiness process reform
Utilizing digital tools such as chatbots and RPA

Joint product development
Joint development by linking life andnon-life insurance within the Group

Creation of
innovation intune withthe times

Strengthening Group adhesion
A scheme to link problem-solving
solutions in automotive, cyber,
health management and other ﬁelds

Acquiring external
insights and networks
Open
innovation

Global tie-up 1
Collaboration with Israel-based innovation promotion company

Creativity and synergies

Global tie-up 2
Investment in start-up company through our CVC in Silicon Valley, U.S.

Industry, government, academia collaboration
We work together with a wide range of organizations, including
universities, regional authorities, ﬁnancial institutions and NGOs

INTEGRATED REPORT 2020023

Stakeholder Engagement
The MS&AD Insurance Group has various systems to facilitate communication with our stakeholders and is
working to incorporate stakeholder feedback into the Group s management strategies. By communicating withstakeholders, we work to establish trustworthy quality and management platforms for society. Working
together with stakeholders to create shared value for society also will lead to the realization of Our Mission
and Our Vision throughout the entire Group.

Our
To contribute to the development of a vibrant society and help secure a sound future for the planet,Our
To create a world-leading insurance and ﬁnancial services group that

Attitude toward Stakeholders

Communication with Stakeholders

The credo for all employees aimed at realizing
the Groupʼs Mission

Trustworthy Quality andManagement Platforms

Our Values

CUSTOMER
FOCUS

INTEGRITYTEAMWORKINNOVATIONPROFESSIONALISM

Quality Improvement
Basic Policies on Corporate GovernanceTo realize our Corporate Philosophy (Mission), the MS&AD Insurance Groupwill create shared value and aim toward a resilient and sustainable society
through corporate activities that implement the “Story of Value Creation.”
We will consistently strive for supreme quality that lives up to the trust andexpectations upon us. Together with our stakeholders, we continue tocontribute to the creation of a society where anyone can pursue a stable lifeand boldly engage in dynamic business activities, while preserving thesustainability of the global environment and society.

Sound Organizational
Management

Basic Policy on Compliance
We intend to achieve Our Mission by ensuring compliance in every aspect ofour corporate activities and by establishing corporate ethics.

Respect for Human Rights

Basic Policy for Responding to Customer Communications
Based on Our Mission, we will respond to all customer communications quickly,
appropriately and in good faith while promoting initiatives in accordance with our
Values to contribute to the improvement of customer satisfaction.

Basic Policy on the Environment
Based on Our Mission, we regard the environment as a part of its corporate
strategy. Having established mitigation of and adaptation to climate change,
the sustainable use of resources, the reduction of environmental burden andthe conservation of biodiversity as Key Issues, the Group is advancing efforts inthese areas including human rights in line with its Standards of Conduct.

Improvements(Products/Services/BusinessProcesses)

Basic Policy on Human Rights
We are committed to enhancing the corporate value and contributing to thecreation of a sustainable and resilient society through behavior that takes
into account interaction with the environment and society including humanrights in all business activities, with the aim of realizing Our Mission.

Strategic Approach for Sustainability
We consider sustainable issues, such as the environmental, social andcorporate governance (ESG) factors associated with all of our business
transactions, including the development of products and services,
underwriting and investment.

024

MS&AD INSURANCE GROUP HOLDINGS

Understanding, Analysis andExamination of Content

CEO Message

Who We Are

Special Report

Our Way

Special Feature

Our Platform

Appendix

Data Section

Overview of MS&AD

Mi s si on
by enabling safety and peace of mind through the global insurance and ﬁnancial services business

Visi onconsistently pursues sustainable growth and enhances corporatevalue

Engagement with Stakeholders
Shared Value

Impact on Capital

Customers

Strong relationships with customers

Financial capitalwith sustainablegrowth foundation

Shareholders

Improvement in medium- tolong-term corporate value
Human capitalcomprising diverse
professional skills

AgentsMutual growth as a business partner

Business Partners

Value creation throughout the supply chain

Employees

Employee pride and achievementof Our Mission

Local Communities
International Society

Cooperation and collaboration
through partnerships

The Environment

Improvement of our Planet's sustainability

Intellectual
capital that creates
future innovation

Social/relationshipcapital that aims forcollective impact

Protect and nurturenatural capital byacting together

INTEGRATED REPORT 2020025

Customers

Communications with Stakeholders

Shareholders

026

AgentsBusiness
Partners

The Group s Attitude

Basic Policy and Fundamental Activities

To realize “customer security andsatisfaction,” all employees put into
practice the “Customer Focus” statedin Our Values, extensively listen to
customer feedback and work to
improve quality.

Actions put into practice based on the “Basic Policy for Responding toCustomer Communications” and “Customer-First Policy in Business
Operations”● Respond promptly, appropriately and sincerely to customer feedback,and utilize that feedback in a variety of measures to enhance quality
and improve customer satisfaction.
● Ensure that each and every employee conducts business operations
with a high sense of values that adhere to the “Customer-First Policy.”● Provide products and services that address new risks and diversifying
customer needs.

We will actively engage inconstructive dialogue withshareholders for the Groupʼssustained growth and enhancementof its medium- to long-term
corporate value and will endeavor to
generate further corporate value by
utilizing such dialogue in managing
the Group.

Through highly transparent information disclosure, the MS&AD InsuranceGroup seeks to reduce information asymmetry with shareholders andinvestors. The feedback gained from the constructive dialogue withshareholders and investors is shared with management and the relevant
departments to be utilized in the formulation of management strategies.
● The Corporate Communications and Investor Relations Department,
which assists with shareholder dialogue, and various other departments
within the Group, and efforts to expand means of dialogue● Measures for providing senior management and the Board of Directors
with feedback regarding shareholder dialogue● Measures concerning control of insider information during shareholder dialogue

By maintaining effective
communication with agents and by
thinking and acting together withthem, we aim to offer high-quality
service and optimal insurance
products to our customers. In thisway, we also encourage the Group
companies and agents to growtogether.

Possessing the value of “Customer Focus,” underpin The Group's agents'
provision of high-quality services that fulﬁlls our accountability to ourcustomers and support the strengthening of the management platforms.
● Further strengthen communication with agents by providing support tovarious initiatives aimed at bolstering the agent organizationsʼ growthand contributions to various local and social contribution activities● Dedicated full-time staff members with expertise provide overallmanagement support to agents through training and one-to-one
meetings● Promotion of agent quality certiﬁcation system to motivate agentsʼ
quality improvements

While considering compliance,
respect for human rights and naturalenvironment, we will act as acompany that meets the
expectations of society with our
supply chain.

Putting into practice actions based on the basic policies of compliance,
human rights and the management of outside vendors● Comply with all laws and regulations relating to business activities;
implement sincere, fair and just business activities that meet the
expectations and demands of society● Activities and dialogue that respect human rights, including the value chain● Conﬁrmation and regular inspection of personal information
management systems, management soundness, etc.
● Procurement in which consideration is given to the use of sustainable resources● Requesting cooperation in consideration for the natural environment as
part of the ISO 14001 initiatives

Employees

Positioning initiatives that support
implementation of the Story ofValue Creation, We are working
human assets development and on
diversity and inclusion as sources of
the Groupʼs comprehensive strength.

Local Communities
International Society

Toward the realization of a “resilientand sustainable society,” we and our
stakeholders will together protect
the global environment and thesustainability of society andcontinue to contribute to a vibrantsociety.

The Environment

While striving to reduce our own
environmental impact, we will
promote improvements in thesustainability of our Planet from theperspective of long-term risk
through the risk solutions business.

MS&AD INSURANCE GROUP HOLDINGS

Establishing a management base that enables employees to play active roles
Promoting diversity and inclusion to establish a corporate culture that
respects diversity and diverse values● Aiming for our vision of ideal employees, who will continue to develop by learning,
thinking by themselves and taking on challenges, providing environments that are
conducive to work and opportunities to develop with a sense of enjoyment● Creating workplaces in which consideration is given to health and safety toenable each and every employee to implement health management while
maintaining and improving their physical and mental health●

Actions put into practice based on our “Basic Policy on the Environment”
and our “Strategic Approach for Sustainability”● Through participation in initiatives, understanding diversifying
sustainability issues and implementing actions together
Paris Pledge for Action
UN Global Compact (UNGC )▶ United Nations Environment Programme Finance Initiative (UNEPFI )(Principles for Sustainable Insurance [PSI], Natural Capital Finance
Alliance [NCFA])▶ Principles for Responsible Investment (PRI)▶ Task Force on Climate-related Financial Disclosures (TCFD) Final Report▶ Japan Climate Initiative ( JCI)
▶ Principles of Financial Action toward the Formation of a Sustainable
Society (21st Century Principles of Financial Action)▶ Japan Business Initiative for Biodiversity (JBIB)▶
▶

Local revitalization initiatives
Donation matching gift system in the aftermath of a disaster● Promotion of collaborative research with universities on social issues
and the global environment● Support for employee participation in environmental protection
activities●●

CEO Message

Who We Are

Special Report

Our Way

Special Feature

Our Platform

Appendix

Data Section

Overview of MS&AD

Shared Interests/
Expectations

Communication Channels

Citing of a Speciﬁc Example

Client surveys
Annual reports on the status of the“Customer-First Policy in Business Operations”
efforts (by each Group company)● Claims service contact center● Ofﬁcial Website● Communication with agents and employees (e.g.,inquiries, consultations, requests, complaints)

Utilizing the LINE communication
application, we have developed amechanism that facilitates prompt
requests for road service
arrangements.

For institutional investors/analysts(Meetings to explain management strategy [twicea year], result brieﬁng conference calls [fourtimes], exchange of opinions [once])● Brieﬁngs for individual investors (18 times)● ESG brieﬁng/exchange of opinions (once)● Theme-based small meeting (once)● Meetings for analysts/investors from Japan andoverseas (193 times)● Survey at the Annual Shareholdersʼ Meeting
Note: FY2019

In December 2019, we held an ESG
brieﬁng session for institutional
investors and analysts at which we
showcased the Groupʼs ESG efforts
and provided an opportunity forexchanges of opinions with outside
directors.

Study sessions to acquire knowledge about therisks surrounding customers, claims support,
products and services● Regular polite interactions/one-to-one meetings
with attention to detail● MS1 Brain agent sales support system● Dialogue with agent organizations with the aim ofgrowing together

MS1 Brain is an industry-ﬁrst,
AI-powered agent sales support
system that provides optimal
proposals to meet the needs ofeach and every customer throughdata analysis by means of AI.

Communications with outside vendors（Procurement in which consideration is given to theuse of sustainable resources）● Regular inspections of outside vendors (approx.
2,800 companies)● Human rights due diligence

Engaging in green purchasing, weare reducing the environmental
burden through our value chain. In
collaboration with a cafeteria
operator, we are promoting a
reduction in the use of plastic
straws and the introduction ofsustainable seafood.

Employee awareness survey (implemented once a
year on a global basis)● Based on suggestions for improvements, a posting
system under which each head ofﬁce department
examines the suggestions and feeds back its results● Speak-up (whistleblowing) system that enables
personnel to report or seek a consultation aboutsuspected violations of laws and regulations, violations ofcompany regulations or inappropriate behavior(Number of cases reported: 164)
● Communication with management

To further instill Our Mission, Our
Vision and Our Values, anawareness survey targeting
domestic and overseas employees
was conducted. Overseas, wecreated and distributed videos
focusing on action guidelines.

Collaboration agreements with local governments(374 agreements)● Communication with NPOs/NGOs● Communication/exchanges with local communities● Holding of seminars/symposiums

As the Chair of the Japan BusinessInitiative for Biodiversity (JBIB),
every year we hold a symposium
called Business Talking Biodiversity,
at which companies discuss whatshould be done to improve thesustainability of the natural capital.

Communication with experts and NPOs/NGOs● Exchanges with researchers relating to the global
environment and natural disasters● Participation in initiatives and international
conferences● Employee participation in environmental andsocial contribution activities (27,673)● Holding of seminars/symposiums

In cooperation with the Indonesian
government, a tropical forest regeneration
project has been under way in the Paliyan
Wildlife Reserve on the island of Java since2005. The MS&AD Group is encouraging
reforestation and the forming of asustainable community through therevitalization of the local economy byoffering guidance on planting andcultivating trees to local residents andthrough environmental education.

●●

Relationships of trust with customers
Trust in products/services
Address customersʼ diverse needs●

Sustainable enhancement ofcorporate value
Engagement enhancements throughconstructive dialogue
Initiatives to improve shareholder value

Strengthening of agent system/
quality improvements
Promotion of independence/
self-running operation
Productivity improvements
Improvements in sales and market
development capabilities

Thorough compliance
Respect for human rights
Consideration for thenatural environment

●

●

●

Corporate culture that respects diverse values
Work environment where people cancontinue working indeﬁnitely
Providing opportunities to enable everyone
to play an active role●

Climate change mitigation andadaptation
Sustainability of natural capital
Building resilient communities●

INTEGRATED REPORT 2020027

Special Report
Toward a Resilient and Sustainable Society

Climate-Related Disclosure

Because climate change has a signiﬁcant
impact on society and industry, we recognizethat disclosing the impact of climate change
on business activities is essential for thestability of society and the ﬁnancial system.
The MS&AD Insurance Group endorses
the Task Force on Climate-Related Financial
Disclosures (TCFD) and promotes thedisclosure of ﬁnancial information.

Governance
Climate-Related Internal Control
To achieve a “Resilient and Sustainable Society,” the MS&AD Insurance Group is tackling climate change mitigation andadaptation through Creating Shared Value (CSV) initiatives.
Promotion and monitoring of these initiatives is discussed by the Board of Directors, the Group Management Committee
and Task-Speciﬁc Committees.
The Board of Directors discusses and determines important matters such as management strategies and capital policies
including climate-related matters and supervises the execution of duties by Directors and Executive Ofﬁcers.
The Group Management Committee discusses important matters such as management policies and strategies that include
the recognition of climate-related issues and initiatives, and monitors the execution of tasks by Executive Ofﬁcers.
Climate-related issues and progress with initiatives are reported to both the Board of Directors and the Group Management
Committee after discussions primarily by the Sustainability Committee and Risk Management Committee (respectively fourtimes annually).
The CFO, receiving reports on climate
Decision Making
related updates and information from the
Execution of Tasks
and SupervisionCorporate Planning Department, operates theSupervision
Sustainability Committee, which discusses
Board of Directors
Group Management Committee
initiatives and plans. The Chief Risk Ofﬁcer,
receiving reports on climate-related risks
Reporting
Reportingfrom risk management departments, operates
the Risk Management Committee, whichmonitors risk, return, capital and the status of
Task-Speciﬁc Committees
risk management, and discusses andSustainability Committee
coordinates important matters.
Chairman of the Board, Executive Vice Chairman,
Holdingsʼ Executive Ofﬁcer, Director in charge of
Sustainability, Director in charge of Diversity & Inclusion, Outside Director (1 person)

Risk Management Committee
Holdingsʼ Executive Ofﬁcer, Chief Information
Security Ofﬁcer (CISO)

028

MS&AD INSURANCE GROUP HOLDINGS

Administrator

CFO
Administrator

CRO

CEO Message

Who We Are

Special Report

Our Way

Special Feature

Our Platform

Appendix

Data Section

For a resilient and sustainable society

Strategy
Strategy: Climate-Related Risks and Opportunities
Climate change poses risks in such areas as rapid social and economic changes resulting from the increasing scale of natural
disasters and the transition to a carbon-free society.
While ensuring ﬁnancial soundness and stable proﬁts, the Group undertakes duties of insurance claims for damage caused
by natural disasters such as typhoons and ﬂoods in the form of insurance payments. At the same time, we are pursuing
initiatives for disaster prevention and mitigation both in Japan and overseas.
In addition, we are contributing to the realization of a resilient and sustainable society by promoting efforts to support thedevelopment of new technologies to reduce the risk of climate change and efforts to reduce the environmental impact of ourbusiness activities.

Climate-Related Risks
Sometimes damage from natural disasters such as typhoons becomes huge and increases the amount of insurance payouts. If the impact
of climate change worsens major natural disasters, there is a risk that insurance payments will be large. The Group prepares for suchpayments through reinsurance, catastrophe bond arrangements and maintaining appropriate catastrophe reserves.
In ﬁscal 2019, the common reinsurance special contracts newly entered into by Mitsui Sumitomo Insurance and Aioi Nissay Dowa
Insurance worked effectively, and we were able to secure stable proﬁts for the ﬁscal year.
We will continue to control the retained amount of natural catastrophe risk, considering the effects of climate change, while
securing the capital necessary to maintain ﬁnancial soundness.
We are also promoting reform of our business portfolio by expanding earnings in the international and life insurance businesses.
Through the geographic and business diversiﬁcation of these businesses, we are working to build a more stable earnings base andincrease resilience to large-scale natural disasters.
In addition, in preparation for frequent natural disasters, we are utilizing digital technology to build a system that allows customers
who have suffered damage to receive insurance payouts as soon as possible. We have also started a new loss survey method using drones
and AI.

Akibare Re 2020-1 catastrophe bond
Mitsui Sumitomo Insurance, via Singapore-domiciled special-purpose company Akibare Re Pte. Ltd. in March 2020 issued catastrophe bondAkibare Re 2020-1 (issue amount US$100 million), which will provide MSI with protection against typhoon risk and ﬂood risk in Japan.
The frequency of large-scale natural disasters is raising uncertainty for the reinsurance market. Therefore, it has been decided to issue the bondto secure long-term stable cover by diversifying reinsurance procurement methods while reducing its net retained risk amount.

In addition to the occurrence of natural disasters, the Group recognizes that climate change could havethe following medium- to long-term effects.
Changes in weather such as little rain, drought and reduced water supply
Tightening environmental regulations and progress of technological innovation to tackle the advance and impact ofclimate change● Increase in litigation related to environmental disasters● Increases in reinsurance premiums due to frequent natural disasters and growth in the scale of such disasters● Increase in the incidence of heat stroke and infectious diseases due to rising temperatures● Changes in the industrial structure aimed at realizing a carbon-free society● Deterioration in investment returns in sectors affected by rising carbon prices and reduced demand for fossil fuels●●

While recognizing increasing risks in such areas, we are monitoring their impact on the Groupʼs business and utilizingthem in our business strategies. We have also started dialogue with investee companies on the impact of climate-relatedrisks on business activities.

INTEGRATED REPORT 2020029

Climate-Related Opportunities
Based on the MS&AD Groupʼs Story of Value Creation, we have been promoting Creating Shared Value (CSV) initiatives under our
medium-term management plan “Vision 2021” from ﬁscal 2018. We have positioned “contribute to climate change mitigation andadaptation” as one of our seven key CSV initiatives.

1

Identify and inform on risks

Addressing climate change is an important issue for sustainable business development, and we are analyzing the medium- to long-termrisks of climate change. The Group also provides risk consulting services related to climate change and support for the formulation ofstrategy and information disclosure.
Free provision of the website “Prediction Map Showing Changes in Flood Frequencies”“Climate change risk analysis service” that assesses and analyzes the physical risks related to climate change and the business risks
associated with the transition to a decarbonized society. In June 2020, we began offering, in partnership with Jupiter Intelligence of theUnited States, the “Climate Change Impact Assessment Service for TCFD,” a global climate change impact assessment service.
● A service for the analysis and evaluation of future water-related risks (e.g., water depletion, water pollution, ﬂoods)●●

2

Prevent risks from occurring/Minimize the impact

Physical risks such as extreme weather and natural disasters will increase as the average global temperature rises. We are striving toprovide information and risk consulting services to prevent or minimize losses when these risks become reality.
We offer a “Weather Information Alert Service” that provides weather information relating to customersʼ speciﬁed businesslocations and sends out alert e-mail messages.
● Our smartphone app “Suma-Ho Disaster Navigator” helps users to remain safe and secure during large-scale natural disasters.
●

Initiatives to use RisTech for disaster prevention/mitigation
Mitsui Sumitomo Insurance, in partnership with Accenture, provides a new service, RisTech, to assist companiesʼ accident andnatural disaster prevention and mitigation. With this service, data scientists carry out data analytics utilizing big data and the latest
analysis algorithms. The service supports disaster prevention through advanced data analysis. This includes determining optimal
evacuation routes by combining meteorological data such as river water levels and data accumulated through insurance
underwriting such as rates of damage by building structure and estimated damage in the event of a large-scale disaster.

Launch of a real-time loss prediction website cmap.dev, which
predicts the number of buildings damaged due to typhoons, heavy
rains and earthquakes
As one of our joint research efforts, Aioi Nissay Dowa Insurance, Aon Group Japan Co., Ltd.,and Yokohama National University launched the worldʼs ﬁrst 1 loss prediction website“cmap.dev ” in June 2019. This forecasts the number of damaged buildings and damage
ratios in the event of a natural disaster from typhoons, heavy rain or earthquakes in real time for each municipality.
Simulation results of past natural disasters and weather information around the world are also available. 2 In addition, from
June 2020, a function was added that predicts in real time projected damage to buildings before a typhoon makes landfall.
1. Aioi Nissay Dowa Insurance survey, June 2019
2. The service is available to the public for free and can be viewed 24 hours a day, 365 days a year from devices such as PCs or smartphones.

3

Reduce the economic burden when risks materialize

It is the mission of insurance companies to promptly cover customersʼ ﬁnancial losses in the event of a natural disaster and to help them
restore their lives and resume their businesses. To fulﬁll that mission, we are working to provide products that meet the needs of ourcustomers.
We have been promoting ﬂood and earthquake preparedness activities to explain to customers the risks of water disasters and earthquakes and prepare them for natural disasters by encouraging them to reappraise the risks they face.
● We sell weather derivatives to lessen the ﬁnancial losses due to unseasonable weather.
● We are one of the underwriters for natural disaster risk under a natural disaster insurance facility established to provide reconstruction funds promptly to affected countries/regions in cases when natural disasters of a certain scale occur in Paciﬁc Island and Caribbean countries.
● We provide insurance for renewable energy including mega-solar and small-scale wind power projects.
● We provide accident prevention and maintenance support for efﬁcient power generation by diagnosing the business and maintenance risks of renewable energy.
●

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MS&AD INSURANCE GROUP HOLDINGSCEO Message

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Appendix

Data Section

For a resilient and sustainable society

Scenario Analysis
Strategic resilience in diverse scenarios
The TCFD recommends scenario analysis, which analyzes the impact ofclimate change on businesses based on future scenarios.
Our initiatives are as follows.

●●

We have been participating in a project led by the United Nations Environment Program Finance Initiative (UNEP FI),
with more than 20 signatory insurance companies of the Principles for Sustainable Insurance (PSI), from its inception.
The project is working on the development of scenario analysis methods for insurers. With reference to the latest
climate science and looking at future time frames such as 2030 and 2050, development of analysis methods forassessing the impacts of typhoon physical risks are discussed.
We have also begun calculating our own carbon footprint and carrying out scenario analyses of our asset management
portfolio.

Risk Management
Appropriate management of identiﬁed risks(ERM cycle for climate-related risks)
The MS&AD Insurance Group has established the MS&AD InsuranceGroup Risk Management Basic Policy. The policy identiﬁes the principal
types of risk with an impact on the Groupʼs business. Based on the ERM
cycle, those risks are managed in light of capital and balance with
proﬁtability.
In addition, climate-related risks are reported to and discussed at
the Risk Management Committee and then reported to the Board of
Directors and the Group Management Committee.
Formulates strategies basedon the Group Risk Appetite
Statement● Identiﬁes large-scale natural
disasters in Japan andoverseas as material risks for
the Group and formulates aManagement Action Plan
● Identiﬁes climate change asa Group Emerging Risk●

Planning
phase

Monitoring
phase

Monitor the status of natural
disasters and the Groupʼscapital conditions● Consider countermeasures
based on monitoring results●

Execution
phase●

Implement risk taking within
the range of the appropriate
amount of retained risk

INTEGRATED REPORT 2020

031

1

Managing natural-disaster-related risks

With respect to risk relating to windstorms and ﬂoods in Japan and the United States, we set theupper limit (risk limit) of the amount for Group companies based on the losses that can occur
with a probability of once in 200 years. In addition to risk measurement of natural disasters andstress tests of large-scale natural disasters, we are undertaking studies on methods ofincorporating the effects of climate change into stress tests and methods of quantifying theeffects of climate change.

Stress tests
When various stress events occur, we conduct stress tests to conﬁrm the effects of various stress events on capital and risk amounts.
In the stress tests, to complement the limitations of risk measurement by statistical methods, we select scenarios based on information about theGroupʼs portfolio and risk characteristics and on signiﬁcant changes in the external environment. In this way, we identify the vulnerability of theportfolio and conﬁrm the necessity and urgency of countermeasures.

2

Controlling the retained amount of natural catastrophe risk

We assess the risk amount using statistical methods by region and disaster. Based on this assessment, we maintain decent underwriting,arrange reinsurance, issue catastrophe bonds and provide catastrophe reserve. Through these measures, we are working to improve theﬁnancial soundness of the entire Group and to reduce the variable risks of periodic proﬁt/loss.
●

Lower natural catastrophe retention on a Group-wide basis●●●

Lower natural catastrophe retention including that for windstorms and ﬂoods in the United States
Strengthen management of the proﬁtability of the reinsurance business

Reduce the risk of proﬁt ﬂuctuations

In addition to respective reinsurance coverage of Mitsui Sumitomo Insurance and Aioi Nissay Dowa Insurance for domestic natural
catastrophes, we arrange for joint reinsurance treaty coverage shared by the two companies that covers annual aggregate losses. By suchmeans, we are reducing the risk of proﬁt ﬂuctuations. This functioned effectively with respect to the occurrence of domestic natural
disasters in ﬁscal 2019, and we have organized the same level of reinsurance in ﬁscal 2020.
We are promoting dialogue with investee companies to promote climate-related information disclosure. We are also considering
dialogue methods for sustainability issues including climate-related issues.

Metrics and Targets
Establishing metrics and targets for managing risk
As a monitoring indicator for our contribution to climate change mitigation and adaptation, the Group has prioritized Creating
shared value (CSV initiatives). The results of these approaches are being reﬂected in the performance-based compensation of
the companyʼs internal directors.
〈 Related Information 〉

1

Creating shared value (CSV initiatives) metrics

We have set monitoring indicators for development and improvement of products
related to our contribution to climate change mitigation and adaptation. We
calculate the economic impact on the Company and the impact on society from our
CSV initiatives. The results of these approaches are being reﬂected in theperformance-based compensation of the companyʼs internal directors.

2

Metrics and targets for initiatives to reduce the environmental
burden through business activities

The Group is working to reduce the environmental impact of its business activities
by using reduction rates for total energy consumption and for CO2 emissions asmonitoring indicators.
Our aim is to reduce CO2 emissions by 30% by 2020 and by 70% by 2050.
In ﬁscal 2019, the reduction rate for total energy consumption was 33.4% andthe reduction rate for CO2 emissions was 20.7% (versus the base year of ﬁscal 2009).
We are striving to reduce total paper consumption and contribute to thesustainable use of natural resources.
In addition, we have started measuring the carbon footprint (CO2 equivalentgreenhouse gas emissions from business activities) of investee companies and havebegun studying the utilization of this information.

032

MS&AD INSURANCE GROUP HOLDINGSGroup Management Based on ERM
ERM and Risk Management

PP. 76-78

Impact of natural catastrophes
on underwriting proﬁt

P. 126

CO 2 emissions and totalenergy consumption

P. 51

Initiatives to strengthen ESG
investment

P. 65

Reduce CO2 emissions under
the Scope 1, 2 and 3

Sustainability
ReportCEO Message

Who We Are

Special Report

Our Way

Special Feature

Appendix

Our Platform

Data Section

For a resilient and sustainable society

World Map of Natural Catastrophes in 20191
Climate change is said to be aﬀecting recent extreme weather events including powerful typhoons, hurricanes, torrential
rainfall, droughts and heat waves throughout many parts of the world. The scale of each disaster is also increasing,causing damage in countries around the world that far exceeds previous expectations.
The MS&AD Insurance Group has helped its customers mitigate economic losses caused by major disasters throughthe payment of claims, supporting the restoration of business activities and the livelihoods of people around the world.

EMEA 1

EuropeMarch

StorrmInsured loss2
MS&AD s net
incurred loss3

APAC 2Japan
September¥130.6 billion

Insured loss２¥0.03 billion

MS&AD s net
incurred loss5

0.02%

MS&AD s share4

Typhoon Faxai¥653.0 billion

Insured loss2¥979.5 billion¥ 48.1 billion

MS&AD s net
incurred loss5¥ 45.9 billion（¥465.6 billion）

7.37%

MS&AD s share4

Flooding¥ 435.3 billion

Insured loss2
MS&AD snet incurred loss3
MS&AD s share4

Storm

Insured loss

2

MS&AD snet incurred loss3
MS&AD s share4

Insured loss2¥0.26 billion

MS&AD snet incurred loss3

Flooding

Insured loss

2

MS&AD snet incurred loss3
MS&AD s share4

Tornado¥88.7 billion

EMEA 3

Europe (Spain)
September

May

June

¥71.3 billion¥0.0 billion

0.00%

MS&AD s share4

APAC 3

China

Flooding

Insured loss

2

MS&AD snet incurred loss3
MS&AD s share4¥0.0 billion

0.00%

Americas 2

USA

0.29%

4.68%

（7.87%7）

Americas 1

May to July

June（¥582.6 billion）

MS&AD s share4（10.33%7）

EMEA 2Typhoon Hagibis

October

USA

EuropeAPAC 1

Japan¥391.8 billion¥0.11 billion

0.03%

USA and the Caribbean

Americas 3

September

Hurricane Dorian¥70.7 billion

Insured loss

¥381.0 billion¥0.01 billion

MS&AD snet incurred loss3

0.01%

2

MS&AD s share4¥9.4 billion

2.47%

1. The three most costly insurance market losses from natural catastrophes for the Americas, EMEA (Europe, Middle East and Africa) and APAC (Asia andOceania) during 2019 as listed in Aonʼs “Weather, Climate & Catastrophe Insight‑2019 Annual Report”
2. Insured loss: Estimated amount of insurance market loss covered by non-life insurance companies around the world (Source: Aonʼs “Weather, Climate &Catastrophe Insight‑2019 Annual Report”). Exchange rate: US$1 = ¥108.83 (used for internal purposes at the end of FY2019)
3. As of December 31, 2019. Total net incurred loss (claims paid + outstanding claims, reﬂects recoverable and anticipated recoverable amounts from outward
reinsurance contracts) by Mitsui Sumitomo Insurance and Aioi Nissay Dowa Insurance and their overseas subsidiaries. Excludes claims less than ¥50 million atentities outside the affected countries.
4. Ratio of total net incurred loss of Mitsui Sumitomo Insurance, Aioi Nissay Dowa Insurance and their overseas subsidiaries to the insured loss.
5. As of March 31, 2020. Total net incurred loss of Mitsui Sumitomo Insurance and Aioi Nissay Dowa Insurance.
6. As of March 31, 2020. Insurance claims paid in Japan (includes estimates) (Source: The General Insurance Association of Japan)
7. Ratio of total incurred losses by Mitsui Sumitomo Insurance and Aioi Nissay Dowa Insurance to Note 6 above.

INTEGRATED REPORT 2020

033

Our Way
MS&AD s Strategy

MS&ADʼs Path to Realizing Our Image of Society
The MS&AD Insurance Group is on the verge of creating the world-leading insurance and ﬁnancial services
group that we have pursued since our founding through the story of value creation with our customers,
shareholders and other stakeholders. As part of the medium-term management plan Vision 2021 launchedin ﬁscal 2018, the Group set forth a Resilient and Sustainable Society as the image of society we aim toachieve in 2030 and has charted sustained growth by managing the Group based on the creation of sharedvalue with society (CSV).

Next Challenge 2017
(FY2014‒FY2017)

New Frontier 2013

Development of the Storyof Value Creation(FY2010‒FY2013)

Founding of the Group

Advance Group integration based on the story of value
creation and realizing our mission

General Overview

Management
IssuesThe MS&AD Insurance Group was founded with themission of contributing to the development of a vibrantsociety and helping secure a sound future for the planet▶Improve proﬁtability in the domestic non-life
insurance business▶Enhance earning power in the domestic
non-life insurance business▶Ensure ﬁnancial soundness▶Improve capital eﬃciency[Achievements] We steadily undertook initiatives geared toward
returning the domestic non-life insurance business to
proﬁtability and moved forward in securing ﬁnancial soundness.
In addition, we made progress with Group business integration,
including the building of common platform systems for thedomestic non-life insurance business, and we clariﬁed the shapeof Group business integration as a result of reorganization byfunction in 2013.

[Achievements] We made progress in reorganization byfunction, while restoring proﬁtability in the domestic non-life
insurance business and putting in place a stable earnings
foundation. We also realized improved capital efﬁciency andbuilt a platform for growth by strengthening ERM andpromoting sales of strategic equity holdings and investments inoverseas businesses.
[Issues] Due to lower earnings in the international business andfailure to make progress in geographical diversiﬁcation of thebusiness portfolio from domestic to overseas, we did not achieve
the targeted international business proﬁt ratio of 50%.

[Issues] Buffeted by large-scale natural catastrophes, including
the Great East Japan Earthquake and ﬂoods in Thailand in 2011,
the Group Core Proﬁt target for the ﬁnal year was revised
downward. Furthermore, due to large-scale insurance payments
on account of record-breaking snowfall in the Kanto Koshinetsu
region in February 2014, the Company ended up missing its
targets for Group Core Proﬁt and Group ROE.

(¥ billion)
FY2013

FY2014
Results

Results

110.0

155.7

105.0

160.0

220.0

100.0

60.0

92.4

190.1

100.0

135.0

24.4

15.0

15.0

20.4

34.3

16.0

15.0

1.8

18.0

30.0

30.0

38.2

(125.0)

39.0

66.0

1.9

4.4

5.0

5.0

4.6

5.6

6.0

5.0

0.8%

4.5%

7.0%

7.0%

5.9%

3.7%

7.0%

7.5%

FY2010Results

Results

14.5

94.8

150.0

Domestic Non-Life Insurance Business

6.5

47.8

Domestic Life Insurance Business

4.1

International Business
Financial Services Business and Risk-Related Services BusinessNumerical Management Targets
Group Core Proﬁt1

Group ROE1

FY2017

Initial targets Revised targets

Initial targets Revised targets4

2,541.4

2,809.5

2,700.02,700.0

2,940.7

3,446.9

Combined Ratio (Domestic Non-Life Insurance)

­

­

­

­

96.0%

92.8%

Annualized Premiums of Policies in Force (life insurance)2

278.0

333.5

330.0

330.0

­

­

3,100.0
3,570.0
95% or less 93％ range
­
­

­

­

­

­

59.7

41.3

more than 45.0 more than 50.0

Consolidated Net Premiums Written

Increase in EV3 of MSI Aioi Life

1. The deﬁnitions for Adjusted Proﬁt and Adjusted ROE identiﬁed as numerical management targets have been revised under the new medium-term management
plan “Vision 2021.”
2. Figures for MSI Aioi Life (excluding group insurance). The ﬁgure for FY2010 is the total for MSI Kirameki Life and Aioi Life.
3. “EV” stands for embedded value. (See the “Glossary of Insurance Terminology” (P. 98) for details.)
4. FY2017 numerical management targets are revised higher from the initial FY2016 targets.

034

MS&AD INSURANCE GROUP HOLDINGSCEO Message

Who We Are

Special Report

Our Way

Special Feature

Appendix

Our Platform

Data Section

MS&AD s Strategy

Image of society in 2030
Resilient andsustainable society

Vision 2021
(FY2018‒FY2021)

Stage 2

Stage 1Develop management
based on CSV
Realize sustainable growth by creating shared value
through corporate activities▶Achieve medium-term aspirations▶Build resilient systems that can respond tochanges in the environment[Achievements] The domestic non-life insurance businessmaintained an industry-leading premium growth rate, while thedomestic life insurance business worked to maintain and expand
the stable earnings foundation by building a groundwork for proﬁts
in the future. Despite the impacts of natural disasters and
COVID-19, Group Adjusted ROE achieved a level that generally
approached the target.
[Issues] Although diversiﬁcation to the life insurance business has
progressed smoothly, the international business saw a delay in MS
Amlin's return to proﬁtability, thereby postponing achievement ofbusiness portfolio diversiﬁcation in some regions. As long associety continues to refrain from economic activity due to theimpact of COVID-19, we will prioritize expense reductions throughgreater productivity. After the situation returns to normal, we willcapture the changes in the operating environment as opportunities
and work to achieve a greater level of growth.

FY2019Progress Status

Medium-term aspirations(FY2021 targets)

Scale

５th
(FORTUNE GLOBAL
500 2019, P&C)

Within the top 10
non-life insurancegroups in the world

Capitaleﬃciency

8.0％Group Adjusted
ROE 10%Financialsoundness

186％(Reference: 204% at thetime of UFR application)

ESR 180%‒220%

Portfolio
diversity

46％

50% (proﬁt basis) inother than the domestic
non-life insurance
business

Strategic
equityholdings ratio

26.1% of integrated
risk amount
9.2% of consolidated
total assets

Strategic equity holdings
below 30% of theintegrated risk amountand below 10% ofconsolidated total assets

Proﬁtability

Excluding natural disasters
EI combined ratio of 91.4%

Combined ratio in thedomestic non-life
insurance businessstable at 95% or lessStage 1 Achievements and Issues
Achievements

Issues

Maintained and expanded a stable earnings foundation
Advanced growth and eﬃciency throughthe Group s comprehensive strengths

Reform the portfolio(business portfolio diversiﬁcation)

Achieved reduction targets for strategic equity holdings
Advanced sustainability initiatives

Capital eﬃciency

Improved the foundation for promoting digitalization

INTEGRATED REPORT 2020035

Toward Medium-Term Growth
Working toward the realization of a resilient and sustainable society, we will promote initiatives that lead to medium- andlong-term growth by accurately identifying the risks and opportunities that arise from the ever-changing business environment.

Recognition of theBusiness Environment

Risks and Opportunities by Social Issue

Society
Increase of intensity and frequency of natural disasters suchas wind and ﬂood damage and major earthquakes● Expansion of regional conﬂicts, expansion and consolidationof disparities such as that between poverty and wealth,increase of immigrants/refugees● Greater motivation for global-scale initiatives targeted atsolving social issues● Excellent performance of post-millennials● Major change in concept of values/lifestyle● Decrease in total population in Japan, advancement of regional
depopulation/promotion of regional construction● Further advancement of falling birthrates and aging populations
among developed countries● Effect and rebound associated with the Tokyo Olympics andParalympics● Penetration of “new lifestyles,” spread of a surveillance society andavoidance of high-density urban areas for the purpose of
COVID-19 countermeasures

Diversiﬁed/large-scale accidents and disasters

●

Risks
Changes in the nature of existing
businesses (e.g., conventional
automobile insurance)● Increase in insurance claims due
to frequent, large-scale natural
catastrophes● Emergence of new risks due to thegreater use of IoT and thepost-digital era● Growing asset management risks●

Politics
Dealing with climate change (the Paris Agreement), reinforcement ofregulations toward a carbon-free society● Strengthening capital regulations (Risk-based Global Insurance
Capital Standard (ICS))● Rise of protectionism and populism● Reinforcement of regulations such as legislation on human rights
protection and personal information protection regulations● Rising momentum for new international cooperation through
COVID-19 countermeasures● Review of self-sufﬁciency rate for food and healthcare (security)● Change in soft law (revision of Stewardship Code) and ongoing
demands to reduce strategic equity holdings

The global environment approaching its limit
Risks

●

Shifts in lifestyles and industrial
structures associated with thetransition to a carbon-freesociety● Erosion of the businessenvironment foundation due tothe depletion of natural capital●

Recovery from COVID-19 effects, extended economic recession,
global low interest rates● Review of trade friction and trade agreements● Expansion of ESG investment, rise in requests for disclosure
about climate change (TCFD)● Acceleration of social inﬂation (more sophisticatedcompensation)● Decrease in car sales, number of vehicles owned and housing
construction in Japan● Expansion of the sharing economy● Review of the supply chain (return to domestic production fromglobal division of labor)

Opportunities
Growing needs for evaluation and analysisof climate change and natural capital risk
● Flourishing growth in ESG investment andlending, such as Green Bonds● Needs for new insurance arising fromgrowth in new businesses related todecarbonization and resource efﬁciency● Mitigation of climate change risks becauseof the penetration of remote workstyles●

Mounting burden of nursing/medical careassociated with an aging population

Economy●Opportunities
Construction of new business models(e.g., telematics insurance, InsurTech)● Market developments along new sales
channels● Development of new insurance schemes tocover losses caused by large scale natural
disasters, etc., and growing need for theestablishment of BCPs
● Creation of new markets from theemergence of new risks (e.g., drones,
cyber, sharing)● Risk management and product development
stemming from the use of Big Data●

Risks
Slowing growth coinciding withthe maturation of domestic
insurance markets● Increase in automobile accidents
caused by elderly drivers● Reconsideration of solicitation
methods as policyholders age● Emergence of new risks
associated with advanced
medical care●

Opportunities
Increase in the need for asset-building andasset-inheritance devices for a super-aging
society● Expansion in the demand for services
related to nursing care and dementia● Greater awareness of health promotion
and disease prevention● Greater medical coverage due to changes
in the social security system and advancesin medical technology●

Decline in social vitality due to widening inequalities

Technology
Appearance of new business models via digital platformers
Penetration of 5th-generation mobile communication system(5G), post 5G● Development of new automobile technology (CASE, safety
support car, MaaS)● Boom of data-related business, threat of Big Data monopoly● Cashless payment, etc., further penetration of digitaltechnology into everyday life in Japan (realization ofSociety 5.0)
● Development of advanced digital technologies that support“new lifestyles” and expansion of the coinciding cyber risk
●
●

036

MS&AD INSURANCE GROUP HOLDINGS

Risks
Slowing growth and expanding
inequality in emerging markets
due to geopolitical risks● Contraction in rural markets due
to regional depopulation inJapan● Greater damage caused bynatural catastrophes and delayed
recovery efforts●

Opportunities
Stronger demand for insurance due to a
growing middle class under theassumption of robust development inemerging economies● Greater awareness among local
governments related to preventing andreducing disasters● Advancement in regional vitalization
because of the penetration of remote
workstyles, and growth in new insurance
needs coinciding with such
● Stronger needs for services that support
regional revitalization●

Solution-driving CSV Initiative Cases
Impact on Society

Economic Impact on the Company

Companies/organizations
protected against cyber risks

Policy growth rate

Products to address cyber risk

Deal withnew risks

Provide support for cybersecurity
countermeasures and compensation in
preparation for damages resulting fromthe unlikely event of a cyberattack

Approx. 12,300
Approx. 9,800

FY2018

Telematics-based safe driving
support services

Safermobility society

Resilientcommunity
development

Provide services that support safe driving
based on telematics technology forcorporate customers
1. Comparison of claims payments before
and after introduction of “Sasaeru NAVI”
2. Number of companies that haveintroduced “Smart Navi,” “F-Drive” and“Sasaeru NAVI (including Lite)”

Regional revitalization initiatives
in collaboration with local
governments
Provide products and services that solve
regional social issues in cooperation withlocal governments

FY2018

Climate change
mitigation andadaptation

Improve thesustainability ofnatural capital

The provision of combined insurance andderivative compensation products tomega-solar operators*Calculation based on national average
power generation results from NEDO
solar ﬁeld test and the default values ofemission factors by electric utility.

Simpliﬁed evaluations ofwater-related risks
Assess ﬂooding, drought and other water
resource risks at business locations, andsupport business from the perspective ofrisk management*Facilities with a water stress value (ratioof water intake accounted by annual
water supply volume) above 40%

Supportgood health andlongevity

Tontine annuities that support
future asset formation
A foreign-currency-denominatedindividual annuity insurance that meetsthe “usage” needs of customers who
receive a greater amount of annuity thelonger they live

283

Dementia Kobe Model
Accident relief program linked todementia regulations. Three-pronged
scheme consisting of insurance, early
screening and accident prevention
1. Total number of applicants from the start(January 28, 2019) of the program(preliminary results as of March 31, 2020)
2. Approximate cost (FY2019-FY2021) of
the “Kobe Model”

25.3％
FY2019374

FY2018FY2019No. of corporate customers2

Approx. 2,800
Approx. 1,400

FY2018FY2019Ripple effect on premiums income(FY2019)

9.5 billion

Approx. ¥FY2019Power generation volume under theComprehensive Coverage Plan for Mega-Solar
Power Generation and volume equivalent to
CO2 emitted* from thermal power
More than
3,000,000 tons
More than
1,700,000 tons

FY2018FY2019Ratio of facilities where water
shortage risks are high (total)*

No. of new policies

Approx. 7,100
Approx. 4,600

FY2018FY2019Total no. of evaluated facilities

42.0%

40.7%

224

244

FYE2018

FYE2019

FYE2018

FYE2019

Total amount paid
(average amount received)¥1.9 billion(¥640,000)

FY2018Work toward
the realization ofleaving no
one behind

FY2019Number of collaborations
with local governments

FY2018Comprehensive Coverage Planfor Mega-Solar Power Generation

10.1% YoY

Reduction rate of claims paid tosaid corporate customers1
36.5%

25.2% YoY

¥3.4 billion(¥600,000)

No. of policies

Approx. 27,000
Approx. 13,000

FY2019No. of Kobe residents who haveapplied for dementia screening1

21,4468,598

FY2018FY2019Premiums income
three-year total (estimate)2

390 million

Approx. ¥End of May 2019 End of March 2020037

Advancement of a digital society
The importance of cybersecurity has grown as the digitalsociety has evolved. Methods that defend against cyberrisks on multiple levels will unquestionably become
important in responding to increasingly sophisticated,complex cyberattacks. The Group deploys multifaceted
services in cooperation with outside partners.

Safe, next-generation mobility
It is assumed that the shift to autonomous driving,
electriﬁcation and other new initiatives will advance theuse of connectivity as a core technology. However,progress in vehicle connectivity and autonomous driving
technology are unquestionably two sides of the same
coin with the emergence of new risks. The Group
continues to propose forms of support that capture theneeds of the times.

Sustainable community development
Resilient community development requires the pursuitof safety and security, as well as the creation ofsustainable employment, based on disaster prevention
and mitigation initiatives. The Group provides various
forms of support for regional economic revitalizationthat leverage regional characteristics.

Realizing a decarbonized society
The Group supports the greater use of renewable energy
from the sidelines through appropriate preparations fordamage/loss caused by weather disasters as well as
innovations to bring about a decarbonized society byoffering insurance and consulting services.

Business management leveraging
natural capital
Corporate sustainability is linked to the sustainable useof natural capital that is leveraged to produce goods andservices, and is therefore now recognized as an ESG risk.
The Group has focused on building a sustainable
relationship between natural capital and businessactivities from early on and provides related risk
assessment services.

Preparing for the 100-Year Life society
The average life span in Japan has been increasing yearly.
Against a backdrop of intensifying demand for planned
asset building based on individual efforts in order to live
a more enriching life after retirement, the Group
provides products that support asset building for elderly
customers in heading toward a “100-year life” society.

Next-generation healthcare throughcollaboration with industry, government
and academia
Partnerships with various sectors are essential for seeking
out solutions to problems in an aging society and for
ensuring that no one is left behind. The Group aims torealize a society that is amicable for everyone by building
health platforms that suit regional characteristics incooperation with industry, government and academia.

Toward Further Growth

Japan s Cybersecurity
Service Market¥834 billion in 2019▼

¥999.4 billion in 2024
Source: IDC Japan Press Release“Domestic Information Security Market
Forecast Announcement for the Second
Half of 2019” (June 24, 2020)

New car sales for connectedvehicles (global)
31.2 million in 2019▼94.2 million in 2035
Source: Fuji Keizai “Future Outlook forConnected Car, V2X and Autonomous
Driving Related Markets 2020”

Future Imageof Society

Deal with new risks
・Multifaceted cybersecurity
・Insurance products and services that
address new viruses
・Coverage on sharing businesses
・Coverage for telework
・On-demand 1-day Leisure
Insurance

Safer mobility society
・Drive recorder type automobile insurance
・Telematics automobile insurance
・Safe driving support smartphone app
・Automobile insurance for truck convoys
operating with unmanned trailing vehicles
・Next-generation automobile insurance
research and development

Regional revitalization budget, etc.

Resilient community development¥1,856.8 billion in 2019▼

・SME business SDG support
・Proposals for disasterprevention/mitigation and BCP・Expertise regarding green
infrastructure
・Initiatives for realizing an inclusive
society¥2,508.9 billion in 2020
Source: Cabinet Secretariat, Cabinet
Ofﬁce Headquarters for Overcoming
Population Decline and Vitalizing Local
Economy in Japan “Regional
Revitalization Budget”

Electricity accounted for by
renewable energy in Japan
16% in 2017▼22%‒24% in 2030
Source: Agency for Natural Resources
and Energy, Ministry of Economy, Tradeand Industry “Japanʼs Energy in 2019”

Climate change mitigation andadaptation
・Climate change risk assessment
・Weather derivatives
・Support for renewable energy
businesses
・Paciﬁc Catastrophe Risk
Assessment and Financing Initiative

Improve the sustainability of natural capital

Global ESG investments$22,890 billion in 2016▼

$30,683 billion in 2018
Source: GSIA “2018 Global Sustainable
Investment Review”

Household consumption
expenditure estimate among
those older than 70 (annual)¥53,000 billion in 2014▼

¥62,000 billion in 2025
Source: YOMIKO, R&D Estimates

Japan s healthcare market
scale (estimate)¥25,000 billion in 2016▼

¥33,000 billion in 2025
Source: Ministry of Economy, Trade andIndustry, Next-Generation Healthcare
Industrial Council “Future Discussions of the
Next-Generation Healthcare Industrial Council”

・Natural capital risk assessment
・Simpliﬁed evaluations ofwater-related risks
・Environmental supply chain
consulting
・Biodiversity-conscious land-use
consulting

Resilient and sustainable society

Creation of Business Opportunities

Support good health and longevity
・Smartphone app for maintaining
physical and mental ﬁtness
・Health & productivity management
support products
・Products for welfare/nursing careproviders・Self-help-style asset building
・Coverage for nursing care and dementia

Work toward the realization ofleaving No one behind・Relief system for dementia accidents
・Support for raising public awarenessabout foster care systems
・Training for foreign residents inJapan・Microinsurance
・Agricultural insurance

INTEGRATED REPORT 2020038

CEO Message

Who We Are

Our Way

Special Report

Special Feature

Our Platform

Appendix

Data Section

MS&AD s Strategy

CSV Initiatives Promoted by MS&AD

Future image of society by 2030

Resilient and sustainable society
Resilient

Sustainable

The ability to minimize damage from unforeseen
circumstances, adapt to new environments andreturn to growth

The ability to maintain a balance among the
economy, environment and society, and toensure that the global environment andsocial systems will remain in placethroughout future generations.

Materiality Analysis
In light of social issues and the Groupʼs business, we analyzed items based on where we can make a signiﬁcant
contribution to social sustainability together with issues that have a major impact on the Groupʼs long-term growthin the areas of economy (E), society (S) and organizational governance (G). From this process, we extracted sevenpriority issues (materiality). These seven priority issues are recognized as our challenges for CSV (Creating Shared
Value) that create value for both society and the Group.

The level of contribution to society s sustainability

Contribute to climate change mitigation and adaptation
Work toward the realizationof “leaving no one behind”

Deal with new risks

Create a mobility society
without accidents
Strive for resilient
community
development

Strive to improve the sustainabilityof natural capital
Support “good health and longevity”

The level of impact on the long-term growth of the MS&AD Insurance Group

Social and Economic Impact of CSV Initiatives
For the purpose of promoting CSV initiatives and improving the quality of such initiatives, the Group estimates thevalue that these initiatives provide to society (social impact) and the economic value that they provide to the Group(economic impact). See “Solution-driving CSV Initiative Cases” on P. 37 for speciﬁc examples.

INTEGRATED REPORT 2020039

Progress of the Medium-Term Management Plan
Vision 2021 (FY2018‒FY2021)

Numerical Management Targets
In the medium-term management plan “Vision 2021”, theGroup is working toward the goals of becoming a“world-leading insurance and ﬁnancial services group,” which
has served as the “vision” for the MS&AD Insurance Groupsince our founding, and of “developing a resilient system”
that will realize sustainable growth. During Stage 1, whichlasted through ﬁscal 2019, of the indicators raised as our
medium-term aspirations, we achieved each of the targets forscale, ﬁnancial soundness, reductions in strategic equity
holdings and proﬁtability.
Meanwhile, considering the delay in recovery of proﬁts
in the international business and the impact on asset
management coinciding with changes in the economic

environment following the emergence of COVID-19, we
corrected the Group Adjusted Proﬁt target for the ﬁnal year of
Vision 2021 from ¥350 billion to ¥300 billion.
Against this backdrop, we will leave the Group Adjusted
ROE target value unchanged as we continue to advanceinitiatives to streamline the business. Despite the uncertain
outlook due to the impact of COVID-19, we will prioritize
expense reductions through productivity improvements,
capture the changes in the business environment asopportunities and strive to further enhance the earnings
strength of the Group as a whole in order to realize the ﬁnal
targets for ﬁscal 2021.
(¥ billion)

Financial Targets

FY2018Group Adjusted Proﬁt

FY2019FY2021
Targets

189.8

233.1

180.0

300.0

146.9
（65.1）

119.5（98.4）

130.0（117.0）177.0（150.0）

Domestic Life Insurance Business

31.6

29.7

25.0

41.0

International Business

5.4

49.4

20.0

75.0

Financial Services Business/
Risk-Related Services Business

5.8

4.8

5.0

7.0

6.1%

8.0%

6.1%

10.0%

Consolidated net premiums written

3,500.4

3,573.7

3,400.0

3,580.0

Life insurance premiums(Gross premiums)

1,599.9

1,393.4

1,004.0

1,000.0

EEV of MSI Aioi Life

819.4

890.2

912.0

962.0

ESR (Economic Solvency Ratio)

199%

186%

­

180%-220%

Domestic Non-Life Insurance Business(excluding gains/losses on sales ofstrategic equity holdings)

Group Adjusted ROE

Sales Target of Strategic Equity Holdings

040

FY2020
Forecast

FY2017FY2018FY2019Total

Total sales target (FY2017‒FY2021)¥500.0 billion¥151.3 billion¥136.7 billion¥111.8 billion¥399.9 billion

Risk weight to integrated risk amount(before the risk diversiﬁcation eﬀect)

Less than 30%

32.7%

28.8%

26.1%

−

Fair value weight in consolidated
total assets

Less than 10%

12.7%

10.9%

9.2%

−

MS&AD INSURANCE GROUP HOLDINGSCEO Message

Who We Are

Our Way

Special Report

Special Feature

Appendix

Our Platform

Data Section

MS&AD s Strategy

Vision 2021

In line with “Vision 2021,” the Group formulated and isundertaking the Medium-Term Sustainability Plan,* which iscomposed of the CSV initiatives(seven priority issues) andthe core initiatives (“Quality that earns the trust of society”
and “Management platforms that enable employees to play
active roles”) and deﬁned KPIs.
During Stage 1, particularly in light of changes in theoperating environment, such as increasing interest fromsociety and expanded ESG investments, we prioritized“Climate Change Mitigation and Adaptation,” “Improve
Sustainability of Natural Capital” and “Respect Human
Rights,” based on which we discussed the Groupʼs stance*
and advanced initiatives. Through the Sustainability Contest(P. 74), seminars, study groups and other activities regarding
the challenges for CSV, we deepened the understanding of

Non-Financial Indicators A checkmark

CSV and SDGs among employees and expanded practical
initiatives in the insurance business. One remaining issue,
however, is the limited number of initiatives that link thevarious stakeholders and connect to the medium- tolong-term development and growth of our business.
In Stage 2, we will contribute to the solutions for these
problems, including social issues that have arisen in an era ofliving with COVID-19, and we will further promote initiatives
that also connect to the growth of the Group.
Moreover, initiatives designed to reduce the burden on
the environment will strive to further reduce CO2 emissions,
total energy consumption and paper consumption.
*For details on sustainability initiatives, visit the ofﬁcial website.

indicates that FY2019 ﬁgures have been assured by KPMG AZSA Sustainability Co., Ltd.

Creating Shared Value with Society (CSV initiatives)
Indicator

Fiscal 2019 Achievements

Development andimprovement of
products for creating
shared value withsociety

Initiative Cases:
Special Feature(PP. 66‒75)● Social/Economic Impact:“Solution-driving CSV
Initiative Cases”(P. 37)● Sustainability Report●

Group Targets for Fiscal 2019 Onward
For the seven key issues (P. 13), decide on four methods ofapproach and periodically ascertain progress qualitatively.

Four methods of approach
Provision of products and services

Investments and ﬁnancing

Research and policy recommendations

Contributions to society

Key related SDGs

Management platforms
that enable employees to play active roles

Quality that earns the trust of society
Indicators(related pages)

Fiscal 2019
Achievements

Group Targets for
Fiscal 2019 Onward

Indicators(related pages)

Quality improvement
Customer satisfaction
survey about insurance
contract procedures
Customer satisfaction
survey about payment
of insurance claims

97.7%

The same level or higher
compared with theprevious ﬁscal year

96.6%*The same level or higher
compared with theprevious ﬁscal year

Reduction of the environmental burden (P. 51)
CO2 emission reduction rate

-20.7%

Total energy
consumption

943,090 GJ（-33.4%）

Reduce CO2 emissions
by 30% by 2020 and by
70% by 2050 versus thebase year (FY2009)

Paper consumption

11,080 t（＋5.1%）

Lower than theprevious ﬁscal year

Fiscal 2019
Achievements

Group Targets for
Fiscal 2019 Onward

Diversity & inclusion (P. 51, PP. 79‒82)
Ratio of female
managers (domestic)
Employee satisfaction(“working vigorously”)

14.8%
4.5 points

15% (FY2020)
The same level or higher comparedwith the previous ﬁscal year

Key monitoring indicators other than sustainability KPIs
Number and ratio of global employees (P. 51)
Ratio of employees with disabilities (P. 80)●●

Health management (P. 15, P. 82)
Employee satisfaction“Pride, job satisfaction”
Number ofannual paid holidays taken
Ratio of taking fully
paid paternity leave
Number of employees
participating in social
contribution activities

4.4 points
15.7 days
64.6％
27,673 people

The same level or higher comparedwith the previous ﬁscal year
The same level or higher comparedwith the previous ﬁscal year
The same level or higher comparedwith the previous ﬁscal year
The same level or higher comparedwith the previous ﬁscal year

*Taget: Mitsui Sumitomo Insurance/Aioi Nissey Dowa Insurance/Mitsui Direct General/Mitsui Sumitomo Aioi Life Insurance

Sustainability https://www.ms-ad-hd.com/ja/csr.html
MS&AD Insurance Group and Sustainability ●Our Sustainability Priorities●Our Value Creation Approach●Products and services that contribute to achieving the Sustainable Development Goals (SDGs)●ESG Data/Reference Material●

Websitecontent●

INTEGRATED REPORT 2020041

BasicStrategies

By employing the Group s resources to the maximum, we will realize sustainable growth andenhance corporate value.
We will pursue the Group s comprehensive strengths, one of which is diversity, and meet the
expectations of customers and other stakeholders.
We will respond ﬂexibly to changes in the environment and further improve quality and productivity.

Vision 2021 Stage 1 General Overview
1

Key Strategy

Pursuing the Group s Comprehensive Strengths

Realize improvements in growth and productivity by enhancing our presence in the market through joint initiatives between Group companies

Joint Initiative for Two Domestic Non-Life Insurance Companies●

Each and every measure toward productivity
improvement/quality improvement, such as joint developmentof products, and joint efforts at the sales department/the claims
services department made progress.

Communication Meeting (Okinawa Branch)・Dashcam-based automobile insurance (Mimamoru)
・Cyber risk and cybersecurity platform・Joint efforts at branch ofﬁces countrywide
・Setting up of joint bases at the occurrence of natural disasters, etc.

●

Established Group-wide working groups for each issue andpromoted the review of operations.

・Projects to “utilize/extend/increase” founded on a core of humanasset exchanges and joint initiatives at the front line
・Projects to “stop/eliminate/reduce” founded on a core of reduced
work volume as well as of standardized logistics for printing and headofﬁce functions

2

Key Strategy

Promote Digitalization“Proposals for Preparedness against Flood and Earthquakes” jointly
developed with agents of both companies● Leveraging the strengths of both companies to develop new
businesses● Increase operational efﬁciency by sharing and eliminating
overlapping administrative operations and sharing administrativeknow-how● Joint human assets development training● Group presence-up through regional revitalization initiatives suchas activities to eradicate drunk driving●

Built a global platform as the foundation for promoting digitalization.

Establishment of CVC and investment in start-ups

Developing digitally minded human assets

In October 2018, we established a corporate venture capital(CVC) in Silicon Valley● Aiming to acquire technologies with a medium-term
perspective, venture investments (in 33 companies as of end
March 2020) were made and business tie-ups with Group
companies have seen progress●

Running various promotional measures

Global Platform

Digital tools such as chatbots and RPA are utilized to reformbusiness processes● Introduction of agent sales support systems equipped with AI(February 2020)● Launch of telematics and dashcam-based automobile insurance(Mimamoru・Tsunagaru) and claims service●

Key Strategy

3

Developed a program (MS&AD Garage) in Silicon Valley toallow practitioners in Japan and overseas to uncover advanced
technologies that help resolve issues● Digitally minded human resources are being developed incollaboration with Toyo University (INIAD), Shiga University,
Kyoto University of Advanced Science and other institutions● Idea contests such as the Challenge Program have been organized●

Global digital hubs (GDHs) were established in Singapore andTokyo as places to consider organic business coordination at the
global level● Partnerships were formed with an Israel-based ﬁrm promoting
innovation (FinTLV, SOSA)● Rolling out expertise and technologies of start-up companies tooverseas entities and launched collaborative efforts●

Reform Our Portfolio Reformed the Group s business portfolio and risk portfolio to create a stable earnings base.

Initiatives for Expanding International BusinessOverallBusiness

MS Amlin

Asia
Telematics
and Mobility
Head Oﬃce
Reinsurance
InternationalLife Insurance
042

Global coordination of expertise● Built a platform for a world-leading insurance and ﬁnancial services group＜Issues＞①Leveraging the strengths (e.g., skills, networks) of each Group
company across regions②Speedier decision-making that can respond to rapid changes in theenvironment

Improved the loss ratio on non-cat lines by improving underwriting
terms and conditions＜Issues＞ The recovery in proﬁtability has been behind plan●

Achieved the No. 1 position in the ASEAN region with MS First
Capital joining the group● New investment in Myanmar and additional investment in Sri Lanka

Diversiﬁcation of Risk Portfolio(Reduction of strategic equity holdings)
Risk weight of strategic equity holdings
in integrated risk amount

Target
below
30%

●

Promoted across a ﬁve-region structure of Europe, Americas, Asia,
China and Japan● Advancement of the CASE/MaaS ﬁelds
●

●

●
●
●

Improved proﬁtability and reduced risk from wind and ﬂooding
damage in the United States
Equity-method afﬁliation for Challenger
Integration of ReAssure with Phoenix
Agreement to invest in BoCommLife Insurance in China

MS&AD INSURANCE GROUP HOLDINGS

32.7％

2017

28.8％

26.1％

2018

2019 （FYE）

Fair value weight of strategic equity
holdings in consolidated total assets
12.7％
10.9％
9.2％

Target
below
10%

2017

2018

2019 （FYE）

CEO Message

Who We Are

Our Way

Special Report

Special Feature

Appendix

Our Platform

Data Section

MS&AD s Strategy

Vision 2021 Stage 2 Overview
Key Strategy●●

Pursuing the Group s Comprehensive Strengths

We will further promote initiatives aimed at improving Group quality and productivity to strengthen our competitiveness.
In Stage 2, the effect of business rationalization (total for Japan and overseas) is targeted at ¥30 billion.

Fully utilizing the Group s strengths

Strengthening Group coordination

Diversity

Domestic non-life
insurance business

CapitalDomestic life
insurance business

International
business

Human assets

Financial services
business

Risk-related services
business

MS&AD Group companies that
support the ﬁve business domains

Growth (expanded top line)

Strengthen proﬁtability

2

Promoting standardization and joint initiatives
Standardization of products
and administrative tasks

Customer base

Key Strategy●

1

Joint claim service system

Health and medical-oriented
products and services

Business streamlining

Promote Digitalization

We will promote three major initiatives that help improve the value of customer experiences and boost business productivity(DX, DI and DG), and promote sustained growth across the Group.

DX

DigitalTransformation

ReformTransform existing businesses andenhance competitiveness while
streamlining and optimizing business
Promotion of streamlining by the digitalstrategy departments of the two domestic
non-life insurance companies● Improving agent competitivenessthrough AI utilization(e.g., MS1 Brain)● Improving efﬁciency and increasing
sophistication in claims services utilizing
telematics technologies (e.g., telematics
claims service system)

3

DG

Creation

DigitalGlobalization

Expansion

Spread expertise on a reciprocal basis
in Japan and overseas to promote DX
and DI on a global scale

Create new business models by utilizing
data and digital technologies●

Key Strategy

DigitalInnovation

DI

Solving the risks and issues faced bysociety and companies through advanced
data analysis (RisTech)● Creating new markets throughcollaboration with digital platformers(e.g., Finatext)● Offering products and services that meetcustomer needs by utilizing small andshort-term insurance

Utilize cutting-edge start-up companies
globally● Accelerate CASE and Maas initiatives
globally● Expand use of internal and external
solution know-how●●

Reform Our Portfolio

While goal attainment regarding diversiﬁcation of the business portfolio will be pushed back as we seek to minimize theexpansion of new business risks in part due to COVID-19, we will steadily continue with initiatives based on a starting point oforganic growth as we strive to realize our future vision.
● We mostly attained target levels in the reduction of risks from strategic equity holdings, but given heightened market
volatility, we will continue with efforts to reduce peak risks.
●Group Adjusted Proﬁt by Business Portfolio
End of ﬁscal 2015*

End of ﬁscal 2019¥4.8 billion
27% 3%¥49.4 billion

End of ﬁscal 2021 (forecast)27%

3% ¥7.0 billion¥75.0 billion

54%
16%

¥29.7 billion

Future Aspirations (image)

55%

50%

15%

¥98.4 billion(excluding ¥21.1 billion in gains/losses on sales of strategic equity holdings)¥41.0 billion¥150.0 billion(excluding ¥27.0 billion in gains/losses on sales of strategic equity holdings)■Domestic Non-Life Insurance Business (excluding gains/losses on sales of strategic equity holdings)■Domestic Life Insurance Business ■International Business ■Financial Services Business/Risk-Related Services Business*At the starting point of the portfolio reform

INTEGRATED REPORT 2020043

Financial and Capital Strategies
CFO Message

Director, Senior Executive Oﬃcer, CFO

Masahiro Higuchi

Sustainable Proﬁt Growth
Enhance the Competitiveness of Existing Businesses●Invest in systems and promote digitalization (DX: digitaltransformation), etc.

●Implement ROI-based investment

Speciﬁc Initiatives
Upgrade business processes using digital tools (chatbots, RPA)
Enhance claims service efﬁciency using telematics technology● Enhance the competitiveness of agencies (MS1 Brain)●●

AI support for agents"MS1 Brain"

Business Portfolio Diversiﬁcation and Expansion●Invest in new businesses to diversify our geographic andbusiness portfolios, etc.

<Points of Consideration for Investment>
Shared values
Sustainable growth model

Risk dispersion (geographic, line of business)
ROI target: level above the cost of capital (7%)

●

●

●

●

Speciﬁc Initiatives
Raise our stake in PT. Asuransi Jiwa Sinarmas MSIG Tbk (Indonesia)
Finance Myanmar private-sector non-life major IKBZ InsuranceGroup Adjusted Proﬁt●

044

MS&AD INSURANCE GROUP HOLDINGSLife Insurance
Business

International
Business

M&A

Future Growth Pillars

Expand Casualty Insurance
Domestic Non-Life
Insurance Business

Maintain Stability and Strengthen

Maintain Automobile Insurance Earnings
Improve Proﬁtability of Fire Insurance

Pursue CSV Initiatives●

CEO Message

Who We Are

Special Report

Our Way

Special Feature

Appendix

Our Platform

Data Section

MS&AD s Strategy

Fiscal 2019 Achievements

MS&AD Growth Model

Fiscal 2019 was the ﬁnal year of Stage 1 of the medium-term
management plan "Vision 2021". However, Group Adjusted
Proﬁt fell below the planʼs target by ¥39.9 billion to ¥233.1
billion, as did Group Adjusted ROE by 0.3 percentage point
to 8.0%. This reﬂects expected insurance payments of ¥502
billion on a direct underwriting basis following large-scale
natural disasters, just like in ﬁscal 2018, such as Typhoons 15(Faxai) and 19 (Hagibis), as well as booking an impairment
loss of ¥85.3 billion as the COVID-19 outbreak triggered
stock market drops in Japan and abroad through to the endof the ﬁscal year.

The Groupʼs capital policy is rooted in increasing shareholder
value by pursuing investment to realize sustainable growthand maintaining stable shareholder returns, while ensuring
ﬁnancial soundness.The Groupʼs greatest strength is its
highly competitive and stable Domestic Non-Life Insurance
Business, and during Stage 1 of Vision 2021 we managed tofurther enhance this strength. Based on this solid earnings
foundation, the Groupʼs core growth strategy is to diversify
its portfolio via expansion in the Life Insurance andInternational businesses.
In addition, our capital strategy involves allocatingaround half of annual proﬁts for investments that aim to
improve the competitiveness of existing businesses, forinvestments to diversify and expand the business portfolio,
and for investments to create new business territories, all ofwhich should enable us to accelerate proﬁt growth.
Furthermore, we spread CSV initiatives Group-wide to realize
sustainable growth underpinned by the development ofsociety, which is undergoing various changes.

Fiscal 2020 Achievements
and Fiscal 2021 Targets
It is unclear how far the impact of COVID-19 will extend.
Nevertheless, we see a need to present ﬁscal 2020 earnings
forecasts in some form and assume economic contraction
throughout the year based on market conditions as ofMarch-end 2020. Accordingly, we forecast ﬁscal 2020 Group
Adjusted Proﬁt of ¥180 billion due to an expected decline ininvestment gains of around ¥60 billion in Japan and abroad,and a rise in net incurred losses mainly for overseas
insurance subsidiaries of around ¥20 billion. In ﬁscal 2021,
the ﬁnal year of Vision 2021, we aim to reach Group Adjusted
Proﬁt of ¥300 billion and Group Adjusted ROE of 10% mainly
based on a recovery from COVID-19 negatives and a reboundin International Business earnings.

See the “Glossary of Insurance Terminology” (P. 99)
for deﬁnitions of Group Adjusted Proﬁt and Group
Adjusted ROE.

Create New Business●Implement investment via CVC to seek out game-changing technologies and business models over the next 3‒5 years●Implement initial investment premised on cash ﬂow equilibrium●Undertake ROI-based investment in the same manner as enhancement-oriented spending during the actual technology mounting phase

Speciﬁc Initiatives
Venture investment based on Silicon Valley CVC (33 companies as of March 31, 2020)
Collaboration with companies pursuing innovation in Israel● Alliances with digital platformers (Finatext)
●
●

CVC

Investment in creation

Shareholder
Returns

Group Adjusted ROE

Investment in growthGroup Adjusted Proﬁt

Investment in enhancement

Target 40%‒60%of Group
Adjusted Proﬁt

FY2021 target 10%
INTEGRATED REPORT 2020045

Capital Eﬃciency

Target ROE of 10% as a world-leading insurance and ﬁnancial services group
Of the ﬁscal 2021 numerical management targets for
Vision 2021 (Stage 2), we lowered initial Group Adjusted
Proﬁt by ¥50 billion to ¥300 billion but maintainedGroup Adjusted ROE at 10%. Taking capital costs into
account, we will pursue growth, portfolio diversiﬁcationand optimal resource allocation aimed at an ROE level on
par with major European and U.S. insurers. We will work
to lower peak risks by selling strategic equity holdings
and diversify risks by implementing growth investment
strategies and taking insurance risks and asset

management risks not related to strategic equity
holdings. In addition, we will take catastrophe risksGroup-wide on a reduced basis while enhancing risk
return management based on the characteristics of eachproduct type. We estimate 7% for the cost of capital basedon the capital asset pricing model (CAPM).**See the “Glossary of Insurance Terminology” (P. 98) for details.

Group Adjusted Proﬁt and Group Adjusted ROE
Next Challenge 2017

New Frontier 2013

Vision 2021

Domestic Non-Life Insurance Business(¥billion)

Domestic Life Insurance Business

Financial Services/Risk-Related Services businesses

500

Group ROE

10.0

International BusinessGroup Adjusted ROE

Others*

10.0

8.0

7.9

400
300

5.0

5.9
4.5

200
100

0.8

0

87.4

6.1
5.2
147.5

6.1

6.0

189.8

180.0

105.1

94.8

8.0

300.0

233.1

3.7

213.7
155.7

（％）

4.0
2.0

△5.6

0.0

14.5

-125.0

-87.5

-100
2010

2011

2012

2013

2014

2015

△6.0

2016

2018

2017

2019
2020
2021 (FY)(Results) (Forecast) (Targets)*Including the decrease in income taxes paid in FY2019 among the effects of reorganization of MSI's international business

Risk-Taking Trends
Business domains

Risk weight

Sub-domains
Underwriting
Domestic
non-life
insurancebusiness

Domestic
life insurance
businessAssetmanagement

Risk Portfolio Status(March-end 2020)

11%

Strategic
equityholdings

26.1%

Non-strategic
equity15%

Underwriting

Asset management

9%21%

Risk-taking
trends■International Business■Domestic Life Insurance Business (asset management)■Domestic Life Insurance Business (underwriting)■Domestic Non-Life Insurance Business(asset management: non-strategic equity)■Domestic Non-Life Insurance Business(asset management: strategic equity)■Domestic Non-Life Insurance Business (underwriting)
（%）
100
80
60

046

MS&AD INSURANCE GROUP HOLDINGS

18%

40.5

12

10

11

32.7

28.8

26.1

13

15

8

9

13
40
20

International Business

17

14

7

10
8
11

16

20

21

19

19

18

2013

2017

2018

Integrated
risk amount
68%

¥2.4
trillion
2019

(FY)

CEO Message

Who We Are

Special Report

Our Way

Special Feature

Our Platform

Appendix

Data Section

MS&AD s Strategy

Financial Soundness

Ensure ﬁnancial soundness equivalent
to an AA rating by enhancing capital and controlling risk.
Targeting ﬁnancial soundness equivalent to an AA rating,
we have set an ESR of 180%‒220% as an appropriate levelto secure. ESR1 as of March 31, 2020, was 186%, and thisis being maintained as an appropriate level under thecurrent capital policy.
A majority of the Groupʼs liabilities are policy
liabilities. In principle, the policy is to hold corresponding
assets that match the characteristics (e.g., currency,
duration) of the liabilities. In addition, the Group works
to improve earnings stability and ﬁnancial soundness bydetermining investments and ﬁnancing methods basedon ROR2 and VA.3

1. ESR: Economic Solvency Ratio
2. ROR: Return on Risk
3. VA: Value Added(See the “Group Management Based on ERM” section (P. 76) for details.)

Domestic Non-Life Insurance Company Ratings(Mitsui Sumitomo Insurance and Aioi Nissay Dowa Insurance)
S&P

Moody sA.M. Best

R&I

JCR

A+
（Stable）

A1（Stable）

A+（Stable）

AA（Stable）

AA+（Stable）(See the “Credit Ratings” section (P. 118) for details.)

ESR* (credit level 99.5%)（％）
250

Appropriate ESR Level

Vision 2021 target level: 180%‒220%

200

183

220%

211※

201

195
181

Appropriate Level

199
196

Consider business investment,
additional risk-taking, shareholder
return enhancements(= level for ﬁnancial
soundness equivalent
to an AA rating)186

Work to improve capital eﬃciency while
maintaining the current capital policy

186%

180%

(March 31, 2020)

157
150

100

144 140

Identify the way back to an
appropriate level and investigate
measures to restore capital levels or
reduce the risk amount as needed
100%

Work to quickly return to an
appropriate level2010 2011 2012 2013 2014 2015 2016 2017 2018 2019（FYE）*We achieved a more sophisticated method for calculating ESR from ﬁscal 2018.

Shareholder Return Policy

Return 40%‒60% of Group
Adjusted Proﬁt to shareholders through dividends and share buybacks.
As for shareholder returns in ﬁscal 2019, we raised
dividends by ¥10 from the previous year to ¥150 and
implemented share buybacks totaling ¥35 billion. For
ﬁscal 2020, we are keeping our annual dividend
estimate unchanged from last year at ¥150 based on
current uncertain conditions and out of considerationfor our various stakeholders. Under Vision 2021
Stage 2, we still plan to provide shareholder returns
targeting Group Adjusted Proﬁt of 40%‒60%, while
intending to raise shareholder value over the
medium to long term by appropriately distributing
proﬁt to shareholders and internal reserves,
aggressively returning proﬁts to shareholders andaccumulating internal reserves for investments infuture growth. We will continue aiming to increase
corporate value through sustainable growth as well
as stable shareholder returns.

Total Return per Share
DPS

Return per share via share buybacks
169.1
113.5

69.8
54

54.0
54

62.0
54

180.6

65

207.8

122.5

72.0
56

193.3

90

120

130

140

150

150

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020（FY）
Forecast

INTEGRATED REPORT 2020047

Toward Sustainable Growth and Achieving Targets
for Group Adjusted ROE and Group Adjusted Proﬁt
Components of Group Adjusted ROE

Breakdown of Group Adjusted ROE

Ensuring Balance by ERM Management

Group Adjusted ROE, one of the numerical managementtargets in “Vision 2021,” can be explained in terms of thetwo indicators shown in the chart below, namely ESR,
which represents ﬁnancial soundness, and ROR (Returnon Risk), which expresses the balance between the
returns and risks that the MS&AD Insurance Groupassumes. These indicators can be further broken down
into three elements comprising Group Adjusted Proﬁt,
Integrated Risk Amount and Net Asset Value (capital).

While striving to increase Group Adjusted Proﬁt throughactivities in each of the Groupʼs business domains, weemploy ERM to manage the Group in a way thatbalances Group Adjusted Proﬁt, Integrated Risk Amountand Net Asset Value (capital). (See the “GroupManagement Based on ERM” section (P. 76) for details.)

Adjusted Net Assets andNet Asset Value (Capital)

Group Adjusted ROE

RORGroup Adjusted Proﬁt ※1

Group Adjusted Proﬁt

Integrated
Risk AmountIntegrated
Risk Amount3

Adjusted Net Assets

Group Adjusted
Proﬁt

Integrated Risk
Amount1

Integrated Risk
AmountNet Asset Value(Capital)

ESR

Adjusted Net Assets※2Group Adjusted
ROE
An indicator of
capital eﬃciency[FY2021 target]

10 %In ERM, to thoroughly manage thenet asset value, which serves as amanagement buﬀer, Adjusted Net
Assets are transformed into the Net
Asset Value through the following
calculations.

ROR

ESR

（Return on Risk）（Economic Solvency Ratio）= Net Asset Value (capital)
÷ Integrated Risk AmountAn indicator of thebalance between
the risks theGroup is assuming
and the associatedreturns.

An indicator of the balance
between the risks the Groupis assuming and the Group s
net assets, in other words, anindicator of ﬁnancial soundness.

Regular monitoring of ESR［Appropriate level］

ESR 180 %-220 %Note: Figures within parentheses are forthe ﬁscal year ended March 31, 2020.
Net asset value = Adjusted net assets(¥2.8 trillion) + Unrealized insurance
liabilities (¥0.4 trillion) + Other equity
liabilities, etc. (¥1.2 trillion) = ¥4.4 trillion

Net Asset Value(Capital)
Integrated
Risk AmountGroup Adjusted
Proﬁt

Initiatives toachieve Group
Adjusted
Proﬁt target ineach businessdomain.

ERM balancesthese threeelements.

Monitoring ROR for
the Group overall
Each businessdomainEach businesscompany

1. Group Adjusted Proﬁt = Consolidated net income + Provision for catastrophe loss reserve and others ‒ Other incidental factors (amortization of goodwill andother intangible ﬁxed assets and others) + Equity in earnings of non-consolidated Group companies
2. Adjusted net assets = Consolidated net assets + Catastrophe loss reserves and others ‒ Goodwill and other intangible ﬁxed assets
3. The integrated risk amount represents insurance underwriting risk, asset management risk, operational risk, etc., quantiﬁed by means of stochastic methods.
4. The Family Registration Service is a service that allows pre-registered family members, in addition to the policyholder, to receive information about theinsurance policy just like the actual policyholder.
5. Number of days to provide assurance is an indicator of how long it takes for the company to complete administrative tasks for customers, such as applications
for new insurance contracts, applications to cancel policies, claims for insurance payments and claims for other beneﬁts. It is broken down into (1) the average
number of days to conclude a new policy, (2) the average number of days required to pay an insurance claim and (3) the average number of days required to
pay a cancellation refund.
6. Mortality margin, administrative expense margin and investment yield margin are indicators for core proﬁt, which represents the fundamental proﬁtability oflife insurance companies. Together, these terms are referred to as the “three surplus factors.” Mortality margin is the proﬁt or loss on the difference between
projected insurance beneﬁts payments, based on assumed mortality rates, and actual insurance beneﬁts payments. Administrative expense margin is the gain orloss on the difference between projected business expenditures, based on assumed expense ratios, and actual business expenditures. Investment yield margin is
the gain or loss on the difference between projected investment income, based on assumed interest rates, and actual investment income.

048

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MS&AD s Strategy

KPI and Speciﬁc Initiatives to Achieve the Group Adjusted Proﬁt Target and Sustainable Growth
KPI

Examples of Speciﬁc Initiatives
Providing products and services that rapidly and ﬂexibly address theincreasingly diverse needs of customers
Enhancing the ability to serve customers during all points of contact● Practicing claims handling that closely reﬂects customers expectations● Improving quality as an insurance company●●

Main Reference Indices

Customer satisfaction

The Group

Non-life insuranceLife insurance

Customer satisfaction
Ratio of female managers● Ratio of global employees● Satisfaction toward
response and service ofagents●Claims handlingsatisfaction● Agents recommendationrate● Number of improvements
based on customer
comments●●●

GrowthNumber of registrations for
the Family Registration
Service4● Number of days to provide
assurance5● Number of Perfect LifestyleSupport Center6 users

For other indices and results, see “Customer-First Business Operations”
on each companyʼs ofﬁcial website.

The
Group

●
●
●

Premium growth rate

Activities for maintenance of renewal contracts and acquisition of new contracts
New product development based on an understanding of changing customer needs
Maintain and expand a robust sales platforms create and diversify sales
channels

Main Reference Indices
The Group
Non-life insuranceLife insurance●●

Sales budget achievementrate● Contract continuation rate
● Ratio of global employees*Growth rate of premiums written
or annualized premiums

Number of new agents(sales networks)● Growth rate of thenumber of automobile
insurance contracts● Earnings andexpenditures balance● stepping-stone to the
future●Policies in force
Number of policies
Annualized premiums ofpolicies in force● Ratio of non-life insurance
agents that also sell life
insurance●●

Appropriate product design
Elimination of fraud claims/Appropriate and prompt payment of claims
Provide advice designed to prevent accidents and reduce damage● Usage of sustainable resources (use recycled parts)●

Group Adjusted
Proﬁt

●

Loss
ratio

●

Main Reference Indices
Number of risk surveys carried out
Number of risk management seminars and training sessions carried out●●

Combined ratio●●

Expenseratio

Non-life
insurance●

Reduction of business expenses by improving operating eﬃciency
Reform of operating processes and employee roles
Reduction of environmental burden through business activities

Main Reference Indices
Ratio of personnel expenses to sales ● Selection rate of web policy clauses
Paper usage ● CO2 emissions ● Total energy consumption, etc.

●●

Integrated asset/liability management based on consideration of
the characteristics of insurance liabilities
Improving Return on Risk
● Appropriate risk control●●

Investment
income/loss

Main Reference Indices
Investment yield ● Diversifying effect among assets
Reduction in strategic equity holdings, etc.

●●

Proﬁtability●●

Mortality margin6

Life
insurance

Product design that balances customer beneﬁts and business soundness
Reform the product portfolio

Main Reference Indices

Administrative expense margin

6●

Annualized premiums of policies in force●

Reduce administrative expenses through more eﬃcient management

Main Reference Indices●

Paper usage●

CO2 emissions●

Total energy consumption, etc.

Set reasonable assumed interest rates to ensure proﬁts
Sophisticated ALM operations and risk management based on thecharacteristics of liabilities● Improve returns and diversify risks by diversifying investment methods●●

Investment yield margin6

Main Reference Indices●Financial Highlights on P. 50.

Investment yield●

Rating distribution for invested bonds, etc.

Non-Financial Highlights on P. 51.
INTEGRATED REPORT 2020049

Financial and Non-Financial Highlights
Financial Highlights
Group Core Proﬁt/Group Adjusted Proﬁt1(¥ billion)

250

Group Core Proﬁt

213.7

200

8.0

201.0 189.8

2.02010 2011 2012 2013 2014 2015 2016

3,406.9

3,400

2017

2019 (FY)2018

3,446.9

2,639.4 6.4
2,541.4 2,558.8
0.9

0.7

4.7

4.7

3.1

1.2

1.6

2010 2011 2012 2013 2014 2015 2016 2017 2018

Net interest anddividends income

178.1

200
150
100

Capital proﬁt/loss(valuation gain/loss)

209.8

Capital proﬁt/loss(sales proﬁt/loss)

115

10

110

8

105

6

100

4

95

2

90

0

0

2.1

2019 (FY)228.9

187.7 171.6 180.5

135.3

116.4

105.1
102.9

98.2

99.4
96.0

95.8

91.6 92.6 92.8

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (FY)The combined ratio is a key indicator of proﬁtability for underwritingin the non-life insurance business. Proﬁtability is negative when thisindicator exceeds 100% and positive when this indicator falls below
100%.

Policies in force4(domestic life insurance business)
Net investment
income/loss

149.2(¥ trillion)

30
25
20

102.2
56.9

19.5

21.1

23.7

25.1

26.3

27.4

28.8 29.8

31.2 30.9

15

50

10

0

5

-50
-100

-5.6
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (FY)

（%）

12

Net investment income3(domestic non-life insurance business)
250

3.7

0.8

Combined ratio3(domestic non-life insurance business)

120

Consolidated net premiums written is one of the numericalmanagement targets in the medium-term management plan. The
premium growth rate indicates growth potential in premium income
for the domestic non-life insurance business and international
non-life insurance business.

(¥ billion)

-6.0

14

3,078.9 10.7
2,809.5 2,940.7

3,000

2,400

5.2

This is one of the numerical management targets in themedium-term management plan and indicates the ratio of Group
Core Proﬁt/Group Adjusted Proﬁt, as shown to the left, in respect toconsolidated net assets/adjusted net assets.

（%）

3,200

2,600

6.1

-4.0

-87.5

Consolidated net premiums written (left axis)
3,573.7
Premium growth rate (right axis)
3,500.4

2,800

5.9
4.5

8.0
6.4

-2.0

Consolidated net premiums written2 andpremium growth rate (non-life insurance business)

3,600

7.9

0

This is the proﬁt that serves as a resource for shareholder returns and isthus included as one of the numerical management targets in themedium-term management plan. In anticipation of transitioning toInternational Financial Reporting Standards from FY2022, the deﬁnition
was revised to “Group Adjusted Proﬁt” in “Vision 2021” (starting in
FY2018).

(¥ billion)

5.0

4.0

14.5

-50

Group ROE
Group Adjusted ROE

6.0

105.1

87.4 94.8

100

-100

（%）

233.1

155.7147.5

150

50

Group Adjusted Proﬁt

Group ROE/Group Adjusted ROE1

2010 2011 2012 2013 2014 2015 2016 2017 20182019 (FY)Net investment income is a major source of earnings, next tounderwriting proﬁt, for non-life insurance companies, consisting ofsuch components as interest and dividend income and gains/losseson the sale of securities.

02010 2011 2012 2013 2014 2015 2016 2017 20182019 (FY)This is one of the basic performance indicators for life insurancecompanies. This indicator expresses the total amount guaranteed topolicyholders of valid insurance policies at the end of the ﬁscal year.
(See the “Glossary of Insurance Terminology” (P. 101) for details.)

1. This calculation method was revised in FY2018. (See the “Glossary of Insurance Terminology” (P. 99) for details.)
2. Excludes the Good Results Return premiums of “ModoRich” voluntary auto insurance products
3. Simple sum of non-consolidated ﬁgures for MSI and ADI. (FY2010 is the simple sum of non-consolidated ﬁgures for MSI, Aioi Insurance Co., Ltd. and Nissay
Dowa General Insurance Co., Ltd.)
4. Total amount of policies in force for individual insurance and individual annuity insurance at MSI Aioi Life and MSI Primary Life. MSI Aioi Life was formed
from the merger of MSI Kirameki Life and Aioi Life on October 1, 2011, so FY2010 and FY2011 show a simple sum for the two companies.

050

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Non-Financial Highlights
A checkmark () indicates that FY2019 ﬁgures have been assured by KPMG AZSA Sustainability Co., Ltd.

Outside Director ratio and the Board of
Directors attendance rate

Customer satisfaction5
Customer satisfaction(accident response of automobile insurance)

（％）

100

95.5

95.6

96.0

Outside Director ratio (left axis)

（％）

96.6

50

96.5

96.7

95
89.4

89.3

90

89.3

2012

2013

2014

2015

2016

2017

2018

2019

(FY)

Our growth potential depends on improving customer satisfaction.
Along with these indicators, customer opinions are helpful inimproving quality.

0

Amount of paper usage

60,00040,00016,036 13,283 13,940 13,005 11,085 10,545 11,080

2013

2014

2015

2016

2017

2018

2019

(FY)

1,400,000

1,000,014
1,142,6471,126,555
1,070,8861,098,008
1,017,853

111,818 123,567 119,953 120,930 104,669 98,110

9

91,200,000

943,090

1,000,000
800,000
600,000

89,055

2015

2016

2017

2017

15.7
12.7

41.7

41.7

2018

2019

80

(FY)

0

2018

2019

0

(FY)

Reducing CO2 emissions helps mitigate climate change, a risk for the
non-life insurance business. It also reduces energy-related business
expenses.

Group
consolidated

20.0

（％）

18.1
Domestic

14.8

12.4

3.0

3.6

4.6

5.5

8

944

1,292

1,514

Group
consolidated 4

245 296 377 449 551

613

782

1,704

2012 2013 2014 2015

2017

2018

2019 (FY)

2016

16

Domestic

7.1
1,200

20

12

9.9

0

We believe diversity in the manager position and above leads togreater customer satisfaction and growth potential by enablingstrategies, product development and organizational managementfrom diverse viewpoints and sense of value. We began tallying suchdata on a Group consolidated basis, including overseas, in FY2016.

(persons)
50,00040,0000

Number of employees in Japan
Number of overseas employees (“( )” indicates ratio)

9,236

6,003 6,228 6,448 8,573 8,759 9,184 8,958（21.6%）（22.2%）（16.4％）（16.8％）（16.8％）（21.1％）（21.6％）（22.2％）

30,00020,000400,000
200,000

2014

41.7

100

Number and ratio of global employees(GJ)

CO2 emissions (left axis)
Total energy consumption (right axis)

2013

88.9

Ratio of female
managers(right axis)

Domestic

600
300

20,0000

2016

Group consolidated

900

120,000

80,000

2015

1,200

CO2 emissions and total energy consumption8

100,000

2014

33.3

1,500

Paperless meetings, PDF-format pamphlets and portable device andtablet use are being actively incorporated to help reduce paper use
through various measures including increased application of RPA*6.
In FY2019, while the volume of OA paper decreased, printed materials
temporarily increased owing to the change in era name in Japan andproduct revisions.

140,000

2013

1,800

10,000(t­CO2)30.8(persons)

15,000

0

30.8

36.4

93.1

（％）

Number and ratio of female managers7

20,000

5,000

92.3

96.4

More than one-third of the full Board of Directors consists of independent Outside Directors to ensure highly transparent management.
Monitoring and oversight functions are thus enhanced by incorporating
perspectives that are independent from management.

Amount of paper usage
（t）

95.0

30

85
0

94.6

Attendance rate (right axis)

30,640 30,827 31,910 32,044 31,882 32,111 32,509 32,346（83.6％）（83.2％）（83.2％）（78.9％）（78.4％）（77.8％）（78.4％）（77.8％）

10,000
0

2012

2013

2014

2015

2016

2017

2018

2019 (FY)

Increasing the number of employees from different cultures
and with a diverse sense of values, and deepening mutual
understanding among employees, leads to a stronger organizational
capacity for the Group and is a driving force
in international business development in particular.

5. Customer survey choices were streamlined from ﬁve options to four in FY2015 and uniﬁed within the Group. This ﬁgure indicates the ratio of customers whochose the top two options (MSI and ADI).
6. Acronym for Robotic Process Automation: Increased efﬁciency and automation of ofﬁce operations using AI and other cognitive technologies.
7. Results as of April 1 of the subsequent ﬁscal year.
8. Total energy consumption is calculated based on the energy conversion coefﬁcient from the Law Concerning the Promotion of Measures to Cope with Global
Warming. Electric power energy use, however, is 3.6 GJ/MWh. Also, from FY2017, the energy for the parts of Group buildings leased to tenants is excluded.
9. FY2018 data reviewed in an effort to increase the accuracy of activity amount data subject to calculation.
INTEGRATED REPORT 2020051

10-Year Performance
Key Management Indicators
FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017

Ordinary income

3,404,942

3,764,986

4,315,787

4,362,754

4,689,658

5,013,038

5,335,239

5,217,835

Net premiums written

2,543,786

2,555,551

2,639,015

2,811,611

2,939,113

3,078,732

3,407,389

3,440,976[Net premiums written]1[2,541,400] [2,558,844] [2,639,419] [2,809,581] [2,940,756] [3,078,995] [3,406,966][3,446,940]

Insurance claims paid (non-life + life)

1,646,851

Consolidated ﬁnancial data (¥ million)

2,133,440

1,961,399

2,025,545

1,996,675

2,023,599

2,162,773

2,311,295

21,005（96,211）150,300

190,259

287,061

291,578352,612211,548

5,420（169,469）

83,62593,451

136,247

181,516

210,447

154,057

Comprehensive income/(loss)（189,373）（88,136）543,938

322,865

807,972（233,116）

114,294

311,096

Net assets

1,663,381

1,512,134

2,021,625

2,285,832

3,036,663

2,725,274

2,734,432

2,968,387

11,445,003

14,537,204

15,914,663

16,878,148

18,788,046

20,303,649

21,234,300

22,472,927−

553.8%

738.8%

772.5%

803.9%

743.3%

872.6%

819.3％

Equity ratio

14.11%

10.27%

12.56%

13.39%

16.00%

13.29％

12.76％

13.09％

Return on equity (ROE)

0.37%（10.91%）

4.79%

4.42%

5.18%

6.36％

7.78％

5.45％

Combined ratio4 (domestic non-life insurance)

102.9%

116.4%

105.1%

98.2%

96.0%

91.6％

92.6％

92.8％

Group Core Proﬁt5/Group Adjusted Proﬁt6

14,500（87,500）

87,40094,800155,700

147,500

213,700

105,100

Group ROE7/Group Adjusted ROE8

0.8%

（5.6%）

5.0%

4.5%

5.9%

5.2%

7.9%

3.7％

Net income per share (basic)98.68（272.49）

134.46150.58221.34298.72350.94260.04

Net income per share (diluted)10

−

−

−

−

−

350.90259.98

Ordinary proﬁt/(loss)
Net income attributable to owners of the parent

2

Total assets
Consolidated solvency margin ratio

3

Per share data (yen)−Group Core Proﬁt/(loss) per share/
Group Adjusted Proﬁt11

23.27（140.82）

140.56

152.79252.99242.83356.39177.47

Dividend per share (DPS)

54.00

54.00

54.00

56.00

65.00

90.00

120.00130.00Net assets per share (BPS)

2,597.19

2,400.48

3,215.33

3,646.22

4,911.40

4,469.58

4,572.82

4,964.64

Year-end market price (closing price) (yen)

1,894

1,699

2,066

2,364

3,370

3,136

3,540

3,355

Price-earnings ratio (PER) (times)

218.06

−

15.36

15.70

15.23

10.50

10.09

12.90

Price-to-book ratio (PBR) (times)

0.73

0.71

0.64

0.65

0.69

0.70

0.77

0.68

Dividend yield

Stock price‒related data

12

12

2.9%

3.2%

2.6%

2.4%

1.9%

2.9%

3.4%

3.9%

Annual total shareholder return (TSR)13（24.9%）（7.4%）

24.8%

17.1%

45.3%

（4.9%）

16.7%（1.6%）

Stock price volatility (annual rate)14

32.3%

26.6%

35.8%

39.0%

25.3%

41.0%

36.9%

19.7%

Total dividends

33,58333,58233,582

34,71539,90054,447

71,48977,014

Dividend payout ratio (consolidated)

622.1%

−

40.2%

37.2%

29.4%

30.1%

34.2%

50.0%

Aggregate amount of repurchase15

9,999

0

4,996

9,997

29,992

19,99629,93829,981[Average repurchase price] (yen)[2,012]−[2,565][2,523][3,373][3,044][3,738][3,440]Shareholder return ratio

300.2%

−

44.1%

47.2%

44.9%

50.4%

47.7%

101.8%

−

−

89.3%

89.4%

89.1%

95.5%

95.6%

96.0%

36,53836,92936,64337,05538,35840,61740,641

41,295(of which consolidated overseas subsidiaries)

5,621

5,772

6,003

6,228

6,448

8,573

8,759

9,184

Number of female managers (domestic)

−

−

245

296

377

449

551

613

Number of employees participating insocial contribution activities (domestic)−−

16,142

11,373

15,124

16,507

19,861

20,022

119,953t-CO2 120,930t-CO2

104,669t-CO2

12

Capital management policy data (¥ million)

16

Non-ﬁnancial data
Customer satisfaction(accident response for automobile insurance)17
Number of employees

18

CO2 emissions (Scope 1 + 2)19
Paper consumption (domestic)

106,985t-CO2
21,680t

98,961t-CO2 114,246t-CO2 111,818t-CO2 123,567t-CO2
16,445t

14,445t

16,036t

13,283t

13,940t

A checkmark indicates that FY2019 ﬁgures have been assured by KPMG AZSA Sustainability Co., Ltd.
052

MS&AD INSURANCE GROUP HOLDINGS

13,005t

11,085t

CEO Message

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MS&AD s Strategy

TSR for the Last Five Years
FY2018FY20195,500,438

5,168,361

3,497,572

3,573,732

150.0

TOPIX

MS＆AD

TOPIX Insurance Sector Index

140.0[3,500,403] [3,573,732]

130.0
120.0

2,528,145

2,403,833

110.0

290,847

157,701

100.0

192,705

143,030（79,701） （157,288）
2,778,047

2,494,038

23,132,539

23,196,455

807.3%

781.3%

11.89%

10.57%

6.77%

5.50%

99.4%

95.8%

189,800

233,100

6.1%

8.0%

90.0
80.0
70.0
60.0
2015/3/31

Past 1 Year

Past 4 Years

Past 5 Years
8.5%[1.6%]

TOPIX（9.5%）（14.1%） [-7.3%] （0.4%） [-0.1%]

14.2%[3.4%]

1.8%[0.4%]TOPIX Insurance
Sector Index（9.2%） （9.3%） [-4.8%] （5.9%） [-2.0%]

23.8%[5.5%]

4.6%[0.9%]

323.87404.77140.00150.004,712.11

4,308.37

3,370

3,025

1.

10.25

12.18

0.72

0.70

2.
3.

4.2%

5.0%

4.6%

（5.8%）

16.2%

19.4%

Notes:
1.
The graph above shows the proﬁt margin where an investment is made at the end of March 2015, taking into consideration
dividends and share prices as of the end of March 2020. The MS&AD chart indexes the investment results, with dividends
added to the share price (assuming no reinvestment of the dividends) with the investment amount at the end of March
2015 set as 100. Similarly, the indices compared use both the TOPIX and the Tokyo Stock Exchangeʼs industry-speciﬁc index(insurance industry), with the data incorporating dividends.
2.
The table above shows the investment return (including dividends) as of the end of March 2020 for investments from one
year earlier (end of March 2019) to ﬁve years earlier (end of March 2015).
3.
The values within brackets [ ] from two years earlier to ﬁve years earlier show the average annual return, annualized bytaking the geometric mean of the investment return for the relevant period.
Source: Calculated by MS&AD Holdings based on data from Bloomberg

4.

5.
6.

81,72085,770

42.6%

60.4%

31,972

34,999[3,482][3,407]

60.0％

52.0％

11.
12.
13.

96.6％

96.5％

41,467

41,582

14.
15.

8,958

9,236

782

944

23,601

27,673

11,080t2020/3/31[3.3%]

248.22

89,055t-CO2

Past 3 Years

2019/3/31

13.7%

328.60

10,545t

Past 2 Years

2018/3/31（5.8%） （1.2%） [-0.6%] （2.7%） [-0.9%]

248.36

98,110t-CO2

2017/3/31

MS&AD

328.72※20

2016/3/31

7.
8.
9.
10.

16.
17.
18.
19.
20.

Figures are presented exclusive of the Good Results Return premiums of Mitsui Sumitomo Insuranceʼs proprietary automobile insurance product “ModoRich,” which contains a special clause for premium adjustment and refund at maturity.
The net income or net loss attributable to the parent company shareholder is disclosed.
Consolidated solvency margin ratios have been calculated for years beginning from FY2011 reﬂecting the revision of the
Insurance Business Act, etc.
Combined ratio ﬁgures (domestic non-life insurance) are based on the simple sums of the non-consolidated ﬁgures for MSI,ADI and Mitsui Direct General. For FY2010, however, combined ratio ﬁgures are based on the simple sums of the non-consolidated ﬁgures for MSI, Aioi, NDI and Mitsui Direct General. Moreover, for FY2018 onward, combined ratio ﬁgures are
based on the simple sums of the non-consolidated ﬁgures for MSI and ADI.
Group Core Proﬁt = Consolidated net income - Net capital gains/losses on stock portfolio (gains/losses on sales, etc.) - Net
evaluation gains/losses on credit derivatives - Other incidental factors + Equity in earnings of the non-consolidated Group
companies (prior to FY2017)
Group Adjusted Proﬁt = Consolidated net income + provision for catastrophe loss reserve and others - other incidental
factors (amortization of goodwill and other intangible ﬁxed assets, etc.) + equity in earnings of the non-consolidated groupcompanies (FY2018 onward)
Group ROE = Group Core Proﬁt Consolidated total net assets (average of beginning and ending amounts excluding stockacquisition rights and non-controlling interest) (prior to FY2017)
Group Adjusted ROE = Group Adjusted Proﬁt average of beginning and ending amounts on the B/S of adjusted net assets(consolidated net assets + catastrophe loss reserve and others - goodwill and other intangible ﬁxed assets) (FY2018)
Net income/(loss) per share (EPS) disclosed.
Net income per share (EPS) and Diluted EPS disclosed. Diluted net income/(loss) per share data prior to FY2015 is notdisclosed because there was no potential dilution during that period.
Group Core Proﬁt/(Loss) per share (prior to FY2017) or Group Adjusted Proﬁt/(Loss) per share (FY2018)
Stock price-related indicators are based on the market price of the stock at the end of the ﬁscal year.
Total shareholdersʼ return is calculated as follows: (ﬁscal year-end stock price - previous ﬁscal year-end stock price + annual
dividends) previous ﬁscal year-end stock price
Stock price volatility is the annualized standard deviation of returns based on daily closing prices.
The aggregate amount of repurchase for FY2019 was ¥35.0 billion (maximum); the period of repurchase applicable to theaggregate amount of repurchase of ￥20.0 billion (maximum) was from November 20, 2019, to March 24, 2020 (resolved at
the Board of Directorsʼ meeting held on November 19, 2019); the period of repurchase applicable to the aggregate amountof repurchase of ￥15.0 billion (maximum) was from May 21, 2020, to September 18, 2020 (resolved at the Board of
Directorsʼ meeting held on May 20, 2020).
Shareholder return ratio = (dividends applicable to the ﬁscal year (paid in December of that year and June of the followingyear) + value of share repurchases during the period through the time of the general shareholdersʼ meeting in the following
ﬁscal year) Group Core Proﬁt for the ﬁscal year (from FY2018: Group Adjusted Proﬁt)
Ratio of customers satisﬁed with accident response for automobile insurance (MSI and ADI). From FY2015, the client
survey was modiﬁed from ﬁve stages to four stages.
Number of female managers in positions of section manager or higher. (Figures are for April 1 of the subsequent ﬁscal year.)During the period from FY2010 to FY2016, CO2 emissions resulting from tenant use of rental properties were included in
Scope 1 + 2. Moreover, emissions for FY2010 to FY2015 were calculated prior to the purchase of MS Amlin, etc., so do notinclude emissions from these companies.
FY2018 data reviewed in an effort to increase the accuracy of activity amount data subject to calculation.
INTEGRATED REPORT 2020053

Growth Strategies by Business Segment

Domestic Non-Life Insurance Business
The Domestic Non-Life Insurance Business is the MS&AD Group s core business and boasts
the largest scale in Japan. The Group s three unique non-life insurance companies leverage avariety of sales channels, address the new risks arising from changes in the social environment
and progress in technological innovation, and provide safety and peace of mind.

Business Environment and Competitive Conditions
In an environment characterized by a diversiﬁcation in customer needsbrought on by changes in the structure of society and peopleʼs lifestyles,
the MS&AD Insurance Group provides products and services throughthree non-life insurance companies with business models based on
different products and sales channels. We have been able to maintainour business scale and competitive advantages by leveraging thestrengths of Mitsui Sumitomo Insurance, which is developing its global
business based on an expansive network centered on Mitsui Group andSumitomo Group, and Aioi Nissay Dowa Insurance, which is developing
a local community based business centered on Toyota Group andNippon Life Insurance Group, and Mitsui Direct General Insurance,
which specializes in direct sales to individual customers.

Net Premiums Written
Share in the domestic business

No.1

Group Numerical Management Targets(Simple sum of the non-consolidated ﬁgures for Mitsui Sumitomo Insurance, Aioi Nissay Dowa Insurance and Mitsui Direct General Insurance)

Next Challenge 2017(¥ billion)

300
250

Vision 2021

Group Core Proﬁt (Next Challenge 2017)
Group Core Proﬁt(Next Challenge 2017)

Next Challenge 2017(¥ trillion)

3.00

287.8

2.73

153.3

100

146.9

130.0

119.5

2.70

2.64

177.0
2.50

105

Non-Life Insurance Combined Ratio*
E/I Combined Ratio*

190.1

150

（％）

Net Premiums Written

2.75
200

Vision 2021

96.6
96.0

92.4 91.9

2.78

93.4

94.1

2.78
100

96.4 96.9
95.8

92.6

91.4

2.86

100.6
99.4

91.6

2.25

2.76

95.4

95

92.8
90

50
0

2014

2015

2016

2017

2018

2019

2020 2021 (FY)
(Forecast) (Target)

2.00

2014

2015

2016

2017

2018

2019

2020
(Forecast)

85

(FY)

*Please see the “Glossary of Insurance Terminology” (P. 98) for details.
Figures from FY2018 reﬂect the Mitsui Sumitomo Insurance and Aioi
Nissay Dowa Insurance totals.

Initiatives Aimed at Creating Shared Value with Society
The Mitsui Direct General Insurance Smile Fund is a donation fund based on participant activity that was launched in2014 in line with the 15th anniversary of the start of the business. Under this program, policy holders vote for NPOs
working in “trafﬁc accident prevention,” “environmental conservation” or “assistance for disaster recovery” programs
that are aimed at achieving the SDGs. Donations at a ﬁxed amount are determined based on the number of votes
received. The program aims to contribute to society through these donations while strengthening contact with
policyholders. To date, about 200,000 policyholders have participated in the program, with contributions reaching
about ¥21 million as of the end of February 2020.
054

MS&AD INSURANCE GROUP HOLDINGSCEO Message

Who We Are

Our Way

Special Report

Special Feature

Appendix

Our Platform

Data Section

MS&AD s Strategy

Progress in the Implementation of Key Strategies of

Vision 2021

Pursue the Group s Comprehensive Strengths

Expansion in Jointly Developed Products

Promote a Group
Coordination System

Number of policies of Observe and Protect Automobile Insurance(Dashcam Type) policies* topped 400,000 at the end of May 2020.
GK
クルマの保険自動車保険・一般用

ノンフリート

後ろからの事故も見守ります！あおり運転への対策にも！
2020年4月1日以降始期契約用

専用リアカメラのご案内（リアカメラはお客さまにご購入いただきます）

ドライブレコーダー（フロントカメラ）
が事故等により大きな衝撃（自力走行が困難と思われる程度の衝撃）
を検知した
場合、
その衝撃があった前後合わせて約１５秒間の映像を「イベント記録」
として保存し、内蔵された通信機能により、
リアカメラで撮影した映像も含めて当社に自動送信します。
ドライブレコーダー（フロントカメラ）が検知した衝撃が上記未満で、手動による通報を案内する画面表示がされる場合にもリアカメラで撮影した映像も含めて当社に自動的に送信されます。

特にご注意いただきたい事項（詳細は専用チラシをご確認ください）■ご契約の解約時の取扱い
本リアカメラは「タフ・見守るクルマの保険プラス」「タフ・見守るクルマの保険（ドラレコ型）「」『ドライブレコーダーによる事故発生の通知等に関する特約』をセットしたタフビズ事業用自動車総合保険」
専用に開発された商品です。
ご契約の解約時などには、
リアカメラは使用できなくなります。
■故障時の取扱い
故障の取扱いについては、メーカー保証の適用の範囲となります。
■リアカメラの取付け
お車の種類によっては、ご自身での取付け（取りはずし）が困難な場合があります。

ドライブレコーダーで見守るお客さまの安全運転■SDカードの取扱い
リアカメラを起動する前に、ドライブレコーダー（フロントカメラ）にセットされているSDカードに録画されている映像をパソコン等に保存してください。
■録画された映像の取扱い
当社に送信された映像を当社および提携先企業等は、保険金を支払うために必要な調査、
本サービスの改良・新機能の追加や新規サービス・新商品の開発または開発のための分析・研究、
安全・円滑な道路交通社会の発展に資する技術開発やモビリティサービスの開発・運営およびそれらのための分析・研究等の目的で使用します。

リアカメラはご契約の代理店（リアカメラ取扱店）
または専用Webサイトよりご購入いただけます。詳しくは専用チラシをご覧ください。

既にドライブレコーダーをお持ちのお客さまは、「タフ・見守るクルマの保険（スマホ型）」をご契約いただけます。

※1 詳しくは、「タフ・見守るクル
マの保険パンフレット
（スマ
ホ型）
」
をご覧ください。
※2 当社が定める条件を満たす
スマートフォンを保有している場合に限ります。
詳しくは代理店・扱者または当社までお問合わせください。

専用車載器とお持ちのスマートフォンでサービスをご提供します。

専用車載器をダッシュボードに取り付けることで、安全運転支援アラート（車線逸脱
アラート・前方衝突アラートは除きます）、
運転診断レポート、
事故緊急自動通報サービス、
見守りサービスを月々150円（保険期間1年で口座振替12回払の場合の保険料）でご利用いただけます。なお、
運転特性割引は対象外です。

※1「タフ・見守るクルマの保険プラス」
をご契約する場合は、『「タフ・見守るクルマの保険」
専用端末の貸与およびサービスご利用規約』（https://www.aioinissaydowa.co.jp/
corporate/service/telematics/personal.html）
が適用されます。
ご契約の解約時などに返却期限を過ぎてもドライブレコーダーをご返却いただけない場合や、お客さまの責めに帰すべき事由により破損・故障・盗難・紛失等が発生した場合には、違約金を請求させていただく場合があります。
※2 ドライブレコーダーの発送に一定期間を要します。始期日までにドライブレコーダーの到着が間に合わない場合がありますので、始期日から14日以上前までにご契約のお手続きをお願いします。
「タフ・見守るクルマの保険（ドラレコ型）」
からの切替の場合、お手元のドライブレコーダーを引き続きご利用いただけます。
※3 本サービスは、
ドライブレコーダーの取付状況・車両の状況・事故の状況・天候・通信環境等により、その機能が発揮されない場合があります。
（例）・ドライブレコーダーがＧＰＳの電波を受信できないときや、屋内・地下駐車場・山間部・トンネル内・ビルの陰等電波の届きにくい場所にあるとき・ドライブレコーダーが株式会社ＮＴＴドコモのＬＴＥ通信のサービスエリア外、または電波の弱い場所にあるとき（国外はサービス対象外です）※4 ドライブレコーダーは事故時の衝撃を検知して発報等を行っていますが、事故検知、衝撃時の映像の記録・保存・送信、事故連絡ができない等、その機能が発揮できないことがあります。
（例）・ドライブレコーダーが一定の衝撃を検知しなかったとき ・事故時の衝撃により、ドライブレコーダーが破損し、正常に作動しないとき ・エンジンが停止した（ACCがOFF）状態のとき、または始動直後でドライブレコーダーが起動中もしくはアップデート中のとき ・事故時にアクセサリーソケットから電源ケーブルが外れ、ドライブレコーダーの内蔵バッテリーが足りない場合 等※5 当社は、サービスの提供のためにドライブレコーダーの送信映像および走行距離、走行時間、速度、位置情報、加速度センサーによる計測値等を取得します。また、新規サービス・新商品の開発および研究、安全・円滑な道路交通社会の発展に資する技術開発やモビリティサービスの開発・運営およびそれらのための分析・（注）
研究等のため当社および提携先企業等の間で、共同で利用します。
※６ P3〜4に記載の保険料は、下記のご契約内容に基づくものです。

特約保険料
月額

事 故 の あとの 保 険 から
事 故 を 起こさ な い 保 険 へ

円

ご契約内容
〔タフ・見守るクルマの保険プラス、タフ・見守るクルマの保険（ドラレコ型）〕○始期日：令和2年1月、保険期間1年 ○自家用普通乗用車 20等級・事故有係数適用期間0年、35才以上補償、記名被保険者年令別料率区分：40〜49才、料率クラス：車両
クラス9、対人・自損クラス9、対物クラス9、傷害クラス9、初度登録年月：平成25年1月、長期優良割引、運転免許証の色：ゴールド、
使用目的：日常・レジャー使用○補償内容 対人賠償保険：無制限、
対人臨時費用特約：あり、
対歩行者等傷害特約：あり、対物賠償保険：無制限（免責金額なし）、
対物超過修理費用特約：あり、人身傷害保険：5,000万円、
自動車事故特約：あり、人身傷害家族臨時交通費用特約：あり（「タフ・見守るクルマの保険プラス」
のみ）、傷害一時金特約：あり（傷害一時金倍額払特約セット）、
ロードサービス費用
特約〈代車提供型〉：あり、
代車補償拡張特約：J3クラス ○払込方法 一時払 ○記載の保険料は令和2年1月現在の保険料に基づくものですので、保険料の改定等により変更となることがあります。 ○「タフ・見守るクルマの保険プラス」の2年目の保険料は、
上記ご契約内容に基づき保険料改定等の要素がなかったものとして算出したものです。
●このパンフレットは概要を説明したものです。
ご契約にあたっては必ず「タフ・クルマの保険パンフレット」
および「重要事項のご説明」
をあわせてご覧ください。また、
詳しくは「ご契約のしおり（普通保険約款・特約）」をご用意していますので、必要に応じて当社ホームページでご参照ください。もしくは、代理店・扱者または当社までご請求ください。
ご不明な点につきましては、代理店・扱者または当社にお問合わせください。

●「タフ・クルマの保険」
は「個人総合自動車保険」「、タフ・見守るクルマの保険プラス」
は「ドライブレコーダーによる事故発生の通知等に関する特約」
および「運転特性情報による保険料算出に関する特約」がセットされた個人総合自動車保険、「タフ・見守るクルマの保険（ドラレコ型）」は「ドライブレコーダーによる事故発生の通知等に関する特約」がセットされた個人総合自動車保険、「タフ・見守るクルマの保険（スマホ型）」
は「事故発生の通知等に関する特約」がセットされた個人総合自動車保険、「タフビズ事業用自動車
総合保険」
は「一般総合自動車保険」のそれぞれのペットネームです。
●契約取扱者が当社代理店または社員の場合は、当社の保険契約の締結権を有し、保険契約の締結・保険料の領収・保険料
領収証の発行・ご契約の管理などの業務を行っています。
したがいまして、
当社代理店または社員と契約され有効に成立した
ご契約につきましては、当社と直接契約されたものとなります。

クルマにも、

ビデオ判定を。

「タフ・見守るクルマの保険プラス」はテレマティクス技術で後付けのドライブレコー
ダーから取得した走行データに基づき、安全運転の度合いを保険料に反映する
国内初の自動車保険です
国内初の自動車保険の自動車保険です

Expansion in Jointly Developed
Products

安 全 運 転 を進 化 さ せる 保 険︒

*This automobile insurance program
uses a specialized dashcam with acommunication function that when it
detects an accident automaticallysends a report to the insurancecompany and enables a dedicatedoperator to advise policyholders on
initial response options to theaccident.

Mitsui
Sumitomo
Insurance

プロモーションビデオもご覧ください。
（5分53秒）（令和元年9月、
当社調べ）〒150-8488 東京都渋谷区恵比寿1-28-1『見守るクルマの保険（ドラレコ型）』は、
当社オリジナルの専用ドライブレコーダーを利用したサービスにより、（カスタマーセンター）
TEL：0120-101-101（無料）
電話受付時間
平日：9：00〜19：00 土日・祝日：9：00〜17：00
お客さま、ドライバーやそのご家族等に安心をお届けする自動車保険です。
（年末年始は休業させていただきます）（注）保険期間1年・一般分割12回払の場合の「ドライブレコーダーによる事故発生の通知等に関する特約」の保険料（一時払の場合、年間9,700円）です。
https://www.aioinissaydowa.co.jp/※『見守るクルマの保険（ドラレコ型）』
は、『GK クルマの保険』
または『自動車保険・一般用』に「ドライブレコーダーによる事故発生の通知等に関する特約」をセットした契約の略称です。

（200301T）（2020年3月承認） GB19A011441 （16-513）［JL57］

いつもの 運転が「安全」、
万が一のときも「安心」。

個人総合自動車保険

各サービスを動画でもご覧いただけます。
（6分21秒）

令和2年1月以降保険始期用「タフ・見守るクルマの保険プラス」はベルマーク協賛商品です。

Aioi Nissay
Dowa
Insurance

MS&ADインシュアランスグループは、
サッカー日本代表を応援しています。

Favorable Sales of Jointly Developed Cyber Risk Products■ Direct premiums written*(¥ billion)

CAGR 30.6%

8.0
6.0
4.0

3.81

6.50
InterRisk
Research &Consulting

4.89

2.0
0

2017

2018

2019

Providing risk diagnosis and risk consulting
services for both internal and external risks(FY)*Total for Mitsui Sumitomo Insurance and Aioi Nissay Dowa InsuranceGroup coordination to provide comprehensive
cyber risk services to companies

Promote Digitalization■We are utilizing digital technologies, including throughlarge-scale system investment to update online systems, tobuild a foundation that steadily advances business process
reforms and reduces future business-related expenses.
■ We released “MS1 Brain”, an AI-based agent support system,
and a telematics claims services systemthat uses digital data from connected carsand devices to assist in accident response
efforts.

■ Expense ratio1 trend

35.1％

Expense ratio excluding R&D costs
2

33.2％

32.2％

33.6％

33.1％
32.5％

31.9％

34.9％

33.9％

32.4％

30.0％
2013

2017

2018

2019

2020

2021

Future (FY)
(Forecast) (Outlook) target

1. Simple sum for Mitsui Sumitomo Insurance and Aioi Nissay Dowa
Insurance on a non-consolidated basis
2. Investments in R&D to address changes in the environment, including
infrastructure building, and to improve productivity and quality

Reform the Portfolio■We are working to bolster proﬁtability by diversifying the
product portfolio that forms the source of earnings byenacting measures aimed at expanding casualty insurance andbringing ﬁre insurance to proﬁtability■ Underwriting proﬁt/(loss) before reﬂecting
catastrophe reserves*
119.9

FY2019(¥ billion)[Examples of our efforts]

7.7● Disaster prevention and mitigation proposals using RisTech*and the functionality of MS&AD InterRisk Research Institute &Consulting.
● Initiatives to improve proﬁtability in ﬁre insurance policies forcondominium management associations.
● Increasing sales of packaged products in casualty products forsmall to medium-sized companies.
*RisTech is a new service developed by Mitsui Sumitomo Insurance inpartnership with Accenture that offers big data and analysis
algorithm-based disaster prevention and mitigation proposals.

Fire

5.3

25.4

Marine Personal Voluntary Other
Accident Automobile

Diversiﬁcation of proﬁt sources (Image)-116.6

Improvement in
proﬁtability

Earnings
expansion

Expectation for
FY2021Marine Personal Voluntary Other
Fire
Accident Automobile*Simple sum for Mitsui Sumitomo Insurance and Aioi Nissay Dowa
Insurance on a non-consolidated basis (the graph for FY2021 reﬂects
current plan targets)
INTEGRATED REPORT 2020055

Domestic Life Insurance Business
The Domestic Life Insurance Business is a key growth business within the MS&AD
Insurance Group. Comprising two companies with diﬀerent business models, the business isshowing world-class growth and proﬁtability by oﬀering not only medical/nursing careproducts, as well as death beneﬁt and other protection-type life insurance products, but also
asset-building products designed to support retirement lifestyles and asset inheritanceproducts that can be used for inheritances and living gifts.

Business Environment and Competitive Conditions
In a business environment characterized by interest rates
remaining at ultra-low levels, growing interest in society incustomer-ﬁrst operations, and the arrival of an age in which living
100 years is not uncommon, the two domestic life insurancecompanies through their distinctive and powerful business
partners, including ﬁnancial institution channels and the largest
non-life insurance agency network in Japan owned by the twocore non-life insurance companies, develop and provide to theircustomers products and services that align closely to diversifying
consumer needs, including those focused on medical and nursing
care, inheritance and living gifts, and longevity-related risks.

Insurance premiums(FY2019)
Among 28 companies andgroups in Japan

No.9

Source: MS&AD based on published ﬁgures for each company

Group Numerical Management Targets■ Group Core Proﬁt, Group Adjusted Proﬁt
Next Challenge 2017(¥ billion)

50

Group Adjusted Proﬁt (Vision 2021)

34.332.6
31.6

30
20

Vision 2021

20.4

25.0 25.1

29.7

41.0

2.0

1.5

647.8

890.2 912.0

962.0

595.8

200
0
2014 2015 2016

2017

2018

2019

2020 2021 (FY)
(Forecast)(Target)

Vision 2021

Next Challenge 2017
1.76
1.50

1.55 1.50 1.59

1.39
1.00 1.00

0.5

056

600

794.2 835.5 819.4

400

1.0

0.0

1,000
800

25.0

■ Life Insurance Premiums (Gross Premiums)(¥ trillion)

Vision 2021

1,200

10
0

Next Challenge 2017(¥ billion)

Group Core Proﬁt (Next Challenge 2017)40■ EEV (Mitsui Sumitomo Aioi Life Insurance)

2014

2015

2016

2017

2018

MS&AD INSURANCE GROUP HOLDINGS

20192020 2021 (FY)
(Forecast) (Target)

2014

2015

2016

2017

2018

2019

2020 2021 (FYE)(Forecast)(Target)

CEO Message

Who We Are

Special Report

Our Way

Special Feature

Our Platform

Appendix

Data Section

MS&AD s Strategy

Initiatives for Creating Shared Value with Society
Mitsui Sumitomo Aioi Life Insurance is engaged in a variety of activities, including the
distribution of free booklets explaining advanced medical technologies, the sponsorshipof seminars on breast cancer and uterine cancer, participation in local monitoring
activities and (orange ring) dementia support training courses for employees and agentsas part of its effort to address social issues such as the increased burden on nursing andmedical care. Moreover, in addition to the consultation service for medical andhealth-related issues, the company in April 2020 launched initiatives aimed at supporting
the long and healthy lives of its customers, including through the creation of aconsultation service focused on nursing care and dementia.
Mitsui Sumitomo Primary Life Insurance is focused on the coming age in whichliving to 100 years is not uncommon and is accordingly creating support mechanisms fora super-aged society. The longer one lives, the more pension one receives, so in addition
to term-based insurance that focuses on longevity risk, the company is developing
specialized nursing care annuity policies, and social contribution policies that allow thedesignation of public interest organizations as beneﬁciaries. The company is also
providing products and services that respond to the diversiﬁcation of social needs andchanges in society, including original business games that promote investment educationand offer college students and teachers a glimpse of life in an age in which living to 100
years is not uncommon.

Progress in

Vision 2021

An Orange Ring for
Those Providing Support
for Dementia Sufferers

Original Business
Card Game: Life 100

Strategies
TopicsMitsui Sumitomo Aioi Life Insurance
In addition to death beneﬁt products, the company is working to achievesustainable growth and enhanced corporate value by developing products tomeet the needs of its customers, including medical and nursing careinsurance products, and leveraging its ability to offer solutions through avariety of sales channels, with an emphasis in particular on the agent
networks of the two core non-life insurance companies in the Group.
▶Pursue the Groupʼs Comprehensive Strengths
・Strengthen cross-selling through the integration of life and non-life
insurance management▶Promote Digitalization
・Strengthen customer contact points and support agent activity though
the promotion of digital marketing▶Reform the Portfolio
・Develop products based on progress in medical technologies anddevelopments in nursing care and dementia care・Expand sales in highly proﬁtable insurance products that are resistant
to interest-rate ﬂuctuations

Mitsui Sumitomo Primary Life Insurance

個人年金は、
未来への贈り物。

With the goal of accommodating the varied needs of our customers,
including in regard to asset inheritance, asset utilization and asset building,the company is not only promoting detailed sales activities to boost its sales
capabilities on ﬁnancial institution sales ﬂoors but also taking the lead inﬁnancial institution over-the-counter sales by providing a variety of training
and education for those charged with attracting customers.
▶Pursue the Groupʼs Comprehensive Strengths
・Promote joint efforts within the Group to improve quality andproductivity▶Promote Digitalization
・Strengthen competitiveness by promoting paperless solicitation
activities
・Bolster support for agents and their staff through the use of the newest
technologies▶Reform the Portfolio
・Promote long-term asset-building support, including through an
expansion of ﬂat-rate payment products
・Expand the portfolio of products catering to customer needs

We have a management target for the life insurance
cross-selling ratio (the ratio of agents selling bothlife and non-life insurance) as part of our effort topromote cross-selling. About 370,000 third-party
long-term policies held by the two core non-life
insurance companies were transferred to thecompany in April 2019, and targets including thosetransferred policies were established for ﬁscal 2020and following years.

■Life insurance cross-selling ratio*
17.7%

14.1%
2017

14.9%

2018

15.4%

2019

18.5%

2020
2021 (FY)(Target) (Target)*The number of policies in force acquired throughcross-selling channels (professional, corporate, automobile
sales dealers) divided by the number of Mitsui Sumitomo
Insurance/Aioi Nissay Dowa Insurance automobile and ﬁreinsurance policyholders. (From ﬁscal 2020, the number ofpolicyholders (the numerator) includes transferred long-term
third-party policyholders.)

TopicsWith the goal of fostering a better understanding of therisks of foreign currency denominated insurance, we
are working to improve the readability of our brochuresand supplementary information, while simultaneously
strengthening training for agents at ﬁnancial
institutions handling sales. In May 2019, we developed
an easy explanation guide to help prevent complaints
about foreign currency denominated insurance sales.
In April 2020, we equipped the Tokyo Success Training
Center with the latest digital devices as part of oureffort to further improve agent training.

INTEGRATED REPORT 2020057