T&D Life Group

Corporate Responsibility Report 2009
The Insurance Group You Can TrustContents
About Corporate Responsibility
About Corporate Responsibility Report 2009 ･････････････ 1

3 .1

3 .2

3 .3

3 .4

3 .6

3 .7

The T&D Life Group･･････････････････････････････････････････････････････････ 3

Period Covered by This Report
April 2008 to March 2009 (annual)▲

A Talk with the President ････････････････････････････････････････････････ 5(Also includes reports on some activities after April 2009.)

Management

P The Public Mission of the Life Insurance Industry ･･･ 10

P Corporate Governance ････････････････････････････････････････････ 13

P Toward Openness in Management ･･････････････････････ 19

P Economic Aspects････････････････････････････････････････････････････ 21

Social Aspects
P Together with Our Customers ･･･････････････････････････････ 23
P Together with Our Employees ･･･････････････････････････････ 31
P Together with International Society and Local
Communities ･････････････････････････････････････････････････････････････ 34

Environmental Aspects
P Together with the Global Environment ････････････････ 37

For further information, please contact:
Public Relations Department, T&D Holdings, Inc.

▲

Economic Aspects

Next Issue (Planned)
November 2010▲

P Risk Management ･･･････････････････････････････････････････････････ 18

Previous Issue
January 2009▲

P Compliance ･･･････････････････････････････････････････････････････････････ 16

Published in
December 2009▲P Business Activities of the Three Life Insurance
Companies ･････････････････････････････････････････････････････････････････ 11

All companies and foundations in the
T&D Life Group（☛p. 4）▲

P The T&D Life Group’s Corporate Responsibility ･･･ 9

Scope of Report

1-2-3 Kaigan, Minato-ku, Tokyo 105-0022, Japan
E-mail: csr@td-holdings.co.jp■ About the Front Cover
All the members at the T&D Life Group
combined our efforts to build a stable andpeaceful society and living through thebusiness activities of the life insurance andother businesses the Group carries out.
The large heart-shaped cloud symbolizes
circulating water that supports all forms of
lives on the Earth and a sustainable terrestrial
environment. It also expresses our desire todiscreetly protect a society full of smiles, justlike a cloud floating peacefully in a clear sky.

T&D Life Group Corporate Responsibility Report 2009

G3 GRI Content Index ･･･････････････････････････････････････････････････ 41
Third-party Opinion ･･･････････････････････････････････････････････････････ 45
Establishing Connections, Fostering Communicationin the Group ･･････････････････････････････････････････････････････････････････････ 46

1

T&D Life Group Corporate Responsibility Report 2009

T&D Life Group

Corporate Responsibility Report 2009
The Insurance Group You Can Trust

1-2-3 Kaigan, Minato-ku, Tokyo 105-0022, Japan
http : //www.td-holdings.co.jp/e/E-mail : csr@td-holdings.co.jp

Report 2009
■ Editorial Policy

3. 5This report was prepared aiming at providing thestakeholders with a clear picture about the concept on andapproach to corporate responsibility at the T&D Life Group.
The 2009 report details the Group’s corporate responsibility
activities centering on the public mission of our businesses,
and explains the steps taken to implement corporate
responsibilities for customers, international and local
communities, and the global environment.
In the making of the 2009 report, we duly took into
consideration the opinions of employees (☛ p. 46), who
are among the important stakeholders, and worked
together with the CSR Promotion Project Team at T&D
Holdings to enrich and improve the contents anddescriptions of this report.

GRI Guidelines
This report has been prepared following the Sustainability Reporting
Guidelines 2006, G3 release, published by the Global Reporting
Initiative (GRI), which are the most widely accepted global
sustainability reporting standards for corporate responsibility reports
and environmental reports, paying due regard to the materiality.
To facilitate easy access by responsible investors, in particular, thereport follows the framework and reporting principles of the GRI
Guidelines, and aims at providing the readers with a comprehensive
overview of our corporate responsibility activities by this single report.
Specific number of the corresponding GRI Indicators such as 3.5
is written in the relevant text, and the GRI Index based on the G3
Guidelines is available at the back of the report (☛ p. 41–44).

■ Third-party Opinion

3. 13

Mr. Takaji Hishiyama, principal of the Center for Corporate Behavior, who has expert wisdom and good insight in corporate
ethics, corporate responsibility and socially responsible investments, provides a third-party opinion and advice regarding thecontents of this report (☛ p. 45).

The T&D Life Group and Stakeholders

4. 14

Customers
Shareholders/
Investors

Regional
Communities/
Society

Providing appropriate
returns on investments

Activities contributing
to society as a community
memberGovernment
Entities
Playing a public role in society

Sales Agents
Providing excellent products and services
Partnering for mutual
cooperation and prosperity
Business
Partners
Fair dealings

Effective and highly transparent corporate governanceThorough compliance
Proactive communication
Environment Protecting the environment, everyone’s home

Employees
Providing workplaces thatmake work meaningful andpleasurable[Explanation of Terms]
Global Reporting Initiative (GRI): The Global Reporting Initiative (GRI) is a network-based organization that has pioneered the development of the world smost widely used sustainability reporting framework and is committed to its continuous improvement and application worldwide.
http://www.globalreporting.org/

T&D Life Group Corporate Responsibility Report 20092

The T&D Life Group
Description of Companies

2.1(as of March 31, 2009)

2.4

Business Performance

2.8

T&D Holdings, Inc.
Established E April 2004
Head office location E 1-2-3 Kaigan, Minato-ku, Tokyo 105-0022, Japan
Capital stock E 147.6 billion yen
No. of employees E 108
Independent auditor E Ernst & Young ShinNihon LLC
Description of business E Holding company for the T&D Life Group as well as for asmall-amount short-term insurance company, conducting
the following:
Management control of life insurance subsidiaries and		affiliates under the Insurance Business Law of Japan and		other laws and regulations
Other businesses associated with the above

Taiyo Life Insurance Company

Established E February 1948 (Founded May 1893)
Head office location E 1-2-3 Kaigan, Minato-ku, Tokyo 105-0022
Capital stock E 62.5 billion yen
No. of employees E Sales : 8,226; Customer service: 937; Administrative: 3,032.
Total 12,195

Daido Life Insurance Company

Year ended
March 2007

T&D Financial Life Insurance Company

Established E July 1947 (Founded April 1895)
Head office location E 1-2-3 Kaigan, Minato-ku, Tokyo 105-0022, Japan
Capital stock E 56 billion yen
No. of employees E 340

4 . 13

The Life Insurance Association of Japan

Year ended
March 2008

Year ended
March 2009

Consolidated operating results(billion yen)

Ordinary revenues

2,286

2,330

2,539.8

Ordinary profit (loss)

158.1

155.7

(183.8)Net income (loss)

38.7

36.7

(89)

Consolidated balance sheet data(billion yen)

Total assets

14,090.9

13,366

12,498.5

Net assets

1,090.2

677.2

296.3

Consolidated per share information

Net assets per share(yen)

157.45149.24(359.65)

4,419.55

2,743.16

1,076.35

65.00

65.00

45.00

Net income per share (loss)

Annual dividend per share

Established E July 1947 (Founded July 1902)
Head office location E 1-2-1 Edobori, Nishi-ku, Osaka, Osaka 550-0002, Japan			 1-2-3 Kaigan, Minato-ku, Tokyo 105-0022, Japan
Capital stock E 110 billion yen
No. of employees E Sales: 4,156; Administrative: 3,439. Total 7,595●Industry association to which the three life insurancecompanies belong

2 .8(as of March 31, 2009)Management indicators

(billion yen)

Policy amount in force

59,899.959,340.3

58,097.1

New policy amount

6,634.7

6,201.8

5,991Core profit (loss)

173.3

159.7

(27)

3.6

4.2

(18.4)

2,072.1

1,621.6

866.5

Consolidated return on
equity (ROE) (%)
European Embedded Value(EEV)

Note: Management indicators other than ROE and EEV are based on aggregate non-consolidated
business results of Taiyo Life, Daido Life and T&D Financial Life.
Amounts of policies in force and new policies are the totals of individual insurance andindividual annuities.

T&D Holdings Inc. Shareholders (as of March 31, 2009)

2 .6

Composition of Shareholders(as of March 31, 2009)

Status of shares (50 shares per trading unit)
Item

Government andlocal public bodies

Financial
institutions

Financial productdealers

No. of shares held (trading unit)̶

1,493,122

68,091

Percentage of shares held (%)

̶

27.35

1.25

Other
corporations

Foreign corporations, etc.
Other than individuals

Individuals

Individuals andother

1,669,316

1,751,32640

478,047

5,459,942

30.57

32.08

0.00

8.76

100.00Principal Shareholders(as of March 31, 2009)

Name

3

Total

No. of shares held
(1,000 shares)

Percentage of shares held vs.
outstanding shares (%)

Japan Trustee Services Bank, Ltd. (Trust Account 4G)

14,9405.45

Japan Trustee Services Bank, Ltd. (Trust Account)

13,9805.10

The Master Trust Bank of Japan Ltd. (Trust Account)

12,744

4.65

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

10,524

3.84

CBNY-ORBIS Funds

9,674

3.53

CBNY-ORBIS SICAV

8,085

2.95

The Chase Manhattan Bank N.A. London SL Omnibus Account

5,068

1.85

NIPPONKOA Insurance Company, Ltd

4,819

1.76

State Street Bank and Trust Company 505225

4,681

1.71

Komatsu Ltd.

4,083

1.49

Total

88,602

32.35

T&D Life Group Corporate Responsibility Report 2009

Outline of the T&D Life Group’s Business

2 .2

2 .3

2. 7

The T&D Life Group is a corporate group mainly consisting of three life insurance companies (Taiyo Life,
Daido Life and T&D Financial Life) under the group holding company, T&D Holdings.
Taiyo Life, Daido Life and T&D Financial Life focus on and have a strength in the retail household market,
the small to medium enterprise market, and the OTC insurance sales via financial institution agents
respectively, and these group companies support clients’ daily life and business activities to make thebest use of their strong and unique business models.
■ Group Structure

Strengthening the insurance business through synergy
T&D Asset Management

T&D Information Systems

T&D Customer Services

T&D Confirm

Pet and Family Small-amount Short-term Insurance

Other Group companies

Retail household market

Small to medium enterprise(SME) market

Life insurance sales throughfinancial institution agents

T&D Life Group Companies and Foundations

2 .5

3 .6

3. 7

<Group companies> As of March 31, 2009, the T&D Life Group consists of T&D Holdings, 17 subsidiaries and two affiliated companies, which carry out life
insurance and other businesses as mentioned below●: Consolidated subsidiaries◆: Affiliated companies accounted for by the equity method

T&D Holdings, Inc. http://www.td-holdings.co.jp/e/Insurance andinsurance-related
businesses

Insurance(7 companies)
Insurance-related

Investment-related Investment Management andAdvisory
Businesses(7 companies)

Other● Taiyo Life Insurance Company

http://www.taiyo-seimei.co.jp/● Daido Life Insurance Company

http://www.daido-life.co.jp/● T&D Financial Life Insurance Company

http://www.tdf-life.co.jp/● Pet and Family Small-amount Short-term Insurance Company

http://www.petfamilyins.co.jp/● T&D Confirm Ltd.
● Toyo Insurance Agency Co., Ltd.

http://www.toyohokendaiko.co.jp/● Daido Management Service Co., Ltd.

http://www.dms-hp.co.jp/● T&D Asset Management Co., Ltd.

http://www.tdasset.co.jp/en/index.html● T&D Asset Management (U.S.A.) Inc.
● T&D Lease Co., Ltd.

http://www.taiyo-life-lease.co.jp/● T&D Asset Management Cayman Inc.
● Taiyo Credit Guarantee Co., Ltd.

http://www.taiyo-sinyo-hosyo.co.jp/◆ Alternative Investment Capital Ltd.

http://www.aicapital.co.jp/english/index.html◆ AIC Private Equity Fund General Partner, Ltd.
Administration-related
Administrationrelated Businesses(5 companies)

Foundations

General Affairs and Calculationrelated● T&D Customer Services Co., Ltd.
● Taiyo Life Career Staff Co., Ltd.

http://www.taiyo-seimei-careerstaff.co.jp/● T&D Information Systems, Ltd.

http://www.td-system.co.jp/● Zenkoku Business Center Co., Ltd.

http://www.zbc-jp.com/● Nihon System Shuno, Inc.

http://www.nss-jp.com/

Taiyo Life Himawari Foundation
Daido Life Welfare Foundation

http://www.daido-life-welfare.or.jp/

The Daido Life Foundation

http://www.daido-life-fd.or.jp/
T&D Life Group Corporate Responsibility Report 20094

A Talk with the President

1.1

1.2

Ms. Mariko Kawaguchi, who has observed the Group’s corporate responsibility activities
and provided the third-party opinion for the T&D Life Group CSR Report for the past four
years, talked with Naoteru Miyato, T&D Holdings representative director and president,
about what life insurance companies can do for a better tomorrow. Their talk took place
on August 7, 2009.

How Life Insurance Companies
Can Contribute to a Better Tomorrow
Naoteru
MiyatoMarikoKawaguchi

Representative Director and President
T&D Holdings, Inc.

General Manager, Chief Analyst
Management Strategy Research Department
Daiwa Institute of Research Ltd.

I	Nature of the T&D Life Group Has Been Formed
through a Quest for Distinctiveness

Kawaguchi The CSR Report 2008 included a special
feature about coexistence with forests.
Miyato Yes, last year’s report included an article about
Taiyo Life’s forest conservation activities, the green
space at the Daido Life Esaka Building (☛ p. 38), andother similar activities of the Group. The Green Space,for example, was the first attempt in this direction: when
Daido Life’s head office building in Osaka opened in1972, they wanted to do something unique, so they createda green space. I worked in that building for a number ofyears, and as you went into the space the air was refreshingand you could enjoy aroma of wood. The space, whichmeasures 2,500 square meters, has always been open to
the public. Right from the start it’s been a pleasant spot
for visitors, and it’s been used as a meeting place for thecommunity too.
Kawaguchi That really must have been a novel idea
35 years ago, when corporations weren’t much involvedin corporate responsibility activities. Is a liking for doing
something unique part of the corporate culture at the T&D
Life Group?
Miyato I suppose so. I think the Group’s three life
insurance companies do have a penchant for doing things
that other companies don’t. After all, there’s no progress
if you don’t try anything unique or different. The threecompanies specialize in different markets right now—
Taiyo Life in the household market, Daido Life in thesmall to medium enterprise (SME) market, and T&D

5

T&D Life Group Corporate Responsibility Report 2009

M.A., Hitotsubashi University (with concentration in
public economics and environmental economics).
Main areas of research: socially responsible
investment and corporate social responsibility.
Served as a member of the Tokyo Metropolitan
Environment Council, a council member of the NPO
Sustainability Forum Japan and representative
director of NPO Social Investment Forum Japan.
Part-time lecturer at Aoyama Gakuin University.

Financial Life in the market of life insurance sales throughfinancial institution agents—which has come aboutbecause each company has developed its uniqueness.
Kawaguchi You were the first life insurance company
in Japan listed in the stock exchange while other life
insurance companies remain a private mutual company. Is
this something to do with the uniqueness of the T&D LifeGroup?
Miyato In the early 1990s, several life insurers wentbankrupt due to the collapse of the bubble economy. We
also took steps to ride things out, cutting costs and so on.
But we realized there was a limit we could achieve throughcutting alone, and so we decided to go public to break adeadlock. The fact that we were the first to do this made ita worthwhile challenge, given the importance we place on
distinctiveness. The Revised Insurance Business Law wasenacted in 1996, so the legal conditions for public listing
were already in place. But since we were the first life
insurance company to make the change, it turned out to bequite a job as we went over the details with the Financial
Services Agency. We were really going into unknown
territory, but our efforts for public listing over the three
years resulted in the growth of the whole company andcultivated the corporate culture of taking on challenges.
Kawaguchi It’s quite interesting that a corporate culture
prizing originality ultimately led to the public listing.
Miyato As a public company, we were new. Since wefollowed the textbook and were very open to disclose
performance to the investors, we were able to build
a relationship of trust. That is why, I think, investors

supported us even bad time like last year when we recorded
our first annual loss in the aftermath of the financial crisis
starting last year.
Kawaguchi I see—that’s what behind your efforts
toward better information disclosure. Being consistent withgood disclosure could build trustworthiness and form thebasis for recognition as a sustainable company.
Miyato That’s right. As an insurance company, weare still required to pursue safety, soundness and public
mission. After going public, however, we are expected toachieve a growth additionally. This is a major change.
Kawaguchi Do you feel that such an external expectationfrom stakeholders for growth after public listing works forthe company?
Miyato Yes, this generated energy for growth inside theorganization. After we listed the shares, I experienced towhat and how the stock price would react. For instance,
when we develop new insurance products favorably
accepted by our customers, the stock price moves
instantaneously reflecting this. In a way, we always
feel tension as we are closely monitored and assessedby people in the world, not just Japan. Because of thistension, however, we feel that we must pour our energy
into governance in every facet of our daily operations,
down from top management to individual employees andsales representatives. This results in a vitalization of theorganization.

I	Life Insurance Companies Can Also Contribute toa Better Society through Asset Management

Kawaguchi Under the current difficult economic
conditions, companies are required to do more for the
global environment. In a broad sense, finance has the roleof redistributing financial resources in the society. The
Principles for Responsible Investment (PRI☛ p. 20) is aconcept that promotes this system in order to solve someproblems in the world. In the T&D Life Group, Taiyo
Life was the first Japanese life insurance company to sign
the PRI which indicates that it would incorporate ESG(environmental, social & corporate governance) issues
into investment activities. I guess that you have started tosupport a positive development of the world by integrating
ESG factors into the decision-making for a large amount ofassets under management.
Miyato Although other group companies have not signed
the PRI yet, asset management of life insurance companies
has been carried out with a basic stance of social andpublic benefits in mind, which is similar to the socially
responsible investments (SRI☛ p. 20).
Kawaguchi I hope that more aggressive approaches,such as adopting basic investment rules incorporating ESG
factors for the entire Group, would be taken in the future.
The life insurance business provides a security of life not
only to existing policyholders, but to future generations.
I am wondering if the current life insurance programs
can really continue supporting a linkage of human lives
over generations, given a rapidly deteriorating global
environment. I feel it necessary for insurance companies

T&D Life Group Corporate Responsibility Report 2009

6

A Talk with the President

both to offer insurance products and services directly to theindividuals and also contribute to the society indirectly.
I recently visited some pension funds in Europe andobserved the growing interest in ESG in alternative
investments, including forestry investments. I hope that the
T&D Life Group would carry out investments that may notlead to a deterioration of our life 20–30 years later.
Miyato The Group company T&D Asset Management
has launched a fund that invests mainly in companies thatengage in environment-related business in China. For
life insurance companies, which are in nature long-term
investors, I do believe that it is meaningful to incorporate
environmental and social elements into the investment
activities.
I believe that adding elements that take the environment orsociety into consideration is significant.
Kawaguchi Precisely because economic conditions
are so poor right now, there are many companies where
employees have come up with innovative solutions toenvironmental issues or tried new things to help theircompanies grow. There’s only one planet Earth, so weneed to act now to change social systems rather than
waiting for someone to take care of it. I feel that if the
T&D Life Group believes that life insurance will still exist
as a safety net for people’s livelihoods in the future, it
should place more emphasis on investing in businesses thatwill contribute to a better society.

I	Sharing the Corporate Responsibility Platform
Will Create Virtuous Cycle in the Entire Group

Kawaguchi Daido Life has a strong image of selfreliance pursuing its own way. Taiyo Life has a strong
lineup of products for women, and is viewed as a gentle
and warm insurance service provider because of the close
personal attention to customers. Which direction is theGroup heading to?
Miyato Well, even though they’re both a part of theGroup, those two companies have different histories andproducts. Daido Life’s customer base has been small to
medium enterprises while Taiyo Life targets householdsby keeping close communication with customers, like afamily doctor. The companies’ approaches were originally

7

T&D Life Group Corporate Responsibility Report 2009quite different, but over the past five years since the Groupwas formed, they have come to an idea that they can work
together sharing the common values such as “customers’
perspective” and “quality improvement.” Group companies
are gradually considering the best for the entire Group but
not just for the individual companies. To facilitate thischange, we started compliance officer exchange programon a trial basis in which compliance officers of the Group
companies work at different Group companies for a certain
period. This is exactly what we did during the preparation
phase of the Group unification.
Kawaguchi It takes time to get used to different corporate
culture and practices, but I suppose that it would stimulate
employees and that they would learn a lot from that.
Miyato There are many that people can only learn fromdifferent workplaces. We intend to increase our corporate
value by achieving a growth as a group while preserving
the individuality of the group companies. For example,
executives and employees of Taiyo Life recently started acleanup drive around the Shiodome Head Office Building(☛ p. 34), and this activity has gradually grown to include
executives and employees of Daido Life, T&D Financial
Life, T&D Holdings and other group companies. At the
National Sports Games for the Disabled (☛ p. 35), in
which Daido Life works as a special supporter, Taiyo Life
executives and employees also volunteer. I believe that
this is a good sign of working together, a benefit of Groupbased management.
Kawaguchi I’m not aware of such a successful case of
corporate integration where a solidarity among different
group companies has been nurtured. I am so impressed bywhat you have achieved over the past five years.
Miyato Each company has a good time and a bad time interms of business, and it is hard for every Group company
to achieve a continuous growth. That is why we think itmeaningful for the Group companies to complement eachother to achieve a growth as a whole.
Kawaguchi It seems to me that it would be easier to
get Group-wide synergy and generate profits if all thecompanies develop their own business while sharing thegroup-wide corporate responsibility platform.
Miyato In our case, one of the corporate responsibility
platforms we share is “customers’ perspective.” I feel that
this basic element of corporate responsibility has been
fully shared throughout the Group lately.

I	Quality Improvements by Seeing Things from theCustomer’s Perspective

Kawaguchi Last year you have been taking actions for
ensuring proper insurance claims. What measures have you
taken, and what results have you achieved?
Miyato We reviewed our processes from various angles
to determine what we should do in order to pay insurance
claims and benefits in full and implemented various
measures. What is vital is to take care of the entire process
as a whole starting from signing the contracts (entrance)
to paying claims (exit). For example, simple practices likereading the contract aloud when making a contract, asking
customers whether there’s anything else we can help themwith, or reminding them to check the insurance policy
when we get in touch with customers, etc. turned out to bequite useful for customers to claim even a small amount of
insurance benefits for outpatient care or hospitalization.
Kawaguchi You are saying, then, that you’ve been able
to prevent claim payment problems through proactive
communications with customers at the start and end of theprocess?
Miyato That’s right. In addition, we implemented othermeasures such as digitizing medical certificates to avoid
error of assessments, regular check of the policies bysales representatives, etc. We are also working on making
our insurance products simpler and easier to understand.
For example, Taiyo Life launched a new, fully revamped
insurance product, and Daido Life reduced the number of
special hospitalization options from 38 to 6. We used tothink the more the better, but that made products overly

complicated and resulted in problems in making proper
payments.
Kawaguchi So you reorganized and simplified yourproducts to offer only basic elements. Has that also madeyour operations more cost-efficient?
Miyato Yes, and there have been other benefits too. As aresult of the measures over the past three years, surrender
rate fell, complaints from the customers reduced and wehave heard more positive feedback now.
Kawaguchi And I suppose that makes employees happy
too?
Miyato Yes. It improved motivation among our sales
representatives. They tend to call on customers more
frequently, and some of the customers kindly introduced
us to their acquaintances. Overall, I would say that morale
has improved across the organization.
Kawaguchi So, a crisis turned into an opportunity.
Miyato Yes, we really did cause a lot of troubles to ourcustomers, but this provided us with a valuable opportunity
to reevaluate our claim payment procedures and also hearcustomers’ voices. We’ll continue monitoring the businesspractices of Group’s three life insurance companies. We’llremain vigilant and continue working hard to improve our
products and services from the customers’ perspectives.

L Measures Taken for Proper Payment of Insurance Claims and Benefits
As a result of insurance claim and benefit payment investigations undertaken by the T&D Life Group’s three life insurance companies (Taiyo Life, Daido Life,
T&D Financial Life), it was determined that additional payments should be made to policyholders.
In connection with this problem, the Financial Services Agency (FSA) issued a business improvement order to Daido Life on July 3, 2008.
The T&D Life Group wishes to express its deepest apologies to its customers and other stakeholders for the inconvenience and concern caused by our lapse
in properly paying insurance claims and benefits, the basic and most important job of insurance companies. In response, Daido Life submitted a business
improvement plan to the FSA on August 1, 2008 and is continuing to steadily implement this plan.
Regarding Daido Life’s progress in implementing its business improvement plan and status of improvement, and the steps taken by Taiyo Life and T&D
Financial Life to enhance their payment management systems, the three companies provide regular updates on their progress through their websites. In future
we will make every effort to become an insurance group worthy of the public’s support.

T&D Life Group Corporate Responsibility Report 20098

Management

The T&D Life Group’s Corporate Responsibility
The T&D Life Group aims for sustainable growth together with society through life insurance andother businesses and promotes corporate responsibility to gain the trust of its stakeholders.

The T&D Life Group’s Corporate Responsibility

4 .8

The T&D Life Group’s basic conception of corporate responsibility is to contribute to all people and to society
mainly through the life insurance business in order to be alife insurance group that is trusted by its various stakeholders, with the aim of achieving sustainable growth together
with society.
To further promote corporate responsibility activities, theGroup has set out its basic policies toward corporate responsibility in the T&D Life Group CSR Charter, which isbased on its Corporate Philosophy and Management Vision.
Other basic policies related to corporate responsibility whichhave been laid down are the T&D Life Group Compliance
Code of Conduct (☛ p. 16) and the T&D Life Group Basic
Policy for Strengthening the Compliance Structure. With
regard to activities related to environment protection, theGroup has set out the T&D Life Group Environmental Policy(☛ p. 37). Through all these policies, the Group actively
promotes corporate responsibility.

Promotion Structure for the Group’s Corporate Responsibility

4 .9

At the T&D Life Group, every T&D Holdings department and
all Group companies promote corporate responsibility activities independently as part of their business. The T&D HoldingsGroup Planning Department coordinates group-wide corporate
responsibility activities and reports on the status of activities tomanagement as necessary.
There is also a CSR Promotion Project Team, in which all departments in T&D Holdings participate. Discussions on overall
directions across all departments, ranging from the Group’s core
corporate responsibility policies to specific measures, take place
within the CSR Promotion Project Team, a system designed tosteadily promote the Group’s corporate responsibility activities.
 Group Corporate Responsibility Promotion System

T&D Holdings
Director in charge of the Group Planning Department
CSR Promotion Project Team coordinated by the Group Planning Department

T&D Life Group’s Corporate Philosophy

4 .8With our “Try & Discover” motto for creating value,
we aim to be a group that contributes to all people
and societies.

T&D Life Group’s Management Vision
1. Aim to provide the best products and services to increasecustomer satisfaction.

2. Aim to increase the value of the group by expanding andcreating value in areas where the group can take fulladvantage of its strengths.
3. Broadly fulfill our social responsibilities with high ethicalstandards and strict compliance practices.
4. Aim to be an energetic group whose employees areencouraged to be creative and to take action.

T&D Life Group CSR Charter

4 .8

FS 1

The T&D Life Group is firmly committed to fulfilling the public missionof life insurance and other businesses and to undertaking its corporate social responsibilities based on its management philosophy andby achieving sustainable growth along with society.

1. Offer of Better Products and Services
The T&D Life Group will offer well-suited and high-quality productsthat meet customer needs.

2. Strict Compliance
PThe T&D Life Group will strictly observe laws, regulations and rules,
and act with integrity.
PThe T&D Life Group will maintain and promote fair and free competition.
PThe T&D Life Group will stand firmly against antisocial forces andgroups that may threaten the order or safety of civil society.

3. Respect for Human Rights
PThe T&D Life Group will respect human rights, and make efforts toenlighten all its employees on human rights.
PThe T&D Life Group will respect the individuality of all its employees, ensure a safe and rewarding work environment, and develop
its human resources.
PThe T&D Life Group will respect privacy, and will strictly control andprotect personal information.

4. Communication
The T&D Life Group will widely disclose its management information in
an appropriate and timely manner to the public as well as to its customers and shareholders, and will actively strive to maintain a dialog
with all its stakeholders.

5. Contributions to Regions and Societies
The T&D Life Group will implement social action programs as a good
corporate citizen, and will make contributions to the sound development of regional communities and society.

All departments of T&D Holdings

6. Global Environmental Protection
Taiyo
Life

Daido
Life

T&D
Financial
Life

T&D Asset
Management

Other Group companies

9

T&D Life Group Corporate Responsibility Report 2009

Pet and Family
Small-amount
Short-term
Insurance

The T&D Life Group will carry out its activities with a full awareness of
the importance of environmental concerns, and with sufficient consideration given to global environmental protection.

Management

The Public Mission of the Life Insurance Industry
The life insurance industry has the vital public mission of providing livelihood security to support
individuals’ everyday lives and society.

The Public Mission of the Life Insurance Industry
Management

corporate or private—through investment of customer premiums.
The life insurance industry is playing an increasingly importantrole as part of the social infrastructure intended to support the
public’s everyday life in a society with an aging population andfalling birthrate.
The three life insurance companies in the T&D Life Group willcontinue contributing to people and to society by fulfilling the
public and social responsibilities their business entails.

Economic Aspects

Life insurance is a mutual aid system based on pooling contributions from many people and intended to reduce the financial
burden and worry in case of need due to death, illness or nursing care on the part of customers or their families. It also helps
supplement the public social security system (public pensions,health insurance and so forth).
Meanwhile, life insurance companies support economic activity
by supplying capital needed by various sectors—government,

Taiyo Life Insurance Company
ance claims and benefits. In addition to the perspectivesof safety, profitability and public mindedness, we make aneffort to invest insurance premium collected from our customers in line with the Principles for Responsible Investment(☛ p. 20).
We will continue working hard to earn the trust of customers
and other stakeholders and perform to meet their expectations, and we will also work toward fulfilling our mission of
making a contribution toward building a better society.

Social Aspects

Taiyo Life has launched Hoken Kumikyoku Best, a new
product intended to meet customers’ varied needs evenmore effectively. In-house sales representatives introduce
this new product to customers, mainly the household market, through consultation sales, to provide customers withthe protection-oriented products that meet their needs best.
We are also working to improve the quality of our payment
operations, to bolster the fundamental role of life insurancecompanies, which is the appropriate processing of insur-

Kenji Nakagome
Representative Director
and President

Daido Life Insurance Company
Environment Aspects

Daido Life aims at being a life insurance company providing our customers greater sense of
security and unmatched satisfaction.
Corporate responsibilities of insurance companies, first of all, begin with fulfilling our social
mission and responsibilities through our main
insurance business. By concentrating management resources on our core business of insur-

ance sales to the small to medium enterprisemarket through relationships with partner organizations and promoting quality-oriented management, we will make our utmost efforts to bea life insurance company deserving the trust
and mandate of our customers.

Haruo Kuramochi
Representative Director
and President

T&D Financial Life Insurance Company
T&D Financial Life specializes in life insurance
sales through financial institution agents. Our
mainstay product is annuities, a wealth-building
product for which the market is expected to
grow.
We intend to contribute to our customers inspending comfortable post-retirement life by
maintain a sound financial health, building a sol-id brand in the high growth OTC insurance sales
market, and keeping on providing products andservices that reflect the opinions and requests
of customers and sales representatives. This is
our corporate responsibility I believe.

Muneo Takeuchi
Representative Director
and President
T&D Life Group Corporate Responsibility Report 200910

Management

Business Activities of the Three Life Insurance Companies
2 .2

2 .3

2 .7

FS 6

F S7

Taiyo Life, supporting households through comprehensive livelihood security; Daido Life, helping small to medium enterprises(SMEs), which form the backbone of the Japanese economy; and T&D Financial Life, providing for livelihood in the form ofindividual annuities and other products—each of these companies fulfills its public mission through its own business model.

Taiyo Life promotes the sale of protection-oriented insurance
products covering medical, nursing care, death and others in
the household market through in-house sales representative
channels. The main customer base is homemakers, and womenaccount for 70 percent of new contracts for individual insurance
and individual annuity policies.
Until recently, endowment insurance and other savings-oriented
products, which were well accepted by homemakers, had been
our mainstay offering. Today, however, we recommend mainly
protection-oriented insurance products covering medical andnursing care which meet diversified needs of our customers.
At Taiyo Life, we sell insurance products mainly through inhouse sales representatives who call on customers, directly ask

their needs and suggest most appropriate insurance products
to the customers. Sales representatives also assist customers
in reviewing their insurance programs at key stages of their life
cycle, such as getting marriage, having children, children starting school, or retirement.
Additionally, customer service staff call on customers regularly
to let them know about new products and services, take care ofvarious formalities on their behalf or handle various requests.
This extensive service system allows us to offer the most suitable products and services through detailed, face-to-face consulting sales and be a partner to our customers throughout theirlives.

Daido Life’s core business is insurance sales through relationships with partner organizations in the SME market. We
provide our products through tie-ups with organizations towhich numerous companies, tax accountants and certified
public accountants belong a comprehensive benefits tocover the various risks of member companies and their corporate clients.* In fiscal 2008, over 90 percent of our new
contracts were in the corporate market, and we specializein the SME market.
Sales channel are two folds, in-house sales representatives and the agent organization, mainly consisting of tax
accountants. Individual term life insurance, an insurance
product offering a large protection by a small premium, issuitable for corporate insurance, and Daido Life has thelargest share (21 percent, as of March 31, 2008) in terms ofpolicy amounts in force in this product category.
Daido Life will continue providing the most appropriate
protection for company owners, taking advantage of many
years of experiences in the SME market.

T&D Financial Life specializes in life insurance sales throughfinancial institution agents, a market segment that we expect a significant growth going forward. We put emphasison the following management policies: to strength our compliance program and internal control system to fully protect
customers’ interests; to improve efficiency of sales channel
including financial institution agents to achieve sustainablegrowth; and to increase amount of insurance policies inforce and improve profitability while maintaining a soundfinancial health.
In accordance with these management policies, we will develop new products to meet customer needs and provide
quality service through communicators (call-center agents)

11

T&D Life Group Corporate Responsibility Report 2009

Note: We began handling the Major Comprehensive Protection System for Company Managers offered by the National Federation of Corporate Taxpayers
Associations and the Federation of Tax Payment Associations in 1971, andthe Company Protection System offered by the TKC National Federation in
1976, and selling life insurance products to the member companies of theseorganizations and to the corporate clients of tax accountants and certified
public accountants belong to the member companies.
The TKC National Federation is an organization of professional accountants—
a network of tax accountants and certified public accountants—dedicated toachieving a proper tax payment and perennial prosperity of the client.

who are dealing with inquiries and applications for benefits
from customers.
Always keeping the perspectives of customers in mind, we
will continue working hard to improve customers’ satisfaction.

Supporting Households through Comprehensive Life Security

VOICE �<Voice of an In-house Sales Representative>

Minako Suzuki, Group Assistant Manager
Households

Yokosuka BranchManagement

 Taiyo Life’s Business Model“By suggesting adjustments to our customers’ protection
based on changes in their life cycle or needs, in-house sales(Homemakers and family membersin the household)representatives like me can provide customers with the mostappropriate products and protect them and their families
from all kinds of unforeseen occurrences. The healthier they are, the less peo-

Direct visits

ple see the need for life insurance. It’s also hard for people to get a good idea

Death, medical and nursing care,and other protection-oriented productsthat meet customers’ needsof how much protection they really need.

Focused on major urban areas andmajor regional cities

us are the ones who can provide helpful protection should something happen.

Economic Aspects

Approx. 8,200 in-house sales representatives“Lately, more products are being sold over the Internet or by mail order too, but
I feel that in-house sales representatives who meet customers face-to-face like
“This type of activity, which wins the trust of so many customers, is what makes
my work appealing to me. I intend to continue working enjoyably and with abright smile, so that I can win the trust of many more customers.”(as of March 2009)

Supprting SMEs, Which Form the Backbone of the Japanese Economy

VOICE �<Voice of an In-house Sales Representative>

Mikako Kawaguchi
SMEs

Sales Division 3, Ueno BranchSocial Aspects

 Daido Life’s Business Model“My job is to recommend insurance products to business owners for protecting company and family, particularly in preparation

Contracts withapprox. 380,000 companies

for executive retirement payment, business succession, inheritance, employee fringe benefits. Foremost in my mind is what I
can do to help company owners, and on my regular visits I provide appropriate informa-

Individual term life insurance

tion and make a point of handling matters quickly if the need arises. Business owners

Relationships with partner organizationsin the SME market
Tax accountant/CPA
Corporate organizationsorganizations(NFCTA/TPA, etc.)

are very busy people, and when I drop in I always ask ‘May I have just three minutes of(TKC National Federation/local branches of TPAs)

Approx. 11,500 tax accounting and Certified
Public Accounting firms

short visits to get an accurate idea of what individual business owners want.

Environment Aspects

Approx. 4,100 in-house sales representatives
Approx. 2,600 non-life insurance agencies

your time?’ I try to work on the basis of information gathered cumulatively over these“Insurance is an intangible product, so it’s my job to help customers understand how
important it is for their companies. An owner who seem cold and distant when I firstmeet him gradually warm up; that motivates me to think of how I can help him evenbetter on my next visit.”(as of March 2009)

Providing for Livelihood in the Senior Years through Individual Annuities and Other Products
 T&D Financial Life’s Business Model

VOICE �<Voice of a Wholesaler>

Hiroyuki Hane, Sales Team Leader
East Japan Sales Promotion Office No. 1, Business Promotion Department“Since the deregulation in 2002 individual annuities have beenmarketed through financial institutions, and now one stop ser-

Customers

vice, covering not only annuities but also other insurance products like those providing protection, is available over the counterat financial institutions. I feel that life insurance sales through financial institution agents

Sales through financial institution agents

have reached a significant turning point.
“In my job, I support financial institution agents in their sales efforts; one important role

Sales through banks, securities companies, etc.

that I play is to build a good relationship with agent staff. To accomplish this, I try to

57 banks (including credit unions)
5 securities companies
2 other

help them solve problems in the way most appropriate for respective financial institution agents which operate under unique business conditions, by providing information
not just about our insurance products but also about best practice at other areas orbranches, overall market conditions, etc. I do hope that I would be able to extend better supports to our customers in their wealth building through financial sales agents.”(as of August 31, 2009)

T&D Life Group Corporate Responsibility Report 200912

Management

Corporate Governance

4 .10

The T&D Life Group endeavors to pursue an efficient and transparent business management
structure capable of implementing flexible and unifying Group management.

Basic Concept of Corporate GovernanceCorporate Governance Framework
4 .2

4 .1

Basic concept of corporate governance at the T&D LifeGroup is to pursue an efficient and transparent business
management structure capable of implementing flexible
and unifying Group management.
Based on this concept, T&D Holdings determines theGroup’s business strategies, appropriately allocatesmanagement resources and sets capital policies. In addition, T&D Holdings appropriately identifies the businessrisks of the five direct subsidiaries (Taiyo Life, Daido Life,
T&D Financial Life, T&D Asset Management, and Pet andFamily Small-amount Short-term Insurance), to create asystem for supervising Group management by thorough­ly managing revenues and risks for the entire Group.
Meanwhile, the direct subsidiaries, which have their own
business strategies, develop marketing strategies andcarry out operations playing to their strengths, in orderto maximize their independence and individuality and increase the Group’s corporate value.
In this way, the Group is committed to management
clarifying the respective roles and responsibilities of T&D
Holdings and its direct subsidiaries.

4 .3

4 .5

4 .7

P Board of Directors
The Board of Directors at T&D Holdings makes decisions
on important issues regarding its own operations, and as
the holding company, on business strategies and allocation of management resources with regard to the entire
Group. It also oversees the performance of directors andexecutive officers.
The Board of Directors chooses board members in examination of the qualifications. Director remunerations are
performance linked and determined reflecting the performance of the company and the respective department incharge. Stock option program is not in place.
Chairman of theBoard of Directors

President

Directors

9

External director

1No. of meetings of theBoard of Directors
External director’srole

22 times (Fiscal 2008)
The Board’s external director provides
his specialized knowledge as a lawyer
an d o f f er s co m m en ts r eg ar di ng
deliberation of the agenda asnecessary.

4 .1

 Outline of Corporate Governance Structure

T&D Holdings
Shareholders’ Meeting

Corporate auditors

Board of Directors

Board of Corporate Auditors

Group Compliance Committee

Auditors’ Office

President
Executive Committee

Group Management Committee

Group Risk Control Committee

Group Information Technology and Administration Committee

Group Investment Committee
Group Planning Department

Group Finance & Accounting Department

Public Relations Department

General Affairs Department

Risk Control Department

Internal Auditing Department

Business planning
New business development
Internal control
IRCorporate responsibility

Implementation offinancial strategies
Capital policies
Budget preparation andmanagement

Public relations

General affairsCorporate stock-related
general affairs
Human resources
Secretarial services

Risk management
ComplianceLegal affairs

Internal audit

Deliberation & reporting
Taiyo Life

Daido Life

T&D Financial Life

Guidance & advice

T&D Asset Management

Other Group companies

13

T&D Life Group Corporate Responsibility Report 2009

Pet and Family Small-amount Short-term Insurance

4 .6

P Board of Corporate Auditors

External corporate
auditors
No. of meetings of theBoard of Auditors

14 times (Fiscal 2008)
The Board’s external corporate
auditors supply their specialized
knowledge as financial institution
managers or lawyers and offer
comments regarding deliberation of theagenda as necessary.

P Executive Officer System

T&D Holdings views the shareholders’ meeting as an important opportunity for communicating with shareholders andendeavors to hold accessible and open shareholders’ meetings.
To allow shareholders enough time to study the agenda, wesend a notice of AGM as early as possible and put the notice on our website, in both Japanese and English. Also we
introduce electronic voting through the Internet to improveshareholders’convenience.
At the shareholders meeting, presentation, with a lot ofcharts and illustrations, by President was displayed on alarge screen to help shareholders better understand thecompany’s operations. The Fifth
Annual General Shareholders’Meeting, which took place on June
26, 2009, was attended by many
shareholders and there was an active question and answer session.

Social Aspects

External corporate
auditors’ role

2

4. 4

Economic Aspects

4

Auditors

Shareholders’ Meeting

Management

T&D Holdings is required to have a Board of Corporate Auditors
as a company with internal auditors.
The auditors monitor the operating performance of directors andexecutive officers by means of attending important meetings,
such as Board of Directors’ meeting, Executive Committee,
Group Management Committee, Group Risk Control Committee
and Group Compliance Committee as well as by others means.
The Board of Corporate Auditors receives reports from individual auditors on the important audit issues, and discusses andmakes a decision on the issues.

4 .2

To improve corporate governance, T&D Holdings and its direct subsidiaries have adopted the executive officer system
in order to clearly separate the supervisory and executive

P Executive Committee andGroup Management Committee

4 .2

Executive Committee at T&D Holdings is composed ofEnvironment Aspects

responsibilities.
Fifth Annual
GeneralShareholders’Meeting

President and the executive officers, and primarily discusses important business and management issues related to
T&D Holdings and the Group.
Group Management Committee is consisting of President,
executive officers in charge of the business planning andbusiness management units, and Presidents of the Group’s three life insurance companies, who are also members of
the Group’s Board of Directors. Group Management Committee discusses strategic issues affecting the Group as awhole.

T&D Life Group Corporate Responsibility Report 200914

Management| Corporate GovernanceGroup Internal Audit System

4.6

FS9

Within the T&D Life Group, T&D Holdings and the direct subsidiaries have established independent internal audit units.
The internal audit units perform internal audits of the business execution divisions, examining and assessing the appropriateness and effectiveness of the internal management
system and legal and other compliance, and identifying andraising issues related to internal management, in order to effectively achieve management objectives. The internal audit
units also assess the internal management system and legal
and other compliance and give advice on possible improvements.
By monitoring the performance of internal audits by direct
subsidiaries and other means, T&D Holdings gains an overview of the internal management system of the entire Groupand provides guidance and advice as necessary to strengthen the Group’s internal audit systems.
 Outline of the Group’s Internal Audit System: AuditT&D HoldingsInternal Auditing Department

Business Execution Divisions
Audit & monitoring
Guidance & advice

Taiyo Life

Daido Life

T&D
Financial
Life

T&D
Asset
Management

Each company’s internal audit division

Each company’s business execution division

Other Group companies

15

T&D Life Group Corporate Responsibility Report 2009

Pet and Family
Small-amount
Short-term
Insurance

Internal Control

4 .6

P Establishment of Internal Control System
In light of the social and public nature of the Group’s corelife insurance business, the T&D Life Group believes it isimportant to properly control the execution of its business operations and minimize the management impact of
unforeseeable developments arising out of Group operations, in order to ensure sound and appropriate management and respond to the trust and mandate of society.
Based on this idea, T&D Holdings and the direct subsidiaries have decided, through Board of Directors resolutions of the respective companies, to establish an internal
control system, as stipulated in the Company Law.

P The Internal Control Reporting System
With the implementation of the Financial Instruments
and Exchange Law, an internal control reporting system
was introduced starting in fiscal 2008. This system calls
for setting up the internal control system necessary for
preparing listed companies’ securities reports and otherfinancial reports following appropriate procedures. Company management assesses and reports on the accuracyof these statements, which are then audited for accuracy
by certified public accountants or other outside auditors.
In response, the T&D Life Group set up a Group-wide
evaluation body in preparation for introducing andevaluating an internal control reporting system. Following study of the issue, the Group found that an internal
control system for financial reporting for T&D Holdings
should go into effect from fiscal 2008, the first fiscal yearof implementation under the law. This was also evaluatedas appropriate by the auditors.
The requirement to introduce an internal control reporting system is in response to social demand for accurate financial statements. However, the T&D Life Group
believes that merely passively complying with the law
is insufficient. The Group intends to use the visibility ofoperations resulting from the new reporting system tostandardize operations and improve management transparency. Believing that this will increase corporate value,
the Group is actively working to create and implement
internal controls.

Management

Compliance4 . 11The T&D Life Group views legal and other compliance grounded in strong ethics as a key
management priority. We expect every employee to be highly aware of compliance and takesteps to promote compliance.

Basic Concept of Complianceresponsibilities based on high ethical standards and strict compliance practices as a part of its management vision, and placecompliance as the priority in the corporate management.
Based on the understanding that compliance is indispensable tocarry out corporate responsibility activities, the Group promotes
compliance by ensuring that all the Group executives and em-

Management

The T&D Life Group publicly states that we will fulfill our social

The T&D Life Group Compliance Codeof Conduct
4 .8
FS1This Compliance Code of Conduct serves as a basic policy guideline for all
employees and directors of the T&D Life Group to follow in order to ensurethat their business activities are conducted in a fair and adequate mannerin line with laws, regulations, and rules. The code sets specific principles
and standards to be observed by employees and directors to support themin complying with laws and rules in their daily business operations.
Anyone not following the Compliance Code of Conduct of the T&D LifeGroup may be disciplined for noncompliance with laws or in-house rules.

Code of Conduct.

Economic Aspects

ployees thoroughly understand the T&D Life Group Compliance
1. Strict Compliance with Laws, Regulations, and Rules

Group Compliance Promotion Structure

FS 4

T&D Holdings has established a compliance promotion structure
based on the T&D Life Group Basic Policy for Strengthening theCompliance Structure.
A Group Compliance Committee oversees and improves thethe president and comprised of all executive officers, examines
compliance-related matters and reports findings to the Board of
Directors, presenting a detailed report if necessary, to ensure thorough compliance.
T&D Holdings also has a Risk Control Department, which has overall responsibility for promoting compliance. In coordination with theand other Group members, this department performs regular monitoring and provides these companies with guidance and advice.
The Group’s three life insurance companies and other Group
members also have compliance promotion systems consistingof the compliance committees and the departments in charge ofcompliance.

Regarding the products and services that we provide to customers,
we will not conduct any illegal acts in competing with other companies, including colluding on bidding.

3. Proper Information Disclosure
We will properly disclose and explain information on our products
and services as well as information about the management of theCompany and Group companies.

4. Proper Information Management
We will properly handle customer information that we have obtainedin the course of our business, including their personal information, in
accordance with laws and regulations. We will properly manage information about the Company and Group companies that has notbeen disclosed to the public. We will not allow this information to be
leaked to third parties after leaving the Company or Group companies.

Environment Aspects

compliance units of the Group’s three life insurance companies

2. Maintenance and Promotion of Fair and Free Competition

Social Aspects

Group’s compliance arrangements. This committee, headed by

We will comply with social rules, including such laws as the Insurance Business Law as well as our own in-house rules. Being awareof the background of these norms, we will conduct ourselves in an
honest manner.

5. Prohibition of Insider Trading
We will not use important confidential information that we have obtained in the course of our business for the purpose of making corporate or private investments or for other personal economic activities.

6. Response to Antisocial Powers
We will reject and stringently respond to any antisocial powers andorganizations that threaten the order and safety of a civil society.

7. Limitations on Business Entertainment
We will not give or receive gifts and will neither make nor accept offers of entertainment beyond the extent of social norms.

 Outline of the Group Compliance Promotion Structure

T&D Holdings

8. Distinction between Private and Public Matters
In conducting business, we will draw a clear line between our private
and public lives.

Corporate auditors

Board of Directors

Board of Corporate Auditors

9. Respect for Human Rights

Group Compliance Committee
Risk Control Department
Deliberation & reporting
Taiyo Life

Daido Life

T&D
Financial
Life

Guidance & advice
T&D
Asset
Management

Pet and Family
Small-amount
Short-term
Insurance

Internal audit

We will respect human rights and do our utmost to prevent discrimination and harassment.

Responsibility and Duty of Management
The T&D Life Group management will act while recognizing the observance of the code of conduct as their responsibility and duty andstrive to disseminate the code of conduct among Group companies
and play a leading role in promoting the observance of the code.

Other Group companies
T&D Life Group Corporate Responsibility Report 200916

Management| Compliance

Compliance Program

SO3

FS4

Each T&D Life Group member company takes measuresfor legal and other compliance based on the Group’s basic compliance policies and which are appropriate for therespective companies’ size and characteristics. For example, T&D Holdings and the Group’s three life insurancecompanies and other Group members have created compliance programs as detailed, implementable plans aimed
at having all executives and employees act in compliancewith laws and rules. Compliance training is also carriedout, to reinforce compliance in the course of business.

Whistleblower System
At the T&D Life Group, each of the Group’s three life
insurance companies and other Group members had
operated their own whistleblower systems. In April 2005,
however, the T&D Life Group Helpline was established
for use by all executives and employees in the Group.
Since the Helpline was started it has become better
known within the Group and has contributed to promoting compliance. In some cases, operating the Helpline
has led to improvement in human relations and communications at the workplaces.

Compliance training

Compliance Manual

FS4

The T&D Life Group has prepared separate compliancemanuals for in-house sales representatives, administrative personnel, agents and others respectively, which
work as a daily business operating manual and also as acompliance training manual.

T&D Life Group Helpline poster

P Implementation of the Whistleblower System
As a rule, employees and directors who report information through the T&D Life Group Helpline do not suffer
negative consequences for having done so. To ensure
the effectiveness of the system, the Group has made it
possible to report information to a contracted third-party
company by phone, via a website, and other channels,
and to do so anonymously. The Group will continue its
efforts to promote compliance through this whistleblower
system.

Compliance manualCompliance Card

FS4

To help ensure the strict compliance, employees of theGroup’s three life insurance companies carry with them aCompliance Card summarizing key issues of compliance.

17

T&D Life Group Corporate Responsibility Report 2009

Management

Risk Management
The T&D Life Group identifies and manages various risks associated with the life insurance
business in order to ensure sound and appropriate business management.

Basic Concept to Risk Management

Risk Classification and Responses

4.9

SO2

EC2

FS2

The T&D Life Group defines major management risks
as shown below. Management policies have been established for each of these risks, and efforts are madeto prevent these risks from occurring or to control themwithin certain acceptable levels.
 Risk Classifications
Insurance Underwriting Risk

Legal Risk

Investment Risk

Labor and Personnel Risk

Liquidity Risk

Hazard Risk

Administrative Risk

Rumor Risk

System Risk

Affiliate Risk

 or details on “Risk Classification and Responses,” please refer to the T&D
F
Holdings website.

Crisis Management

Social Aspects

T&D Holdings has established a Group Risk Control Committee under its Executive Committee to control and manage risk
within the Group. The Committee receives regular and ad hoc
reports on risk conditions, assessed according to uniform risk
management indicators, from the Group’s three life insurancecompanies and other Group members and uses this information
to identify and manage the various types of risk faced by Group
companies. The Committee also reports to the Board of Directors on risks and provides guidance and advice to the Group’s three life insurance companies and other Group members asnecessary to enhance risk management for the entire Group.

4 .11

Economic Aspects

Risk Management System

4 .9Management

The T&D Life Group has formulated a Group Risk Management Policy setting forth the Group’s basic approach
to risk management. In light of the social and public nature of the life insurance business, the Group positions
risk management as a key management priority in orderto ensure sound and appropriate management. Under
the comprehensive management of the holding company
T&D Holdings, each Group company takes responsibility
for implementing appropriate risk management based on
the principle of self-responsibility.

4. 11

The T&D Life Group has formulated Rules on the Group’s
Crisis Management, which address basic matters related to
the Group’s response to crisis situations. In the case of major
ity on the lives and safety of executives and employees, and Outline of the Group’s Risk Management Systemtaking into consideration support for affected areas and other

T&D Holdings
Board of Directors

contributions, recognize that continuing or rapidly resuming in-

Corporate auditors

surance claim and benefit payment operations is an important

Board of Corporate Auditorssocial mission and set forth basic policies for readying systems
to make this possible. The Group has also implemented mea-

Group Risk Control Committee

Executive Committee

Environment Aspects

natural disasters and similar events, these rules place prior-sures such as a system for confirming the personal safety of
executives and employees and Group-wide drills for practice

Risk Control Department

Taiyo Life

Guidance & advice

Daido Life

T&D
Asset
Management

Internal audit

Deliberation & reportingin the event of a major earthquake directly hitting Tokyo, to ensure the effectiveness of the Group’s crisis response systems.

T&D
Financial
Life

Pet and Family
Small-amount
Short-term
Insurance

Other Group companies

Crisis response drill
T&D Life Group Corporate Responsibility Report 200918

Management

Toward Openness in Management
The T&D Life Group provides various opportunities to communicate with stakeholders, in orderto reflect their views in the Group’s management.

Management Reflecting Stakeholders’ Voices

External Participation in Management

At the T&D Life Group, proactive communication withstakeholders is set out under “4. Communication” in the T&D
Life Group CSR Charter. (See p. 9, “4. Communication”)
The Group’s three life insurance companies set up
opportunities for direct dialogue with and participation in
management by the policyholders, sales agents and otherstakeholders to reflect their voices in the management of thecompanies.

The Group’s three life insurance companies work toward
appropriate and transparent business management
through the participation of outside experts in some internal
committees dealing with key management issues.

Policyholder Meetings

Taiyo Life

4.16

PR5

FS5

FS16

Taiyo Life holds regular meetings with its policyholders
called “Taiyo Life Fureai Club.” The aim of the meetings is toprovide policyholders with up-to-date information on Taiyo
Life and life insurance in general, as well as to hear from thecustomers their opinions and requests.
In fiscal 2008, the policyholders meetings were held in 46
locations, 72 branches and one sales office throughout thenation. The meetings were attended by 727 people, whowere updated about the company’s business and services.

Business Partner Meeting Daido Life
4.16

PR5

FS5

Daido Life builds partnerships with the organizations of tax
accountants and certified public accountants aiming atoffering life insurance products to the clients of the membersof these organizations. These partner organizations andagents are the key stakeholders of Daido Life. Daido Lifeholds various meetings and gatherings with the partners toreport the latest developments of the business and to hear
their views on Daido Life’s business operations.

Business Partner Meeting

19

T&D Life Group Corporate Responsibility Report 2009

4.16

Payment Assessment Special Committee
Taiyo Life

<External members> Attorneys, consumer issue specialists, others<Main issues considered> Assessment of insurance claims and benefits, payment
administration/Improvement of insurance claim
documents/Appropriate insurance claim payment works

Advisory Council for Insurance

Daido Life

<External members> Attorneys, consumer issue experts<Main issues considered> Re-examination of non-payment claims/Deliberation on
payment complaint responses and dispute settlements/
Improvement of understandability of notices anddocumentation sent to the customers

Payment Supervision Committee
T&D Financial Life

<External members> A ttorneys, experts on consumer issues, media
representatives<Main issues considered> M onitoring appropriateness of insurance claim
payments/Analysis of payment-related complaints andimprovement of the problems

VOICE�

<Comment from an Outside Expert>

A Consistent Response:
Paying Legitimate Claims
Attentively and Quickly,
Rejecting Fraudulent Claims
Yasuo Fukuda, Ph.D.
Professor of Law, Nihon University College of Law
Member of
the Payment Assessment Special Committee“Although the public takes it for granted that insurers will
carefully invest their customers’ premiums and pay out
insurance claims and benefits appropriately, errors arise fromtime to time. There are also, regrettably, a small number ofcustomers who try to defraud the insurance system.
“For insurance companies, avoiding errors and preventing
fraud is an ongoing issue.
“At Taiyo Life, executives and employees act with consistency,
paying legitimate claims attentively and quickly, and rejecting
fraudulent claims. This impressed me, given the fact that somany other insurance companies are nervous when it comesto paying on claims. In relation to appropriate payment, theCommittee had discussions on many issues ranging fromsolicitation to claim payment, but I was also surprised at how
quickly it responds even to negative comments and comes up
with new measures.
“I believe that face-to-face communication with customers andbuilding trust help ensure that insurance claims are paid
appropriately, and I would like to contribute to encouraging
that kind of relationship.”The T&D Life Group pursues proactive communication
activities and works to provide straightforward
information to customers, shareholders and investors,
and all other stakeholders.
To maintain and strengthen the trust of society, T&D
Holdings and the Group’s three life insurance companies
have formulated Disclosure Rules* and work to achieve
information disclosure that results in transparent
management and is timely, fair, accurate and consistentacross the Group in the event of an emergency.
Each Group company issues disclosure materials on its
management policies, business performance and othermatters, and posts product and service information,company news and other information on its website.
T&D Holdings informs its shareholders, numbering
315,728 as of March 31, 2009, of the status of Group
operations and other matters twice a year, in June andDecember, through shareholder news bulletins.

T&D Holdings is included in various SRI (socially responsible
investment) indexes.
SRI is a method of choosing investment targets not simply
based on financial considerations but also on an assessmentof companies’ corporate responsibility performance including
contributions to the global environment and society.
Being a constituent of the recognized SRI indexes represents
a positive external assessment of the T&D Life Group interms of the corporate responsibility. At the same time,such an impartial assessment by outside professionals is avery useful yardstick to review and improve our corporate
responsibility management. We aspire to be a corporategroup trusted by global long-term investors.
■ T&D Holdings is a member of the following SRI Indexes(as of September 30, 2009)

MS-SRI (Morningstar Socially Responsible Investment Index)
MS-SRI is an investment index consisting of 150 companies
selected from 3,600 companies listed in Japanese stock
exchanges, based on the evaluation of five social perspectives,
namely governance/accountability, markets, employment, social
contributions and environmental consciousness, and also taking
into consideration market liquidity.

Social Aspects*T&D Holdings has prepared and makes available a Basic Disclosure Stance,
which is based on its Disclosure Rules.

Economic Aspects

Inclusion in SRI IndexesManagement

Proactive Disclosure

FTSE4Good Global Index

IR Activities

4.16[Explanation of Terms]
SRI：Socially responsible investment. This has taken on the expanded

FTSE KLD Global Sustainability Index

Environment Aspects

T&D Holdings engages in proactive IR activities basedon principles of timeliness, fairness and accuracy, andworks to provide continuous, straightforward informationon the Group’s management and finances. Morespecifically, it holds results briefings for domestic andoverseas investors and results teleconferences, visits key
institutional investors and actively engages in discussions
with securities analysts. It also regularly provides
management with valuable information received frominvestors through IR activities as feedback.

The FTSE4Good Global Index is a global SRI index of companies
meeting environmental, social and other globally recognized
standards. It is compiled by FTSE, a company jointly owned by
the Financial Times and the London Stock Exchange.

The FTSE KLD Global Sustainability Index is a global SRI index developed by KLD Research& Analytics, Inc. composed of companies selected by region and industry based on
environment, social and governance rankings.

Signatory to PRI Taiyo Life

4.9

4.12

FS12

In March 2007, Taiyo Life became the first Japanese life
insurance company to sign the Principles for Responsible
Investment (PRI), a global investor initiative in partnershipwith the UNEP Finance Initiative and the UN Global
Compact. Since then, Taiyo Life has carried out its
asset management activities paying more attention toenvironment, social and governance factors and adheringto the PRI standards when selecting companies to invest
in or make a loan to and exercising the voting right atshareholders’ meetings.

meaning of sustainability in recent years, with the “S” in SRI increasingly
referring to “sustainable.” SRI often now stands for “sustainable andresponsible Investment” or simply “responsible investment.”

T&D Life Group Corporate Responsibility Report 200920

Economic Aspects

Economic Aspects
The T&D Life Group endeavors to achieve transparency and soundness in management andto conduct proactive information disclosure.

Business Overview

EC 1

P Fiscal Year 2008 (Ended March 2009)
New insurance policies for the Group’s three life insurancecompanies combined (individual insurance and individual
annuities) were 5,991 billion yen, down 3.4 percent year on
year, and surrendered and lapsed policies were 5,373.2 billion
yen, up 6.1 percent year on year, and the amount of policies
in force was 58,097.1 billion yen at the fiscal year end, down
2.1 percent year on year.
On a consolidated basis, income from insurance premiums
was 1,654.4 billion yen, up 2.6 percent year on year, andinsurance claims and other payments was 1,814.2 billion yen,up 10.2 percent year on year, resulting in the ordinary loss of
183.8 billion yen, down 339.5 billion yen year on year, and the
net loss of 89 billion yen, down 125.8 billion yen year on year.
Core profit, a performance indicator for the mainstay life
insurance business, turned to a loss of 27 billion yen for theGroup’s three life insurance companies combined, down
186.8 billion from the preceding year.
 For more information about performance results for the latest fiscal year,
please visit the T&D Holdings website (http://td-holdings.co.jp/e/).

L Policy Amount in Force(Three life insurance companies combined)(Trillion(Trillion yen)yen) 59.8

59.8

60
60

40
40

58.0
58.0

58
58

(Consolidated)(Billion(Billion yen)yen) 38.7
38.7

59.3
59.3

59
59

L Net Income (Loss)

30
30
20
20

57
57

10
10

56
56

0
0

0
0

As of
of Mar.
Mar. AsAs ofof Mar.
Mar. 31,
31, AsAs ofof Mar.
Mar. 31,
31,
As
2008
2009
31, 2007
2007
2008
2009
31,

L Income from Insurance Premiums(Consolidated)(Billion(Billion yen)
yen)

900
1,,9001
1800
1,,800L Core Profit (Loss)(Three life insurance companies combined)(Billion(Billion yen)yen)173.3

173.3

159.7
159.7

1,613.1
1,613.1

1
600
1,,6001,654.4
1,654.4

EEV

Increase or(decrease)

1,621.6

866.5(755.1)

Adjusted net worth

1,057.1

535.3(521.8)

Value of in-force
business

564.4

331.1

(233.3)

Value of new business

62

28.5

(33.4)

 Please visit the T&D Holdings website (http://td-holdings.co.jp/e/) for moredetails.

P Basic Profit Distribution Policy
T&D Holdings has a policy ofmaintaining the soundness of
its own operations and those of
the Group companies, securingretained earnings required by theGroup, enhancing shareholder
value, and continuing a stableprofit distribution. Annual cash
dividend for fiscal 2008 was set
at 45 yen per share, lower thanthe previous year.

L Annual Cash
Dividend per Share
(Yen)
80

65

65

60

45
40

20

0 Year ended Year ended Year ended
Mar. 2007 Mar. 2008 Mar. 2009

P Solvency Margin Ratio

The Group’s solvency margin ratio,* which is one of
the indicators regulatory authorities use to gauge thesoundness of an insurance company, remains at an
adequate level.
 Solvency Margin Ratio

60
60

(27)
(27)

0
0
Year
Year ended
endedYear ended
ended Year
Mar.
Mar. 20092009
Mar. 2008
2008 Mar.

(Unit: %)As of Mar. 31, As of Mar. 31, As of Mar. 31,
2007
2008
2009

Year
Year ended
ended
Mar.
Mar. 2007
2007

Year
Year ended
endedYear ended
ended Year
Mar.
Mar. 20092009
Mar. 2008
2008 Mar.

P Corporate Value (EEV)
The T&D Life Group had disclosed its embedded value (EV),one of the indicators for assessing the corporate value ofa life insurance company, and since fiscal 2006, the Group21

As of March 31, As of March 31,
2008
2009

90
90

30
30

500
1,,5001
YearYear ended
ended
Mar.
Mar. 2007
2007

 Corporate Value of the T&D Life Group (Unit: billion yen)

150
150
120
120

1
700
1,,700

0
0

(89)
(89)
Year ended
ended Year
Year ended
ended Year
Year ended
ended
Year
Mar. 2007
2007 Mar.
Mar. 2008
2008 Mar.
Mar. 2009
2009
Mar.

180
180

1,811.5
1,811.5

36.7
36.7

switched to EEV (European Embedded Value) based on
the EEV Principles, which get popular among European
insurance companies.
In the calculation of EEV, we use a market risk-free rate fordiscount rates and investment yields, which solves some ofthe problems inherent in the traditional EV approach, andthereby improved the quality of disclosed information.

T&D Life Group Corporate Responsibility Report 2009

Taiyo Life

1,100.4

1,000.6

866.4

Daido Life

1,320.6

1,096.3

823.4

T&D Financial Life

1,189.7

912.4

832.0

Pet and Family Small-amount Shortterm Insurance

19,841.6

17,561.0

4,212.7*Solvency margin ratio is an indicator used by regulatory authorities tojudge whether an insurance company has a sufficient financial capability
to pay the insurance claims in case of unforeseeable risks. A solvency
margin ratio of 200 percent and above represents that the insurancecompany meets a criteria for financial soundness.

P Pet Insurance Business

New Business Strategies
P Asset Management Business(As of October 15, 2009)

Taiyo Life

Daido Life

T&D Financial Life

Standard & Poor’s (S&P)

A-

A-

Japan Credit Rating Agency (JCR)

A+

AA-

A

A+

A+

A+

Rating and Investment Information (R&I)

Moody’s Investors Service

P Standard & Poor’s (S&P)<Insurer Financial Strength Ratings>
Rating A: Has strong ability to honor commitments
on obligations but is somewhat more likely to beaffected by adverse business conditions thaninsurers with higher ratings.

P Japan Credit Rating Agency (JCR)<Insurance Claims Payment Ability Ratings>
Rating AA: Very strong ability to honor financial
commitments on obligations.
Rating A: Strong ability to honor financial
commitments on obligations.

P Rating and Investment Information (R&I)<Insurance Claims Payment Ability Ratings>
Rating A: Strong ability to pay insurance claims andexcellence in some evaluation factors.

P Fitch Ratings

A

Fitch Ratings

Environment Aspects Definition of Ratings

The three life insurance companies in the T&D Life Group have obtained credit
ratings regarding solvency for paying benefits.

Rating Agency

Social Aspects

Credit Ratings

Economic Aspects

T&D Holdings made T&D Asset Management, which
had been formerly an affiliate company owned by Taiyo
Life and Daido Life, a direct subsidiary of T&D Holdings.
This is based on the company’s long-term management
strategy of positioning the asset management businessas a core business domain along with the life insurance
business.
T&D Asset Management is aiming at building the mosttrusted asset management firm contributing to the society
in the long-run, in the two market segments, institutional
investors including pension funds and investment trusts
for individual investors. The company intends to offer
creative and flexible investment ideas while maintaining
a consistent investment philosophy and approaches.
Taking a few examples, T&D Asset Management offers
such innovative financial products as the investment trust
focusing on the companies conducting the environmental
business in the rapidly growing Chinese market and theinvestment trust run by a fully computerized investment
program (robot).

Management

Insurance market for pet animals is likely to grow further on
the back of the changing social environments, such as moreapartments allowing the residents live with pets, more pet owners
giving medical cares to pets as a family member, etc.
T&D Holdings made the Pet and Family Small-amount Short-term
Insurance a subsidiary in January 2007 and is aiming at expanding
its business in the pet insurance market.
To meet the pet owners’ wish to cherish bonding between themand companion animals, the Pet and Family Small-amount Shortterm Insurance aims at contributing to the society by providing thebest pet insurance product and service in support of healthy andhappy living with pets.
In October 2008, a new simpler pet insurance product, called“Genki Number One,” was launched.
In November 2008, Pet and Family
Small-amount Short-term Insurance
became the first insurer in this market
segment offering the products throughthe Internet. In August 2009, somesteps were taken to improve customer
satisfaction by relaxing the age
requirement for pre-enrollment physicalPet insurance pamphlet
examination and for online contracts.

A2

Disclaimer: The above ratings represent the opinions of credit rating agencies and do not guarantee any actual
payment of insurance claims.
These ratings are based on numerical figures and other data as of a certain date and may change in the future.
The rating agencies listed above are designated as such by Japan’s Cabinet Office regulations, and the definition of
ratings is made public by each rating agency. The plus (+) and minus (-) signs or figures (2), etc. following the ratingsshow relative standing within the major rating categories.
All ratings were obtained through formal requests to the rating agencies by the Group’s three life insurancecompanies.

<Insurer Financial Strength Ratings>
Rating A: High level of payment ability. Unlikely tosuspend or stop payments and has strong ability tofulfill its obligations to insurance policy holders andother contract obligations without delay. However,faces a stronger possibility of being affected bychanges in business or economic conditions thaninsurers with higher ratings.

P Moody’s Investors Service<Insurer Financial Ratings>
Rating A: Rating for insurance companies withfavorable claim payment ability. However, somefactors may affect the company’s ability to pay
claims at some point in the future.

T&D Life Group Corporate Responsibility Report 200922

Social Aspects

Together with Our Customers

PR1

With “taking the customers’ perspective” always in mind, each T&D Life Group company makes
the utmost efforts to improve the quality of their products and services, by creating a system forgathering customers’ feedback and making use of their unique business model.

Obtaining Feedback through Daily Business Activities

Reflecting Customer Feedback in Operations

In the course of daily business activities, the Group’s
three life insurance companies receive feedback fromtheir customers.
They set up as many points of contact with customers
such as in-house sales representatives, agents, callcenters, the Internet and so forth to continually boost thesystem for gathering customer feedback.
The companies also conduct regular as well as nonregular surveys to straightforwardly ask customers about
their satisfaction level.

The Group’s three life insurance companies have set up a
department and a committee consisting of external members incharge of customer satisfaction management. They are working
on developing a total system ensuring customer satisfaction at all
the stages of interaction with customers, from contract signing to
payment of claims and benefits, based upon the clearly policy forcustomer satisfaction and specific guidelines for handling of customer
complaints. All the feedback from the customers are integrated into acentralized database, and shared by the relevant units concerned forthe development and improvement of quality of products and services
as well as for the improvement of business practices.
4 . 17

 Examples of Improvements Based on Customer Feedback

23

F S5

Customer’s voice

How we responded

P Customer counters and ATMs close at
3 p.m. I’m working and can’t get there
in time.

P As of the end of September 2009, business hours at 85 branches throughout thecountry, mainly those with ATMs, have been extended from 3 p.m. to 4 p.m. The
company issues a membership card called “Himawari Card” which allows customers to make transactions at every ATM of affiliated institutions installed
nationwide. Customer service personnel take care of paperwork on behalf of customers and also listen to their comments and requests while making regular calls.

P Policy provisions are written in small
type and are very hard to read.

P Policy leaflet containing policy provisions for a new insurance product, Hoken
Kumikyoku Best, has been enlarged to an A4 page, and is now available on a
CD-ROM. Customers can enlarge the policy documents to a readable size and turn
pages at the click of a mouse. And also it has a search function where customers
can look up the meaning of terms in the policy leaflet and policy provisions.

P I can’t see which items of the policy provisions are written where. The document
is also hard to read because the type isvery small, the sentences are long andthere is a lot of bracketed information.

P Index has been added to the front cover so that customers can easily findnecessary information. Table of contents classified by category is now presented in the form of FAQ to enhance readability. Size of the policy document was expanded to an A4 page and the document was redesigned, forinstance writing the titles larger and putting the supplementary information
together in an explanatory note section, to make it easier to read.

P I was told that my insurance policy covers medical operation benefits, but thatis not shown on my insurance policy
certificate.

P In the past, insurance policy certificates stipulated only the type of supplemental insurances (e.g. “hospitalization benefits,” “natural disaster benefits”). Now
the insurance policy certificates, with some exceptions, show the details of thepolicy and a chart of how the policy works so that policyholders can easily identify if they are eligible for benefits and the amount of benefits to be paid out.

P I received an account statement, but I was
not sure what it was because it did notshow the name of the insurance agent that
I made the contract with or the name of
the insurance product. Such an insufficientdescription is not helpful for customers.

P Starting from the fiscal 2007, we have described the name of soliciting
agents such as banks as well as the name of products on the covering letter accompanying the statement.

P I transferred my deposit by means ofswitching through the Internet service but
this deal was not reflected on the account
immediately after the deal.

P We added a new Internet service function which enables customers to
confirm the amount and proportion of the deposit to be transferred on areal time basis.

T&D Life Group Corporate Responsibility Report 2009

Measures Taken by Taiyo Life

PR5

Taiyo Life is promoting business practice improvement
based on the feedback from customers. In March
2008, as a part of such an initiative, Taiyo Life obtained
ISO 10002, a third-party certification for Quality
management—Customer satisfaction—Guideline forcomplaints handling in organizations, to prompt ourbusiness improvement activities widespread and settle
within the organization. Taiyo Life was the first company
in Japan to obtain this certification on a companywide basis, to the best of our knowledge. Taiyo Life has
undergone regular third-party inspections since obtaining
the certification and, in March 2009, was evaluated thatit had improved business practices appropriately from
customer’s perspective.

 Breakdown of Customer Feedback Received(Units: no. of feedback; proportion: %)FY2007

FY2008

No. received%

No. received%

Complaint

21,41744.6

16,207

31.6

Comment, request &suggestion

3,714

7.7

5,465

10.6

Appreciation & praise

22,904

47.7

29,676

57.8

Total

48,035100.0

51,348100.0

P “Q-up Campaign”—Company-wide Business
Process Improvement Promotion Campaign

2. 10

In April 2008, Taiyo Life developed T-SMAP, a sales
support system to make it possible to offer high-quality
consulting sales from the customer’s perspective.
This T-SMAP is a unique business model incorporates
three elements: Customer Relationship Management(CRM), to help improving individual customer’ssatisfaction; Sales Force Automation (SFA), to support
optimal activities from planning to execution; andKnowledge Management (KM), to share the successful
experiences and good sales talks within the company.
This system won the CRM Best Practice Award 2008
by CRM Association Japan, as an innovative businessmodel to change the basic concept of life insurance sales
activities from placing sales increase above anything else
to customer’s perspective first.

Environment Aspects

To enhance customer satisfaction by rectifying problems
in our business practices and offering better service assuggested in the complaints, comments and requests
from our customers, Taiyo Life regularly carries out acompany-wide initiative to promote improvement of
entire business practices, called “Q-up Campaign.”
During the 2008 campaign, 145 branches, three sales
offices and 27 departments published specific actions totake as a commitment and tried hard to implement them.
As a result of the actions taken by the branches, sales
offices and departments, we saw a marked improvementin customer feedback, with more praise (up 29.6 percent
year on year) and fewer complaints (down by 24.3
percent).

P T-SMAP Won CRM Best Practice Award

Social Aspects

Appreciation & praise: Number of cases where customers expressed satisfaction,
in a verbal or written form, regarding the words, actions, business practices, etc. of
our staff.
Comment, request & suggestion: Number of cases where customers saw a room
for improving our business practices.
Complaint: Number of cases where customers expressed dissatisfaction with us.

Economic Aspects

P Obtaining ISO10002 Certification

We register all the valuable customer feedback, whether acomment, request or complaint, in our Customer Feedback
Information System, and then classify, quantify, analyze
and utilize them for improving our business practices.

Management

P Using Customer Feedback Effectively

 Framework for Improvements Based on Customer Feedback
Response to customer

Customer Service Center (Call center)
Customer surveys
Face-to-face meeting
Customer visit to office
Policyholder Meetings
WebsiteCustomer Feedback
Information System
Aggregation and central
Sharing ofmanagement of information information
Measures to prevent recurrence,
improve business practices, etc.

Analysis and study ofDepartments in Charge customer feedback
Customer
Consultation Center
Branch offices
Relateddepartments

Reports
Customer Feedback
Council

Preparation of
measures to prevent recurrence,
improve business processes, etc.
Reports

Reports
Instructions

Customer Feedback
Implementation
Committee
Opinions,
Instructions

Board of Directors,
Executive Committee

Customerrecommendations

T&D Life Group Corporate Responsibility Report 200924

Social Aspects| Together with Our Customers

Measures Taken by Daido LifePR5P Response to Complaints

P Conducting Customer Survey

Daido Life endeavors to respond to the complaints andcomments of customers quickly and with integrity tillcustomers are fully satisfied. We take our customers’
complaints seriously and are working to improvebusiness practices from the viewpoint of customers.

Daido Life conducts an annual customer survey by mail to(Units: no. of feedback; proportion: %)FY2007
No. received

Purchase life
insurance policy

FY2008%The company also conducts a corporate customer surveyof small to medium enterprise owners concerning theirsatisfaction about products, after-sales service and so forth.
Another survey is carried out for the customers who applied Analysis of Customer Complaints
Description

hear customer appraisal, comments and requests.

No. received

for benefit claims or surrendered insurance policy regarding
expeditious processing of procedures and understandability%of application documents.
 Results of Corporate Customer Satisfaction Survey

1,288

15.7

1,670

16.7

Payment of premiums

910

11.1

1,577

15.8

Procedures after
making the contract

2,633

32.1

3,268

32.7

Payment of claims andbenefits

2,173

26.5

2,181

21.8

Other

1,191

14.5

1,306

13.1

Total complaints

8,195

100.0

10,002100.0

Note: Daido Life defines customers’ expressions of dissatisfaction regarding thecompany’s operations as “complaints.”

Dissatisfied 0.2%
Somewhatdissatisfied

0.2%

Quite dissatisfied

0.0%

Very satisfied

13.5%

Can’t sayeither way

9.8%

Fairlysatisfied

31.1%

Satisfied

44.5%

P Reflecting Customer Feedback in Operations
At any time, any client liaison and any operations fromsolicitation, after-sales service to payment of claims andbenefits, Daido Life endeavors
to provide a high-quality service
that our customers expect.
Daido Life is making greater
efforts to reflect customer
feedback in their operations
under the theme of quickness,understandability and simplicity.

Outline of Survey
Survey date: November 2008
Respondents: Randomly selected
corporate clients
No. of surveys sent: 2,000
Valid responses received: 562
No. of questions: 40 questions in
13 categories

A total of 89.1%
respondents indicatedthat they were “verysatisfied,” “satisfied” or“fairly satisfied.”

P Company-wide Initiatives Led by a Dedicated CS Unit
All the customer feedback from the nation are gathered by Customer
Satisfaction Promotion Department, a business unit dedicated topromoting better customer satisfaction, and then analyzed to identify
problems. Once problems are identified, relevant corporate departmentsin charge draw up necessary action plans to solve the problems andimplement them after getting approval from the Executive Committee.
Improvement measures so implemented are shared with all theemployees through the activities of CS Session* and implemented
company-wide in the course of regular business activities.

Poster for promoting customer service improvement*CS Session: A company wide initiative led by branch general managers to discussand implement measures to improve daily business activities and to prevent a
recurrence of problems.

Customer

Branch offices
Feedback

Call center
Internet
Sales representative
Customer surveys
Informal meeting with customer

25

T&D Life Group Corporate Responsibility Report 2009

Gathering andanalyzing ofcustomer feedback

Executive Committee
Study and
implementationof improvement
measures
CS Promotion
Corporate departments
Department
in charge

Improving customer
service quality
through CS Session

Improved products
and services

Enhancingcustomer satisfaction

 System for Reflecting Customer Feedback in Operations

Measures Taken by T&D Financial Life

PR5

T&D Financial Life conducts an annual customer survey toactively reflect customer feedback in its operations.
All the executives and employees of T&D Financial Life promise
to conduct business to enhance customer satisfaction on thebasis of the survey, and act in the best interest of the customers.

 Analysis of Customer Complaints

 Summery of Survey Findings

Economic Aspects

P Customer Satisfaction Survey

T&D Financial Life takes all customer feedback such ascomplaints, comments, requests received through its
Customer Service Center seriously and endeavors to
improve the quality of customer service and businesspractices by making necessary operational improvements.

Management

P Responding Rapidly to Customer Feedback(Unit: No. of complaints)

Hard tounderstandQ. How did you feel

No. of complaints

Item

FY2008New contracts

170

143

Payment of premiums, etc.

52

33

Procedures after making thecontract

335

168

Insurance claims and benefits

189

72

Others

79

64

Total

825

480

about the form you
filled out for yourtransaction?

4.7%

Average Quite understandable

46.5%

48.8%

Q. If you think of a lump-sum variable annuity offeredby life insurance companies, what factor(s) would
you consider important? (Answer all that apply)0

Note: “Complaints” refers to customers’ dissatisfaction about products or services,and expressions of dissatisfaction.

10

20

30

40

Safety70 (%)

7.2%

Investment term

16.2%

Death benefit

8.8%

Expenses

4.3%

Others2.2%

Environment Aspects

T&D Financial Life discloses the inquiries, complaints,
comments and requests received from the customers aswell as the responses from the company on the website
in the form of Frequently Asked Questions to facilitate
convenience for the customers.

60

60.6%

Investment
performance

P Customer Feedback and Company Responses
on Website as “FAQ”

50

Social Aspects

FY2007

Outline of Survey
Methodology: Survey was sent, together with other documents, to the customers
who purchased insurance through a financial institution agent and requested tosafeguard their policy.
Survey period: November 4, 2008 to March 31, 2009 (Responses received up to
April 30, 2009 were processed)
No. of surveys sent: 1,427 Valid responses: 543 Retrieval rate: 38.1%
This survey asked other questions as well concerning supports by communicators
at Customer Service Center, handling of a series of procedures by our staff up,
ways of informing customers about products and so forth. Results of the survey infull are available on our website.

AnswerReport,instruction

Customer
Consultation Division

CustomerComplaint,
request for
advice, inquiry

Customer Service
Center (Call center) System for Responding Quickly to Customer Feedback
Request for advice,inquiry

Inquiry

Compliance Department

External legal advisor

Financial
institution
agent

Confirmation of nature of complaint, coordinated efforts to resolve complaint

ReportComplaint Recurrence
Prevention Committee

Instruction forimprovement

Internal
department(s)concerned

T&D Life Group Corporate Responsibility Report 200926

Social Aspects| Together with Our Customers

Offering Insurance Products to Broader Public

F S 15

Life insurance is a mutual aid system in which costs paid to insured
deaths, hospitalizations, nursing care, etc. are covered by premiums
statistically calculated by mortality and accident rates according to thelaw of large numbers. For this reason, life insurance companies areunable to accept every person to purchase policies regardless of theircircumstances. To maintain the viability of the life insurance system, some

Setting Solicitation Policies

PR6

F S 15The Group’s three life insurance companies and other Group members
have established Solicitation Policies as the ground rules to comply
with. Under these policies, the companies endeavor to develop andoffer the appropriate products which meet the customers’ desires andcircumstances, and ensure that customers thoroughly understand theinsurance protections when they purchase insurance policy.

people whose expected mortality rates or insurance accident rates exceed
certain limits are unfortunately either rejected or accepted only undercertain conditions such as application of additional premiums and so on.
The Group’s three life insurance companies and other Group members
respect customers’ human rights and offer many unique insurance
products which meet a wide variety of customer needs, health conditions,gender, enrollment age and other specific circumstances.

Products Meeting Social Needs

FS7

The T&D Life Group offer high added-value products in
response to the issues and needs occasioned by thechanging social structure such as a rapid population
aging and a low birthrate.
 Examples of Unique Insurance Products
P Insurance offering protection against a wide range of medical or nursing
care needs and allowing renewal or conversion to a whole life policy
even if the policyholder develops an illness during the term of the policy.
OHoken Kumikyoku Best Taiyo LifeP Medical insurance for people with past hospitalization or surgery history,or who are currently under medical treatment
ONonparticipating nonselective medical insurance Taiyo-seimei no
Yasashii Hoken
ONonparticipating semi-selective medical insurance Kisei Kanwa
Taiyo LifeP Expanded-coverage term insurance providing benefits not only in case ofdeath but also in need of extensive nursing care
ONonparticipating age-specific maturity term life insurance (forlivelihood protection) Daido LifeP Lump-sum individual annuity with one-year grace period providing funds
for post-retirement life and inheritance
ONonparticipating lump-sum individual annuity Daido LifeP Fixed amount individual annuity offering safety with yield and flexibility
ONonparticipating individual annuity (stock market index linked/typeI) Happy Bell T&D Financial Life
P Insurance offering protection for illness or injury of pet animals
OPet medical insurance Genki Number One

Solicitation Policies (Taiyo Life)The following are the Taiyo Life’s basic solicitation policies
for offering financial products including life insurances
to customers. We always endeavor to develop andsolicit right products in an appropriate manner in due
consideration of customers’ desires, circumstancesand privacy, and provide suitable services throughconsultation sales activities.
PWe will comply with the applicable laws, rules and regulations insolicitation activities.
PWe will endeavor to carry out appropriate solicitation activities inconsideration of the customer’s circumstances.
PWe will give due consideration to as the time and the place forsolicitation.
PWe will explain the important issues appropriately.
PWe will make efforts to enhance employee education and training
programs.
PWe will safeguard customer information strictly in confidence.
PWe will make continuous efforts to establish an internal structure
ensuring appropriate solicitation activities.

Protection of Personal Information

The Group’s three life insurance companies haveformulated Personal Information Protection Declarations(Privacy Policies) and publicly announced them throughon their websites. In addition, T&D Information Systems,
an information system support company in the T&D LifeGroup, handle various data, including personal information,
appropriately and places strict controls on them.
In May 2005, T&D Information Systems obtained a privacy
mark certification, which is awarded to companies thatare good at personal information protection. The company
obtained the ISO27001 information security management
system certification in March 2007.

Pet and Family Small-amount Short-term Insurance
The insurance products on this page are shown for the specific purposeof explaining the T&D Life Group’s corporate responsibility activities, andare not intended for solicitation. Please see the product brochures fordetails about these products.

Privacy Mark27

T&D Life Group Corporate Responsibility Report 2009

P R8

Services at the Time of Making a Contract

PR6

explanations through face-to-face sales contacts, which is one of ouradvantages.
As an additional measure at the time of making contracts, a brief document
is handed over to the customer to ensure that the customer fully understands
the insurance product and that the product meets the customer’s needs.

Recommendation Stage

Clearly worded“Product Pamphlet”“Product Summary Sheet”(agreement summary) tailored to
the life plan of each individual customer“Policy Leaflet and Policy Provisions”
containing an explanation of insurance
policy and a discussion of rights“Intent Confirmation”
as a final measure for ensuring that thecustomer’s needs are met by the subject
insurance product<Voice of an In-house
Sales Representative>

Developing Closer Links with
Customers throughAfter-sales Service
Masumi Ichinose
Sales Division 5, Tokyo Branch, Daido Life“To ensure the customer’s satisfaction
over the long term and identify the product that best suits
the respective customers, I think it’s important for us to callon the customers as often as the customer’s time permits.
Different customers have different needs, of course, andeven the needs of the same customer may differ as theircircumstances change and as time passes by. It gives me agreat satisfaction when I can take a cue from a chat withcustomers about what is needed and can propose a good
product meeting their needs.
“To me, working in the insurance industry isn’t just about
getting contracts. Great charm of this job is to build a
relationship of trust with the customers through our efforts tobe of service to the customers. There’s so much to learn
from the customers who are business owners with a lot ofexperience in life and everything I learn from them is very
useful for my own work.
“I want to continue supporting the business owners of small
to medium enterprises, the backbone of the Japanese
economy, through the activities of Daido Life.”

Environment Aspects

Agreement Signing Stagecalling the customer’s attention to particularly important points

VOICE �Social Aspects“Notifications of Important Matters”(information customers should be aware of)

The Group’s three life insurance companies havedeveloped various systems to ensure better after-sales
service. At the call center, professionally trained staffs
respond to the telephone inquiries and applications forbenefits from customers attentively and swiftly. All theemployees including branch office counter staff, in-housesales representatives and customer service personnel also
try their best to communicate with customers sincerely.

Economic Aspects

 Major Documents

Management

The Group’s three life insurance companies provide customers with clear

Working toward Better After-sales Service

After-sales Services
The Group’s three life insurance companies work toensure customer satisfaction by providing various kindsof information after contracts have been made. They also
work to enhance their services so that the policyholders
can apply for insurance claims and benefits more easily.

P Customer Service Staff: After-sales Service Experts
At Taiyo Life, not only in-house sales representatives but also
customer service staff call on customers regularly after a contract has
been made. The company has approximately 900 customer service
staff who arrange various
formalities on behalf of Examples of Services to Facilitate Application for Claims and Benefits

customers, such as change ofregistered address, insurance

P Distribution of pamphlets describing the procedures with
examples for applying insurance claims and payments

claims. They also offer other

P Regular notification of contract details

as introducing new products

P Reimbursement of the cost to obtain medical certificates
if a claim requiring a medical certificate is rejected.

services to customers, suchand services, hearing
customers’ requests, etc.

Customer service staff setting off ona regular visit to a customer

T&D Life Group Corporate Responsibility Report 200928

Social Aspects| Together with Our Customers

Development of Service Staff Skill L A11

FS4

agents, using its own computer-based training materials and

The Group’s three life insurance companies pay close
attention to improving the skills of their service staff, whichis essential for improving customer satisfaction.
The companies actively provide education and training on
fundamental and specialized knowledge of life insurance
and on compliance to enable service staff to meetcustomers’ varied needs.
Further, the three life insurance companies, which areoperating based on their different business models,
have different types of staff on hand to provide themost appropriate customer service—in-house sales
representatives, customer service personnel, sales agentsand wholesalers. Each company develops a specifictraining program for a diversified scope of staff and strives
to provide them with the best learning opportunities.

manuals as a part of soliciting agent training program, which

P Initiatives to Strengthen Financial Planning Abilities

P Wholesaler Support for Agents

Taiyo LifeTo be a life planning advisor truly valuable for the customers,
an ability to offer a custom-made life plan is essential.
This requires not only knowledge about life insurance but
also broader knowledge about financial products, stocks,
insurance, real estate, taxes, pensions, loans and so forth arenecessary. As a part of the training program for new sales
representatives, Taiyo Life provides an educational curriculumon financial planning. Going forward, all the company
employees would learn to get financial planner’s qualification.
 Education Program for Professional QualificationsFirst year

Second year

Third year

Specialist course

Application course

University course(Life Consultant)(Senior Life Consultant)(Total Life Consultant)Compulsory: 3rd Grade Certified Financial
Planning Skilled Worker
Qualification exam
for variableinsurance sales

AFP training course, 2nd
Self-education: Grade Certified Financial
Planning Skilled Worker

Qualification exam for non-life insurance products

P Soliciting Agent Training Program

Daido LifeAt Daido Life, staff at the Head Office, branches anddepartments in charge work together to provide a high-quality
agent support to enable them to meet customers’varied needs.

29

The company also offers hands-on training program to the

T&D Life Group Corporate Responsibility Report 2009is intended to ensure thorough compliance by agents, help
agents learn about the insurance business and enhance theirPost-registration training
Continuous educationand training

Examination on
general courses

Pre-registration
training

Briefing session oncommissioned businessability to propose products.

Compliancetraining
Business know-how
training
Practical training on
product proposal

Group training, individual agent training
and Web training

T&D Financial Life

T&D Financial Life offers a unique support program tofinancial institution agents through corporate staff incharge of agents, called wholesalers, to enable them tomake the best suggestions possible to their customers.

VOICE �<Voice of a Wholesaler>

Aiming at Accurate Communication
Yuko Kuwano, Chief
East Japan Promotion Office No.1
Business Promotion Department
T&D Financial Life“My job is to develop training materials forfinancial institutions acting as sales agents, particularly stressingon accurate communication of information with the customers
who make a contract through financial institution agents. Also as
a wholesaler, I continuously improve training materials, taking
into account the feedback from front-line sales people.
“My previous responsibility was to check the contents of
insurance policies, and sometimes I encountered the situations
where customers did not correctly understand the terms of theirpolicy. From this experience, I believe that the sales agents must
understand the products correctly first of all, and that the agents
must then explain customers about insurance products
accurately and clearly. So I feel comfortable with my job to
produce training materials to this end, and to support sales
activities as a wholesaler.
“In June 2009, we produced video training materials covering
everything from basic knowledge of life insurance to professionalsales talk for the first time. Making of the video was doneinternally: the employees handled everything from writing thescript, shooting scenes and role-play appearance for instance asa corporate employee nearing retirement age, a bank counterclerk, etc. We’ll continue working together to elaborate the waysof accurate communication of information to the customers.”

Other Services

Daido Life

Daido Life provides various services to corporate policyholders
to support their business management and health enhancement.
 Examples of Services
P Providing reports on management strategies, industry
trends and other useful business information
P Providing standard form of company regulations
P Complimentary assessment of company rules
P Information on public subsidies & supports

T&D Club Off provides a range of services for healthpromotion and leisure to the policyholders of three life
insurance companies and Pet and Family Small-amount
Short-term Insurance in the Group.

P Health counseling and second-opinion service

asset management, pensions, child-care, dietary life, etc.)

P Services supporting daily living (extensive menu of helpful
services)

FS14

The T&D Life Group provides all kinds of informationon their websites. For better customer convenience,
they also offer online services for payment procedures,inquiries and changing registered information. At Pet andFamily Small-amount Short-term Insurance, customers
can buy pet insurance on the company’s website.

Social Aspects

P Accommodations in JapanP Online reservations for hotels overseas
P Business hotel desk P Golf desk P Leisure facilities
P Complimentary telephone advisory service (on taxation,

P Services through the Internet

Economic Aspects

P T&D Club Off

 Examples of Services

Management

In addition to the face-to-face customer services offeredat branch offices, Head Office counters, etc., the Group’s
three life insurance companies offer various services via
call centers and the Internet to enhance the customers’
convenience.
The companies also offer a variety of services in responseto the requests from customers.

P Useful Services for SMEs

 Examples of Services
Taiyo Life

Environment Aspects

P Loans to policyholders, transfer of accumulative dividends and deferred funds
P Inquiries about insurance policy details, change ofaddress, reissue of life insurance premium payment certificate, request for application form
For details about services, please go to each company’s website.

Daido Life

P Customer Service Center Open on Saturdays
Taiyo LifeAt Taiyo Life’s Customer Service Center (call center),professionally trained communicators respond to
customers’ requests quickly and attentively.
Customer Service Center operates on Saturdays as well
to render services to the customers who are busy on
weekdays.

P Amendment of contract, insurance claims
P Web-ATM (loans to policyholders, withdrawal of accumulative dividends, etc.)
P Inquiries about insurance policy details, inquiries aboutaccount for automatic withdrawal of insurance premiums,
accounting method of insurance premiums
T&D Financial LifeP Outline of policy details (coverage details and change inaccumulative funds)
P Transfer of accumulative funds, set up transfer ratio (inthe case of contracts with periodic increase)
P Requesting forms for various procedures to be sent by
mail, change of address, reissue of life insurance premium payment certificate, etc.

Customer Service Center

T&D Life Group Corporate Responsibility Report 200930

Social Aspects

Together with Our Employees
The T&D Life Group’s policy is to develop human resources with rich creativity and a solid ability to get things done.
The Group also works toward creating a workplace that encourages employees to work with vitality and pride.

P Reemployment of Seniors

P Human Capital Development Policy

reemployment program for employees reaching the mandatory

The T&D Life Group has formulated education and training
programs under the basic policy of developing humanresources with rich creativity and a solid ability to get things
done as set out in the T&D Life Group’s Management Vision,and is working to develop and improve employees’ skills.

retirement age. Under this program, individuals meeting certain

P Employee Education and Training L A11

 T&D Life Group Employee Statistics L A 1(Group’s three life insurance companies)

FS4

The Group’s three life insurance companies provide

The Group’s three life insurance companies have introduced acriteria can be hired back up to the age of 65. In addition,
Taiyo Life and Daido Life offer life planning seminars to theemployees waiting to retire to help them consider their postretirement life style including job opportunity and daily life.

employees with education and training through on-the-job
training, group training and supporting self-educational efforts.
The Group encourages the personal career improvement
efforts of individual employees by actively supporting theirefforts to earn professional qualifications and offering a broadarray of courses through correspondence study, e-learningand other educational and training channels.
For more information about education and training for customer service employees, please see p. 29.

P Human Rights Education

HR3

The T&D Life Group holds human rights education sessions
for all employees more than twice a year, touching on
discrimination due to social class or disability, sexual
harassment and other human rights issues, to deepen
employees’ understanding of human rights issues.
P Human Rights Campaign Daido Life
Every year, Daido Life holds a Human Rights Slogan Contest
during Human Rights Week (December 4–10), calling forparticipation by all the employees and their families. In fiscal
2008, there were 2,709 entries; three were chosen as thebest slogan and 21 honorable mentions were awarded. The
best slogan entries are printed on memo pads and otherstationery for internal use
so that they are always
in view. Through such acontinuing activity, we
educate employees toraise their awareness ofthe dignity of humanity“A pleasant and reassuring society that
doesn’t tolerate discrimination or bullying”
and help them develop(this slogan appears at the bottom of memo pads)
better understanding ofMemo
pad carrying a printed human rights slogan
human rights issues.

P Employment of People with Disabilities L A 13
As of the end of March 2009, three insurance companies in theGroup hire 287 employees with disabilities in total, which accounts
for 1.85 percent of total employees. The Group endeavors tocreate workplaces that accommodate people with disabilities.

31

L A11

Use and Development of Diverse Human Resources

T&D Life Group Corporate Responsibility Report 2009

No. of employees
MaleFemaleSales representatives
Male
FemaleAdministrative staff
Male(Managers)
Female(Managers)
Career-track/area career-track
employees, others
Clerical employees
Customer service staff

LA2

L A13

Employees on staff No. of people hired
March
March
FY2007 FY2008
31, 2008 31, 2009
19,484 19,997
3,830
4,417
4,527
4,467
335
296
14,957 15,530
3,495
4,121
11,926 12,382
3,101
3,792
741
644
66
54
11,185 11,738
3,035
3,738
6,624
6,811
692
614
3,823
3,786
269
242
(1,964)(1,981)

2,838

2,988

(131)

(135)

4,461
2,163
934

423

372

4,582

380

388

2,229
804

312
37

226
11

(T&D Holdings consolidated)
Business division
Insurance and Insurancerelated Businesses
Investment-related
Businesses
Administrationrelated Businesses
Total

No. of employees
March 31, 2008
March 31, 2009
19,579(1,970)20,084(2,089)

500

(56)

547

(54)

812

(491)

868

(443)

20,891(2,517)

21,499(2,586)

Note: The number of employees shows the number of employed staff and does
not include executive officers. The number of part-time workers is shown in parentheses as an annual average, which is not included in the employees.

 Workplace Data (Group’s three life insurance companies)
Employment rate of persons with disabilities (%)
No. of employees taking maternity leave
No. of employees taking child care leave
Male
FemaleNo. of employees taking nursing care leave
Male
FemaleAvg. no. of paid vacation days taken

FY2007
1.97
96
109
35
74
6
0
6
10.2

FY2008
1.85
123
150
43
107
11
0
11
10.4

Change in method for calculating the number of employees taking maternity
leave, child care leave and nursing care leave, respectively
In conjunction with different calculation standards now in effect when applying to the laborauthorities, the method for tabulating the number of employees taking the respective leaves
above was changed to include only employees whose leave began in the relevant fiscal year.
Employees continuing on leave begun in a previous fiscal year are not counted.

In line with its objectives of being an organization where all the employees

The T&D Life Group carries out a systematic job rotation so thatcan work with motivation and enthusiasm, the Group strives to provide

employees can enhance their ability to carry out their works with a broad

opportunities and promotion to the employees without regard to gender.

perspective over the entire company through experiencing varied jobs

The Group is taking steps to make a full use of female abilities andwithin the organization.

develop workplaces where women can thrive by means of promoting

Young employees are rotated through different positions, for example

talented female employees to managers, encouraging female

moving between the Head Office and branches for a certain period afteradministrative employees (clerical workers) to change their businessthey start working, or moving from sales to administrative jobs, or vicecarrier to main career-track, creating a new product development teamversa, in order to acquire basic knowledge and improve their skills. At

comprising of female staff only aiming at developing new products fromthe managerial level, employees who have served as Head Office division

the female point of view, etc.

managers are to serve as branch managers, or branch managerial

P Career Vision Seminars Daido Life

staff are rotated to Head Office positions in order to strengthen their
management skills.

Daido Life holds so-called “Career Vision Seminars” for female

The Group’s three life insurance companies also give employees chances

administrative staff to give them an opportunity to think about

to improve their capabilities and support their career improvement.

their future career plans. At the seminar in March 2009, an
outside lecturer working in a managerial position was invited totalk about how women can work in different life stages, startingand so on, how women can split time between work and private
life, job satisfaction to be a manager, etc. Participants werevery pleased to attend the seminar, saying “This has helped me
develop a clear picture of my future business career” or “ThisTaiyo Life

Daido Life

T&D Financial LifeP Personnel Exchanges

Personnel transfers among the Group’s three life insurance companies
allow employees to have a working experience in a different company in
the Group, which invigorates communication among Group companies
and, through employees sharing the strengths of each company, canhelp make the Group more competitive.

to continue offering similarseminars with a broader

Environment Aspects

On the job training at different workplace gives employees a valuable
experience to grasp the whole picture of the business operations a partof which they are responsible for, and also an opportunity to build ahuman relationship with their colleagues working in the different part ofthe organization. Taiyo Life

to work.” Daido Life plans

VOICE �Employees can apply for different job and positions and for MBA degree, etc.

P OJT at Different Workplaceseminar raised my motivation

coverage going forward.

P Internal Recruiting

Social Aspects

job as a full-time employee, getting marriage, raising children

Economic Aspects

Initiatives to Offer Employees Opportunities for GrowthManagement

Initiatives to Support Women’s Careers

Career Vision Seminars<Voice of a Female Manager>

Norie Taniguchi, Manager

Internal Control DivisionInternal Control & Businness Process Planning Department, Daido Life“I started working in my present positionin April 2009. I feel that managers are
expected to identify problems correctly,
show effective and specific solutions totheir subordinates, and work together with the staff in charge
toward solving the problems. As my department often
requests other departments to conduct detailed
investigations or fact-findings, the manager needs to have anegotiation skill, flexibility and an ability to coordinate withothers.
“Although I have been promoted to a manager’s position, I
try to stay relaxed, not being afraid of making mistakes, andjust keep working steadily on my job. I’ve never felt that myjob was difficult because I was a woman. My goal is not tobe an ideal manager; but to fulfill my duties by taking a
positive attitude toward solving problems. It might beimportant not to raise the hurdles too high and keep onchallenging by being myself.”

VOICE �<Voice of an OJT at
Different Workplace System User>

Kaori Iwamura

Claims & Benefits Quality Management Division
Insurance Claims & Benefits Department, Taiyo Life“I started working for Taiyo Life in April
2008. After training in the current
department, I spent three weeks at the
Urawa Branch.
“My task at the Urawa Branch was to check the appropriatenessof works in three departments in charge of accepting contracts,
keeping contracts in force and paying insurance claims
respectively. During my stay at the branch office, I had a valuable
experience to see key operations associated with life insurance
including making a new contract, processing of insurance
claims. This experience was quite useful to understand thehands-on operations of a life insurance company. Also to see
how branch staff communicates with customers and to hear thatbranch manager compares customers to family truly impressed
me. One of the customers expressed ‘thank you’ to me which
was another valuable experience for me. I feel that the things I
learned and experienced during my short stay at the branch
office really help me in my daily job.”

T&D Life Group Corporate Responsibility Report 200932

Social Aspects| Together with Our Employees

Creating a Good Workplace

P Dialogue and Consultations with the Labor Union

P Work-life Balance Initiatives

labor union, and the companies and labor unions work together to maintain a

The T&D Life Group promotes to achieve work-life balance assound labor-management relationship based on the spirit of trusting each other.

part of its efforts to create a workplace that makes work feel

The companies have proactively discussed with the unions on a wide range

worthwhile and allows employees to use their capabilities toof issues including business management, corporate policies, wages, working

the fullest. E-learning training offered on a continuing basis

hours, holidays, personnel management system, fringe benefits and so forth. We

explains what the Group is trying to accomplish by achieving

believe that a truly meaningful cooperative relationship between the companies

work-life balance and provides employees with opportunities toand the labor unions can be built only through straightforward discussions based

reevaluate their workplaces and the way they work.

upon their respective viewpoints, and that that kind of relationship will motivate

In November 2008, Toshie Komuro, president of Work Life

employees and bolster competitiveness of the companies.

Each of the three life insurance companies in T&D Life Group has an independent

Balance Co., Ltd., was invited to talk at a seminar for Group
department managers on the theme of work-life balance as a

P Employee Awareness Survey

management strategy.

The Group’s three life insurance companies conduct employee

Regarding support for the development of the next generation,awareness surveys addressing issues like job satisfaction, working

following the first certification of April 2007, in May 2009 theconditions and the personnel evaluation system, and haveGroup’s three life insurance companies received certification

implemented various measures based on the results. Employees

for their second-stage action plans as meeting the criteria

opinions are used for management direction to gauge the extent toof the Law for Measures to Support the Development of thewhich the present human resources system has been accepted, to

Next Generation. Additionally, in April 2008, T&D Informationassess the management of this system, and to evaluate employees’

Systems was the first company insatisfaction, which has a significant impact on customer satisfaction.

Saitama Prefecture to acquire thiscertification among the companies

P Health Care for Employeeswith less than 300 employees and<Human Resources Department Initiatives>
The T&D Life Group pays attention to mental health of employees.
A medical specialist under contract to the Group is available for
employee consultations and treatment. The Group’s three life
insurance companies implement the following measures.

in information service industry.

Work-life balance training

E-learning“Kurumin,” the logo for Next
Generation Certification

VOICE �<Voice of an Employee
Who Took Child Care Leave>

Isao Uchida

Personnel Division
Personnel and General Affairs Department
T&D Financial Life

“I took a week of child care leave when mysecond child was born. That made my wife
very happy since she was worried how she
would be able to deal with a newborn baby
and the three-year-old son. During my leave, I helped the baby takea bath every morning, and in the afternoons I took my elder son
somewhere like park, swimming pool. My elder son learned how to
go under water and helped me change the baby’s diaper. It was
really a wonderful experience to take care of my family and to see
my son growing up like that. At the same time, I saw for myself how
difficult child-rearing is: spending all my time either holding the babyor playing with my son. After I went back to work I made a point ofworking more efficiently, and when I finish my work of the day, I
tend to go home as early as possible so that I could help my wife.
“Child-rearing is a tough job, but it’s fun and full of discoveries too.
My experience made me want to work harder for my family, and I
will cherish every moment spent with my children.”33

T&D Life Group Corporate Responsibility Report 2009

LA8

L A9

Taiyo LifeAll the managers attend the mental health seminar by outside
lecturers and encouraged to take the Mental Health Management
Test sponsored by the Osaka Chamber of Commerce and Industry.
Daido LifeA “Mental Health Check” is conducted to help employees properly
understand their own mental health situation and learn how to deal
with stress appropriately.
T&D Financial Life

Mental health training via e-learning<Health Insurance Societies>
The Group’s three life insurance companies have their own independent healthinsurance societies, which work to prevent lifestyle diseases, promote good health andengage in other activities to help society members manage their health. The societies
cover costs to treat diseases and injuries suffered by members or their dependents;
conduct public relations campaigns to raise awareness about proper use of healthinsurance; pay subsidies for annual physical examinations such as complete medical
check-ups and promote cancer screening. Since fiscal 2008, the companies’ healthinsurance societies have also been implementing specified medical check-ups andhealth care guidance with the aim of preventing lifestyle diseases.

Social Aspects

Together with International Society and Local Communities

EC 8

The T&D Life Group wishes to be a good corporate citizen and grow together with the society.
The Group’s companies, employees and foundations are engaged in a wide range of social
contribution activities.

Wishing to contribute to the local community, in 1982 Taiyo
Life began a clean-up drive around the Taiyo Life Head Officeonce a year. In 2004, it renamed this activity the “Nationwide
Clean Campaign” and its branch offices throughout Japan
have started clean-ups of the areas around their own
buildings. In fiscal 2008, a total of 8,398 Head Office, affiliate
and branch employees and their families participated in thiscampaign.
The Shiodome Head Office implemented the “MinatoShiba Area Clean-up Project” in cooperation with Tokyo’s
Minato Ward Office and also in a tie-up with the “No Butts
Here” (areas where throwing cigarette butts on the street isprohibited) movement. Member companies of the Minato Ecoconscious Consortium and local residents took part as well.
In the Minato-Shiba Area Clean-up Project in July 2009,
employees from other Group companies (Daido Life, T&D
Financial Life, T&D Asset Management, T&D Holdings andothers) also helped out, promoting stronger awareness of theenvironment of their work locations.

Blood Donation Drive

Donating blood at the Shiodome Head Office Building

Disaster Relief Fund Donations
The T&D Life Group or Group companies makecontributions to disaster relief funds when major disasters
occur.

P Group Donations in Fiscal 2008
In May–June 2008, Taiyo Life, Daido Life, T&D Financial
Life, the Friends of Taiyo Life Goodwill Circles and the
Daido Life Employees’ Community Contribution Club
gave a total of five million yen to support relief andrecovery efforts after a major earthquake in China’s
Sichuan Province. The donations were made via theJapanese Red Cross Society, the Japan Committee for
UNICEF and Japan Platform.

Nagoya West Branch

Environment Aspects

The T&D Life Group arranges blood donations to theJapanese Red Cross Tokyo Metropolitan Blood Center.
In a joint Group undertaking every year, a blood donation
clinic is set up for two days at the Shiodome Head Office
Building. Executives and employees are encouraged
to donate and 134
people did so in fiscal
2008. Beginningin fiscal 2009, theGroup is planningto hold this activity
twice a year.

Social Aspects

The T&D Life Group has formulated the T&D Life GroupCSR Charter based on the Group’s Corporate Philosophy
of “With our ‘Try & Discover’ motto for creating value,
we aim to be a group that contributes to all people
and societies.” The Group will, naturally, contribute tocommunities and to society through its main business,but takes it for granted that companies as corporate
citizens are expected to contribute to society.
In accordance with this thinking, the Group contributes
to society in numerous ways through the activities of T&D
Holdings, Group companies and Group foundations andthrough volunteer work on the part of Group executives
and employees.

Economic Aspects

Nationwide Clean Campaign Taiyo LifeManagement

Social Contributions by the T&D Life Group

Shiodome Head Office

Supporting the Japan Down Syndrome Society Taiyo Life
Taiyo Life supports the Japan Down Syndrome Society andparticipates in some activities in partnership with them. The
company makes meeting rooms in its building available to theSociety for seminars and for council and board meetings. It has
also placed ads for Waku Waku Pokke children’s insurance in theSociety’s monthly journal. Head Office and branch employees takepart in the Society’s activities as volunteers and the movement has
begun to spread.
In fiscal 2008, our employees supported, as volunteers, the activities
of Japan Down Syndrome
Society such as National
Convention held in Gotemba,
Shizuoka Prefecture, a bicycleriding training session in Otsu,
Shiga Prefecture, a gathering
at the Society’s Osaka branch. A bicycle-riding training session for people with Down Syndrome
T&D Life Group Corporate Responsibility Report 200934

Social Aspects| Together with International Society and Local Communities

Supporting the National Sports Games forthe Disabled Daido Life

Employees’ Voluntary Initiatives

In 1992 when the company celebrated its 90th anniversary,
the first National Sports Games for the Mentally Handicapped(Yuaipic)* was held in Japan, and Daido Life has been a
special supporter of this annual event since then.
It is the largest sports event for people with disabilities
in Japan, aiming at helping the disabled experience apleasure of sports, deepen the public understanding about
the disabled and promote greater social participation by thedisabled. Every year, Daido Life sets up a place called Daido
Life Corner in the Fureai Plaza where
the athletes and others interact.
Many executives and employees ofDaido Life participate in this event
Eighth National Sports Games
as volunteer staff.
for the Disabled

The Friends of Taiyo Life Goodwill Circles (“Friends”) wasestablished in December 2005 to support voluntary social
contribution activities by the company’s executives andemployees.
The members of Friends are executives and employees of
Taiyo Life and its affiliates totaling 8,521 people as of March 31,
2009. Members voluntarily contribute odd amounts under 100
yen from their monthly take-home pay or an amount, integral
multiple of 100 yen (maximum 1,000 yen) per month.
At the same time, the company adopted a matching gift system
to support the activities of the Friends. Under this system, thecompany provides a certain amount onto the donations madeby the members or bears the associated costs.

*The National Sports Games for the Mentally
Handicapped merged with the National Sports
Games for the Physically Disabled in 2001,
and has been held as the National Sports
Games for the Disabled since then.

A competition at the Games

Supporting Open Lectures at Universities Daido Life
Daido Life began supporting open lectures at universities in fiscal
2002 to mark the centenary of its founding. In the seven years since

P Friends of Taiyo Life Goodwill Circles Taiyo Life

Donating Book Bags to Children in Afghanistan and Mongolia
Taiyo Life began participating in and encouraging company-wide
cooperation in this initiative by the Japanese Organization forInternational Cooperation in Family Planning (JOICFP) in fiscal 2006.
That year, 108 book bags were collected, 209 in fiscal 2007, 182
in fiscal 2008 and 225 in fiscal 2009 (as of April 2009). The bags
are sent to children in Afghanistan andMongolia.
The Friends of Taiyo Life Goodwill Circles
cover the shipping cost of 1,800 yen
per bag. Please see the JOICFP website
for local reports and other information
concerning the donated book bags.
In-house sales representatives withdonated book bags (Shinjo Sales Office)then, the lectures have been a popular event attended by a total of
6,000 people.

P Daido Life Employees’ Community Contribution Club Daido LifeIn fiscal 2008, open lectures were held at nine universities—

The Daido Life Employees’ Community Contribution Club is a

Fukushima University, Hosei University, Meiji University, Yokohama

volunteer organization of executives and employees established in

National University, Nanzan University, Kansai University, Kwansei

1992 to promote and support various volunteer activities. Funds from

Gakuin University, Hiroshima University

donation drives soliciting voluntary contributions from executives andand Fukuoka University—to offer

employees and through rounding off the last digits of their salaries, andbusiness owners of small to medium

from events such as charity bazaars, are contributed to facilities andenterprises and others an opportunity

organizations dedicated to helping people with disabilities throughout

to obtain the latest knowledge andskills relevant to business management.

Japan and are used to support relief efforts in disaster-stricken areas.
Open lecture

One-day Outing Volunteer Activity

Supporting Learning on Alternative Investing Daido Life
Daido Life supports lectures on alternative investing, which
is one of several investment methods. From fiscal 2003 to
fiscal 2008, Daido Life made a yearly donation of 100,000
US dollars to Columbia University’s business school
alternative investment program as a lead corporate sponsor.

35

T&D Life Group Corporate Responsibility Report 2009

Volunteers helping out

At Daido Life, the One-day Outing Volunteer
Activity for the Physically Disabled, in which
employees take a volunteer leave day tospend with the physically disabled, wasestablished in 1994. This activity helps
deepen understanding of disabilities asvolunteers spend the day interacting or
assisting disabled individuals who have few
opportunities to go out.

Activities of Foundations

Taiyo Life
Himawari Foundation

Related Photos

Project grants

Grants to projects by volunteer groups and NPOs working to benefit
the elderly or the disabled living at home.

Research grants

Grants for research and surveys regarding lifestyle diseases and thehealth and welfare of the elderly<Examples of project grants>
P“Salon for Seniors”
Grant to Homoi, a women’s group in Shimonoseki, Yamaguchi Prefecture, working to improve welfare
for seniors, to operate a “Salon for Seniors,” a meeting place where seniors can gather casually to dorhythm calisthenics and hear talks about health.

Smiles from “Salon for
Seniors” users

Economic Aspects

Established in 1984 to commemorate the 90th anniversary of thefounding of Taiyo Life.
This foundation works to improvesocial welfare in Japan by sponsoring projects to enhance welfare for the elderly and the disabled.

Main Activities

Management

Establishment and Objectives

PSupport for children with disabilities
Grant to Pan no Ki, an NPO in Osaka that manages a child day care center, for the purchase of equipment to improve the physical abilities of preschool children with disabilities. This grant enabled thegroup to add uni-jump and uni-step equipment to its program, allowing children with lower limb disabilities to improve function enjoyably, safely and with less risk of injury due to falls.

Children enjoying the unijump equipment

PRegional health and welfare research grants

Provides grants for research in community health, medical care andwelfare by people working in the health or welfare fields.

Daido Life
Welfare Foundation

Provides grants to salaried workers volunteering for senior or disabled
persons’ welfare activities on their days off.

PSenior volunteer activity grants

Provides grants for volunteers aged 60 and above.

Grant presentation ceremony

At the end of fiscal 2008, the foundation had funded a total of 2,835
projects through grants totaling 1,429.96 million yen.
Provides advice regarding long-term care for the elderly and the sick,and classes for training in in-home care techniques. Held jointly with
the Osaka Center of the Japanese Red Cross Society since 1980, with
4,400 people taking the course since then.

Publication of healthbrochure

Publishes the “Environment and Health” series, brochures with clearly
written articles aimed at promoting health maintenance and improvement and correct understanding of various illnesses and preventive
measures. A total of 65 brochures have been published since 1975.

Daido LifeFoundation Awards
for Area Studies

Daido Life Foundation Awards for Area Studies are presented toresearchers with significant achievements in areas of particularimportance to their part of the world, and to people with significant
accomplishments in advancing mutual understanding at the international level. Since 1986, individuals with significant accomplishments
in advancing mutual understanding at the international level havebeen recognized annually with the Area Studies Special Award.

Translation andpublication activities

Translation and publishing of modern Asian works into the Japanese
language, and of Japanese literature and biographies into various
Asian languages, for the purpose of deepening mutual understanding
between Japan and Asian countries. Donation of books to national
libraries and other bodies.

Activities in support
of education

Scholarships for students from Southeast Asia, to develop humanresources contributing to international mutual understanding.
Donation of Japanese-language literary works to universities withJapanese language courses. Donation of books and school supplies
to disadvantaged children.

At a home nursing
consultation and training
seminarEnvironment Aspects

Home nursing
consultation andtraining seminars

The Daido Life Foundation
The Daido Life Foundation wasestablished in 1985 to mark thecompany’s 80th anniversary.
The objective of the foundation isto promote international mutual
understanding through cultural
exchanges or grants, contributing
to the internationalization ofJapan.

PCompany worker volunteer activity grants

Social Aspects

Established in 1974. Based on
the idea of “people first,” thisfoundation helps promote healthmaintenance and social welfare in
Japan by providing grants to
reduce health hazards due to apoor living environment, etc.

Regional health andwelfare research
grants, volunteer
activity grants

Awards for Area Studies
presentation ceremony

Scholarship students<Activities in the Future: School Building Project>
As part of commemorative activities for the centennial of its founding, Daido Life has built 16 schools in five Southeast Asian countries—
Myanmar, Thailand, Cambodia, Laos, Vietnam. This commemorative project has been completed, but more schools will be built in Laos,
where the education infrastructure is poor, from fiscal 2009 to fiscal 2013 to further advance international mutual understanding.

Basic Policy and Approach
PSchools suitable for the locale will be built after seeing local conditions and receiving input from local residents.
PSeveral schools will be inspected, to decide which schools to rebuild.
PFoundation officials will attend completion ceremonies, to ascertain that construction has been completed.
T&D Life Group Corporate Responsibility Report 200936

Environmental
Aspects

Together with the Global Environment
The T&D Life Group takes steps to reduce CO2 emissions to preserve our precious global
environment for the next generation, and undertakes various environmental conservation
projects, such as preserving forests and afforestation projects.

P Lights Down Campaign

T&D Life Group Environmental Policy

At 8 p.m. on the evening of July 7, 2009, all lights were

In April 2006, the T&D Life Group formulated the T&D Lifeturned off in the offices at the T&D Life Group’s Shiodome

Group Environmental Policy, to clarify the Group’s stand on

Head Office Building. This was done in support of thethe environment and to make the policy known to execu-“Candle Night” movement organized by a private sector

tives and employees. The Group also promotes various

group and in cooperation with the Environment Ministry.

activities to reduce the environmental load.

Indoor lights and outdoor lighting were turned off to raise

The Group has also set out Green Purchasing Standards

awareness of environmental issues from the viewpoint ofand gives priority to purchasing environmentally friendly

preventing global warming as the Group s participation in
the “Reduce CO2: Lights Down Campaign.”

products whenever possible.

To raise awareness of environmental issues, the Group is

T&D Life Group Environmental Policy

4.8

FS1

Acknowledging the importance of environmental issues, the T&D Life Group will
carry out business activities with full awareness of the importance of environmental
concerns and will give sufficient consideration to global environmental protection
based on the T&D Life Group CSR Charter. The Group will achieve sustainablegrowth along with the society while fulfilling the public mission of life insurance andother businesses, and undertaking its corporate social responsibilities.
The Group established the following environmental policy and is committed tocomplying with it in all of its business activities.

1. Environmental Conservation Efforts through Business Activities
We will contribute to the protection of the global environment in all of ourbusiness activities.

calling on executives and employees to turn lights out twicea year, in July and December, beginning in fiscal 2009.

The Group s logo on the Shiodome Head
Office Building (before lights-off)Lights in offices and on
the logo were turned off
simultaneously

2. Reduction in Environmental Impact
Recognizing the environmental burden of resource or energy consumption andwaste emissions, we will work toward reducing environmental impact by conserving energy or resources, recycling resources, and promoting green purchasing.

3. Compliance with Environmental Laws
We will observe all environmental laws and regulations.

4. Promotion of Environmental Awareness Raising Activities
We will raise environmental awareness among all Group members throughawareness-raising activities to promote environmental protection initiatives.

5. Continuous Improvement in Environmental Initiatives
By setting environmental objectives and reviewing them regularly, we will endeavor to continuously improve our environmental performance.
All members of the T&D Life Group are notified of this environmental policy, whichis also publicly disclosed.

Major Initiatives of the T&D Life GroupEN 7 EN 18(Fiscal 2008)
P “Cool Biz”/“Warm Biz”
As measures to help stop global warming, the T&D LifeGroup sets thermostats at 28°
C (82.4°F) from June
through September for Cool Biz and at 20°
C (68°
F)
from November through March for Warm Biz.

37

T&D Life Group Corporate Responsibility Report 2009

Forest Conservation and Afforestation
Activities Taiyo Life
Taiyo Life has forests in two locations in Japan, NasuShiobara (Tochigi Prefecture) and Takashima (Shiga Prefecture), and conducts afforestation projects there.
The life insurance industry uses vast amounts of paper in
its business, for office use and for product pamphlets andother documentation. As a way of restoring resources, theGroup is involved in forestry projects in these two locations.
The Forest of Taiyo Life at Nasu-Shiobara makes use of
the Corporate Forest Program administrated by the Japanese government s Forestry Agency. With the cooperationof the local Enna District Forest Office and NPO groups,
many Taiyo Life employees volunteer to plant trees, thin
man-made Japanese larch forests and build forestry roads.
The Group s second forest, Taiyo Life Kutsuki no Mori,
is inside a forest park owned by the city of Takashima.
Kutsuki no Mori is a thickly wooded area containing mainly
chestnut, konara oak and other broadleaf species. In April
2008, it was designated a forest therapy base by the National Land Afforestation Promotion Organization.
Working in partnership with NPO groups and the city of Ta-

Economic Aspects

Employee volunteers thinning thewoods at the Forest of Taiyo Lifein Nasu-Shiobara

leaved forest of western Japan, it fills the atrium of thebuilding, occupying a 2,500 square meters, 17 meterhigh area on the building s first two floors. Visitors canenjoy its pleasant, relaxing atmosphere and feel everyday
cares fall away the moment they come into the building.
This pioneering initiative has been maintained for over 30
years through the ingenuity of its countless contributors.
Well-loved by the community as a place where people andplant life coexist, it has been praised as a prime example
for the development of future urban greening technology.

Managementkashima to conserve this forest, Taiyo Life hopes to restore
habitats for various living organisms and also contribute toimproving water quality in Lake Biwa through a river in theforest, which flows into the lake.

Observation taking place at Taiyo
Life Kutsuki no Mori, Takashima“Chopsticks Project” to Promote Use of
Culled Wood Taiyo Life*In Japan, 40 percent of forests are man-made, planted to supply
lumber. If the plant it, raise it, harvest it, use it wisely fails to work
properly and forests are not conserved, they will not function effectively
to absorb CO2 or prevent natural disasters.

Life-nurturing Indoor “Green Space”

Environmental Communications andEducational Activities

FS4

The T&D Life Group works together with Associates of the
Earth, a Japanese environment-related non-profit organization that produces the Japanese-language editions of
Our Planet and TUNZA, published by the United Nations
Environment Programme (UNEP). These two publications
are distributed to all T&D Life Group companies, primaryand middle schools, public libraries and other bodies toraise awareness of environmental issues. The Group isalso a supporter of the UNEP World Environmental Information Exhibition operated by Associates of the Earth andwhich is being held from July 2009 to October 2010.
The UNEP World Environmental Information Exhibition isa free exhibition featuring environment-related photos andinformation panels taking place at six locations in Japan,
including Tokyo Big Sight, Makuhari Messe and Naha Airport.

Environment Aspects

Disposable chopsticks made from culled wood

The Daido Life Esaka Building Green Space

Social Aspects

Taiyo Life implements the Chopsticks Project to promoteuse of disposable chopsticks made from timber culled inthinning operations and lumber scraps by the employees
at lunchtime, which represents the use it wisely portionof the plant it, raise it, harvest it, use it wisely cycle.* The
company also makes disposable chopsticks to give away
to customers (five sets per pack), and executives andemployees purchased 412,850 sets of these chopsticks
between September 2006 and March 2009.

Daido LifeThe Daido Life Esaka Building, built in 1972 as part ofcommemorative activities for the company s 70th anniversary, was provided with an authentic indoor green space.
Based on the concept of green space as the image of thelife insurance business nurturing life, this Green Space
forms a public area extending from the Esaka subway
station to Esaka Park. Reproducing an evergreen broad-

Our Planet, Tunza

UNEP World Environmental
Information Exhibition
T&D Life Group Corporate Responsibility Report 200938

Environmental Aspects| Together with the Global Environment

Group Environmental Performance Data
The T&D Life Group keeps track of key environmental performance data and takes steps to reduce the environmental footprints.

3.9

1 CO2 Emissions
Indirect CO2 emissions (GHG Protocol Scope 2)

10,876

10,563

9,991

EN 18

Emission coefficient:0.555 t-CO2/1,000 kWh*1

Direct CO2 emissions (GHG Protocol Scope 1)(t)12,000

EN 16

Paper
waste

Waste otherthan paper

84

85

605

8,000

600

9,594

10,12910,436

400

4,000

99

78

294

506

(%)
100

87

397

434

FY2006440

FY20070

FY2008530

FY2006

44

79

80

592

47

60
40

21

452
233
61

200

2,000
0

Final disposed amount
Recycled amount

(t)
1,000

Recycling rate (paper waste)
Recycling rate (other than paper waste)

800

10,000

6,000

E N22

5 Waste Generation and Recycling

132

513

163

74
59

FY2007

FY2008

87
76

20
0

*1: Ordinance on calculation of greenhouse gas (GHG) emissions due
to business activities of specified businesses

EN 4

2 Electricity Consumption(1,000 kWh)
19,000

Shiodome Shibarikyu Building

18,25017,287
17,000FY2006

FY2007

FY20083 Water Consumption and Reclaimed Water Usage Rate
EN 8
（千 kWh）
Water consumption
19,000(1,000m3)
100
80
18,00060

18,804
18,25073

Reclaimed water usage rate

92

(%)
50

88

30

17,287109.8
0FY2006
2006年度FY2007 2008 年度
2007 年度

0

FY2008EN 1

4 Office Paper Consumption
Amount consumed

No. of sheets consumed(1 million sheets; equivalent to A4 size)
100
221

234

223

200

80

150

59

54

39

55

60

100

40

50

20

0

Graphs
4 *3

T&D Holdings○○

Taiyo Life○○

Daido Life○○

T&D Financial Life○○

T&D Asset Management

○

×

3 .7
Graphs5○*4Tokyo Daido Life Building

○

○

○

Daido Life Osaka Head Office Building

○

○

○

Taiyo Life Urawa Building*2

○

×

×

*2: T&D Information Systems and T&D Customer Services are locatedin the Taiyo Life Urawa Building.
*3: Office paper consumption is for the Head Office units of the Group s
three life insurance companies, and includes consumption by Head
Office units in locations other than those noted above.
*4: This is waste processing data for the entire Shiodome Shibarikyu
Building and includes waste contributions from companies,
restaurants, retailers and other entities not associated with the T&D
Life Group.

20

12.4

20

(t)
250

40

36.3

40
17,000

0

EN 10

3 .6

Graphs123

18,80418,0000

P Scope of Environmental Performance Data

FY2006

FY2007

FY2008

T&D Life Group Corporate Responsibility Report 20090

P Expansion of Scope of Energy Consumption Data
(in response to the Revised Energy Conservation Law)
3 .9
In response*5 to the Revised Energy Conservation Law, allGroup companies now keep track of energy consumption
for their entire unit.
*5: Reporting to meet the law’s requirement that enterprises using energy
equivalent to 1,500 kiloliters of crude oil in fiscal 2009 declare and report thisto the Ministry of Economy, Trade and Industry.

Environmental Targets and Achievements
Management

In fiscal 2007, T&D Holdings began setting quantitative environmental targets. Using these targets, the company makes efforts to reduce environmental burdens. The company periodically reexamines environmental targets and continues improving its environmental performance.
EN 4

P Electricity Consumption

EN 5

EN6

Consumption by unit of floor space (kWh/m2)(kWh/m2)
170
Exceeded
FY2008target by
165

2,800

FY2008 target

2,827

2,690

162

2,714

2,741

2,700

1.9%

160

157

2,600

155

FY2006(base year)

9,000

8,925

8,860

FY2008 target 8,750

8,000

7,038
7,000

6,000

FY2008 target

FY20070

FY2008

Measured for: Shiodome Shibarikyu Building Head Office (T&D
Holdings, Taiyo Life, Daido Life, T&D Financial
Life, T&D Asset Management)
Base year: Fiscal 2006 second half through fiscal 2007 first half

<Steps to Be Taken in Future>
P The Group will consider reducing number of servers byswitching to high-performance, energy-efficient servers whencurrent servers are due for replacement.
PWe will strengthen control over electricity consumption by“Cool Biz” and “Warm Biz,” turning off unnecessary lights andoffice equipment, restriction on the use of air-conditioner outside business hours, etc.
EN1

Target

FY2007

FY2008Over 95%

96.4%

95.6%

Measured for: T&D Holdings<Result for Fiscal 2008>
Target was achieved although slightly down from last year

FY2006(base year)

FY2007

FY2008

Measured for: T&D Holdings
Base year: Fiscal 2006 second half through fiscal 2007 first half<Long-term Target>
Reduce more than 7% compared to the base year in fiscal
2012 (1.3 % reduction vs. previous year)<Result for Fiscal 2008>
Achieved 19.6 percent reduction compared to the target.
<Steps to Be Taken in Future>
PThe Group will continue its efforts to reduce paper consumption by reducing printing of meeting materials, both sides
printing, and other means.

Environment Aspects<Result for Fiscal 2008>
Overall energy consumption was 1.9 percent above the target
figure. Although the energy consumed by each company was
down by 4.1 percent below the target, energy consumption
in the Group’s communal part exceeded the target by 14.2
percent. This is attributed to a large increase in the number ofservers in the server room.

0Social Aspects<Long-term Target>
Total: Reduce more than 2% on average over five years(fiscal 2008–2012) compared to base year
Per unit of floor space: Not to exceed base year figures

P Green Purchasing Ratio−19.6%
vs. target
for FY2008

155

154

0

(kg)

Economic Aspects

Total(1,000 kWh)
2,900

EN1

P Volume of Office Paper Consumed

Note: As the Group-wide target was established in fiscal 2009, T&D Holdings’ target for office
paper consumption has been discontinued.

P Expansion of Scope of Targets Setting for Office
Paper Consumption and Green Purchasing

T&D Holdings and the Group s three life insurance companies have implemented the following common targets
starting from fiscal 2009.
Volume of office paper consumed will be cut by 5% on

Reduction in average over the 5 year period of fiscal 2009–2013
office paper compared to the base year* (Year on year target: 1.7 %consumption reduction. Scope: Head Office units of the Group
companies).

More than 80% in case of stationery and office supplies
Green
purchasing orders through the Internet (Scope: Head Office andbranches of the Group companies).
ratio*Base year: 5 years ending fiscal 2008

<Steps to Be Taken in Future>
PIn principle, a permission should be required to purchase any
products other than eco products
T&D Life Group Corporate Responsibility Report 200940

T&D Life Group Corporate Responsibility Report 2009

G3 GRI Content Index

3 .12
Indicator

Pages inthis report

1.1

Statement from the most senior decisionmaker of the organization (e.g., CEO, chair, or equivalent senior position) about therelevance of sustainability to the organization and its strategy.

5–8

1.2

Description of key impacts, risks, and opportunities.

5–8

Item

Notes

1 Strategy and Analysis

2 Organizational Profile
2.1
2.2
2.3
2.4

Name of the organization.

Location of organization’s headquarters.

3

2.5

Number of countries where the organization operates, and names of countries with either major operations or that are
specifically relevant to the sustainability issues covered in the report.

4

2.6
2.7

Nature of ownership and legal form.

3

Primary brands, products, and/or services.

4、11–12

Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures.

4、11–12Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).

2.8

Scale of the reporting organization, including:
PNumber of employees;
PNet sales (for private sector organizations) or net revenues (for public sector organizations);
PTotal capitalization broken down in terms of debt and equity (for private sector organizations); andPQuantity of products or services provided.

2.9

Significant changes during the reporting period regarding size, structure, or ownership including:PThe location of, or changes in operations, including facility openings, closings, and expansions; andPChanges in the share capital structure and other capital formation, maintenance, and alteration operations (for private sector organizations).

2.10

Awards received in the reporting period.

3
4、11–123

Not
applicable
24

3 Report Parameters
Report Profile
3.1

Reporting period (e.g., fiscal/calendar year) for information provided.

1

3.2

Date of most recent previous report (if any).

1

3.3

Reporting cycle (annual, biennial, etc.)

1

3.4

Contact point for questions regarding the report or its contents.

1

Report Scope and Boundary
3.5

Process for defining report content, including:
PDetermining materiality;
PPrioritizing topics within the report; andPIdentifying stakeholders the organization expects to use the report.

2、46

3.6

Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers).

1、4、393.7

State any specific limitations on the scope or boundary of the report.

1、4、39

3.8

Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that cansignificantly affect comparability from period to period and/or between organizations.

Not applicable

3.9

Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations
applied to the compilation of the Indicators and other information in the report.

39

3.10

Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such
re-statement (e.g., mergers/ acquisitions, change of base years/periods, nature of business, measurement methods).

—

3.11

Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.

Not applicable

GRI content index
3.12

Table identifying the location of the Standard Disclosures in the report.

41–44

Assurance
3.13

Policy and current practice with regard to seeking external assurance for the report. If not included in the assurance reportaccompanying the sustainability report, explain the scope and basis of any external assurance provided. Also explain therelationship between the reporting organization and the assurance provider(s).

2

4 Governance, Commitments, and Engagement
Governance

41

4.1

Governance structure of the organization, including committees under the highest governance body responsible for specifictasks, such as setting strategy or organizational oversight.

13

4.2

Indicate whether the Chair of the highest governance body is also an executive officer (and, if so, their function within theorganization’s management and the reasons for this arrangement).

13、14

4.3

For organizations that have a unitary board structure, state the number of members of the highest governance body that are
independent and/or non-executive members.

13

4.4

Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.

14

4.5

Linkage between compensation for members of the highest governance body, senior managers, and executives (including
departure arrangements), and the organization’s performance (including social and environmental performance).

13

4.6

Processes in place for the highest governance body to ensure conflicts of interest are avoided.

4.7

Process for determining the qualifications and expertise of the members of the highest governance body for guiding theorganization’s strategy on economic, environmental, and social topics.

13

4.8

Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental,
and social performance and the status of their implementation.

9、16、37

4.9

Procedures of the highest governance body for overseeing the organization’s identification and management of economic,
environmental, and social performance, including relevant risks and opportunities, and adherence or compliance withinternationally agreed standards, codes of conduct, and principles.

9、18、20

T&D Life Group Corporate Responsibility Report 2009

14、15

Activities inJapan only

—: No information in this report. However, this report does not cover all activities of the Group.
CORE: “Core indicator,” meaning an indicator that most stakeholders are interested in.
ADD: “Additional indicator,” meaning an indicator for a new theme or a theme important to certain parts of the organization.				

Item

Indicator

Pages inthis report

4.10

Processes for evaluating the highest governance body’s own performance, particularly with respect to economic,
environmental, and social performance.

13–14

Notes

Commitments to External Initiatives
4.11

Explanation of whether and how the precautionary approach or principle is addressed by the organization.

4.12

Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization
subscribes or endorses.

20

4.13

Memberships in associations (such as industry associations) and/or national/international advocacy organizations in which the organization:
PHas positions in governance bodies;
P Participates in projects or committees;
P Provides substantive funding beyond routine membership dues; or
P Views membership as strategic.

3

16–17、18

Stakeholder Engagement
4.14

List of stakeholder groups engaged by the organization.

2

4.15

Basis for identification and selection of stakeholders with whom to engage.

—

4.16

Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group.

4.17

Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded
to those key topics and concerns, including through its reporting.

19、20、4623

5 Management Approach and Performance Indicators
Economic
21–22

Disclosure on Management Approach

aspect: Economic Performance
EC1

CORE

Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations
and other community investments, retained earnings, and payments to capital providers and governments.

21

EC2

CORE

Financial implications and other risks and opportunities for the organization’s activities due to climate change.

18

EC3

CORE

Coverage of the organization’s defined benefit plan obligations.

EC4

CORE

Significant financial assistance received from government.

—
Not applicableaspect: Market Presence				
EC5

ADD

Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation.

EC6

CORE

Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation.

—

EC7

CORE

Procedures for local hiring and proportion of senior management hired from the local community at locations of significant operation.

——

aspect: Indirect Economic Impacts
EC8

CORE

Development and impact of infrastructure investments and services provided primarily for public benefit through commercial,
in-kind, or pro bono engagement.

EC9

ADD

Understanding and describing significant indirect economic impacts, including the extent of impacts.

34–36
—

Environmental
37–40

Disclosure on Management Approach

aspect: Materials
EN1

CORE

Materials used by weight or volume.

EN2

CORE

Percentage of materials used that are recycled input materials.

39、40
Not applicableaspect: Energy
EN3

CORE

Direct energy consumption by primary energy source.

EN4

CORE

Indirect energy consumption by primary source.

EN5

ADD

Energy saved due to conservation and efficiency improvements.

40

EN6

ADD

Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy
requirements as a result of these initiatives.

40

EN7

ADD

Initiatives to reduce indirect energy consumption and reductions achieved.

37

—
39、40

aspect: Water
EN8

CORE

Total water withdrawal by source.

EN9

ADD

Water sources significantly affected by withdrawal of water.

Not applicable

EN10

ADD

Percentage and total volume of water recycled and reused.

39

39

aspect: Biodiversity
EN11

CORE

Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value
outside protected areas.

Not applicable

EN12

CORE

Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of highbiodiversity value outside protected areas.

Not applicable

EN13

ADD

Habitats protected or restored.

Not applicable

EN14

ADD

Strategies, current actions, and future plans for managing impacts on biodiversity.

ADD

Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, bylevel of extinction risk.

EN15—
Not applicableaspect: Emisions, Effluents, and Waste
EN16

CORE

Total direct and indirect greenhouse gas emissions by weight.

39

EN17

CORE

Other relevant indirect greenhouse gas emissions by weight.

Not applicable

EN18

CORE

Initiatives to reduce greenhouse gas emissions and reductions achieved.

37、39

T&D Life Group Corporate Responsibility Report 200942

T&D Life Group Corporate Responsibility Report 2009 G3 GRI Content Index				Item

Indicator

Pages inthis report

EN19

CORE

Emissions of ozone-depleting substances by weight.

Not applicable

EN20

CORE

NO, SO, and other significant air emissions by type and weight.

Not applicable

EN21

CORE

Total water discharge by quality and destination.

Not applicable

EN22

CORE

Total weight of waste by type and disposal method.

EN23

CORE

Total number and volume of significant spills.

Not applicable

EN24

ADD

Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention
Annex I, II, III, and VIII, and percentage of transported waste shipped internationally.

Not applicable

EN25

ADD

Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by thereporting organization’s discharges of water and runoff.

Not applicable

39

aspect: Products and Services
EN26

CORE

Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.

Not applicable

EN27

CORE

Percentage of products sold and their packaging materials that are reclaimed by category.

Not applicableaspect: Compliance
EN28

CORE

Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with environmental laws
and regulations.

Not applicableaspect: Transport
EN29

ADD

Significant environmental impacts of transporting products and other goods and materials used for the organization’s
operations, and transporting members of the workforce.

—

aspect: Overall
EN30

ADD

Total environmental protection expenditures and investments by type.

—

Labor Practices and Decent Work
Disclosure on Management Approach

31–33

aspect: Employment
LA1

CORE

Total workforce by employment type, employment contract, and region.

31

LA2

CORE

Total number and rate of employee turnover by age group, gender, and region.

31

LA3

ADD

Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations.

—

aspect: Labor/Management Relations
LA4

CORE

Percentage of employees covered by collective bargaining agreements.

—

LA5

CORE

Minimum notice period(s) regarding operational changes, including whether it is specified in collective agreements.

—

aspect: Occupational Health and Safety
LA6

ADD

Percentage of total workforce represented in formal joint management-worker health and safety committees that help
monitor and advise on occupational health and safety programs.

—

LA7

CORE

Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region.

—

LA8

CORE

Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families,
or community members regarding serious diseases.

33

LA9

ADD

Health and safety topics covered in formal agreements with trade unions.

33

aspect: Training and Education
LA10

CORE

Average hours of training per year per employee by employee category.

LA11

ADD

Programs for skills management and lifelong learning that support the continued employability of employees and assist themin managing career endings.

LA12

ADD

Percentage of employees receiving regular performance and career development reviews.

—
29、31
—

aspect: Diversity and Equal Opportunity
LA13

CORE

Composition of governance bodies and breakdown of employees per category according to gender, age group, minority
group membership, and other indicators of diversity.

31

LA14

CORE

Ratio of basic salary of men to women by employee category.

—

Human Rights
Disclosure on Management Approach31

aspect: Investment and Procurement Practices
Percentage and total number of significant investment agreements that include human rights clauses or that haveundergone human rights screening.

Not applicable

CORE

Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken.

Not applicable

ADD

Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant tooperations, including the percentage of employees trained.

HR1

CORE

HR2
HR3

31

aspect: Non-Discrimination
HR4

CORE

Total number of incidents of discrimination and actions taken.

Not applicableaspect: Freedom of Association and Collective Bargaining
HR5

CORE

Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant
risk, and actions taken to support these rights.

Not applicableaspect: Child Labor
HR6

CORE

Operations identified as having significant risk for incidents of child labor, and measures taken to contribute to the elimination of child labor.

Not applicableaspect: Forced and Compulsory Labor
HR7

43

CORE

Operations identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to theelimination of forced or compulsory labor.

T&D Life Group Corporate Responsibility Report 2009

Not applicable

Notes

Indicator

Pages inthis report

Percentage of security personnel trained in the organization’s policies or procedures concerning aspects of human rightsthat are relevant to operations.

Not applicable

Item

Notes

aspect: Security Practices
HR8

ADD

aspect: Indigenous Rights
HR9

ADD

Not applicable

Total number of incidents of violations involving rights of indigenous people and actions taken.

Society
23–30

Disclosure on Management Approach

aspect: Community
SO1

CORE

Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations oncommunities, including entering, operating, and exiting.

—aspect: Corruption
SO2

CORE

Percentage and total number of business units analyzed for risks related to corruption.

SO3

CORE

Percentage of employees trained in organization’s anti-corruption policies and procedures.

SO4

CORE

Actions taken in response to incidents of corruption.

18
17
Not applicableaspect: Public Policy
SO5

CORE

Public policy positions and participation in public policy development and lobbying.

—

SO6

ADD

Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country.

—

aspect: Anti-Competitive Behavior
SO7

ADD

Total number of legal actions for anticompetitive behavior, anti-trust, and monopoly practices and their outcomes.

Not applicableaspect: Compliance
SO8

CORE

Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with laws and regulations.

Not applicable

Product Responsibility
23–30

Disclosure on Management Approach

aspect: Customer Health and Safety				
PR1

CORE

PR2

ADD

Life cycle stages in which health and safety impacts of products and services are assessed for improvement, andpercentage of significant products and services categories subject to such procedures.
Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts ofproducts and services during their life cycle, by type of outcomes.

23–30
—

aspect: Product and Service Labeling				
PR3

CORE

PR4

ADD

PR5

ADD

Type of product and service information required by procedures, and percentage of significant products and services subject
to such information requirements.
Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service
information and labeling, by type of outcomes.
Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.

——
19、24、25、26

aspect: Marketing Communications				
PR6

CORE

PR7

ADD

Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including
advertising, promotion, and sponsorship.
Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications,
including advertising, promotion, and sponsorship by type of outcomes.

27、28
Not applicableaspect: Customar Privacy				
PR8

ADD

Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.

27

aspect: Compliance				
PR9

CORE

Monetary value of significant fines for noncompliance with laws and regulations concerning the provision and use of
products and services.

Not applicable

Financial Services Sector Specific Disclosure on Managaement Approach
FS1

CORE

Policies with specific environmental and social components applied to business lines.

9、16、37

FS2

CORE

Procedures for assessing and screening environmental and social risks in business lines.

18

FS3

CORE

Processes for monitoring clients’ implementation of and compliance with environmental and social requirements included inagreements or transactions.

—

FS4

CORE

Process(es) for improving staff competency to implement the environmental and social policies and procedures as applied
to business lines.

16、17、29、
31、38、46

FS5

CORE

Interactions with clients/investees/business partners regarding environmental and social risks and opportunities.

FS6

CORE

Percentage of the portfolio for business lines by specific region, size (e.g. micro/SME/large) and by sector.

FS7

CORE

FS8

CORE

19、23
11–12

Monetary value of products and services designed to deliver a specific social benefit for each business line broken down by
purpose.
Monetary value of products and services designed to deliver a specific environmental benefit for each business line broken
down by purpose.

11–12、27
—

FS9

CORE

Coverage and frequency of audits to assess implementation of environmental and social policies and risk assessment procedures.

15

FS10

CORE

Percentage and number of companies held in the institution’s portfolio with which the reporting organization has interacted
on environmental or social issues.

—

FS11

CORE

Percentage of assets subject to positive and negative environmental or social screening.

—

FS12

CORE

Voting polic(ies) applied to environmental or social issues for shares over which the reporting organization holds the right tovote shares or advises on voting.

FS13

CORE

Access points in low-populated or economically disadvantaged areas by type.

Not applicable

FS14

CORE

Initiatives to improve access to financial services for disadvantaged people.

30

FS15

CORE

Policies for the fair design and sale of financial products and services.

27

FS16

CORE

Initiatives to enhance financial literacy by type of beneficiary.

19

20

T&D Life Group Corporate Responsibility Report 200944

Third-party Opinion
Takaji Hishiyama, Principal
Center for Corporate Behavior
Formerly senior executive in Mitsubishi Oil Co.
(now Nippon Oil Co.). Studied global businessethics at Center for Business Ethics in U.S. asa Visiting Executive Scholar. Established Centerfor Corporate Behavior in Japan and is engaged
in consulting works, operation of non-profit
organizations, as well as teaching at many
institutions on ethical matters and corporatesocial responsibility. Wrote many books inthese fields including the most recent book,
Ethics, Compliance and CSR, Second Edition(Aug. 2009).
1 A positive element of the T&D Life Group’s corporate responn

sibility activities is that the Management Philosophy of value
creation through “Try & Discover” is reflected consistently in theGroup’s Management Vision of providing “the best products andservices” and also in the CSR Charter as offering “better products
and services.” The important thing is to make these values an integral part of the Group’s DNA in the form of seeing things “fromthe customer’s perspective” and “quality improvements.” I am
pleased to see, in the section titled “A Talk with the President,”
Mr. Miyato, Representative Director and President of T&D Holdings, mentions his recognition that “this basic element of corporate
responsibility has been fully shared throughout the Group lately.”With regard to customer feedback in the form of complaints, thespread of the “from the customer’s perspective” concept appears
to be paying off: Taiyo Life received fewer complaints and more
appreciation and praise in the past year, Daido Life’s customers expressed strong satisfaction with the company and T&D Financial
Life reported fewer complaints.
But I think the companies need to work more diligently and remain vigilant. Taiyo Life continues to receive a certain number ofcomplaints or expressions of dissatisfaction, and at Daido Life,the number of complaints related to claims payments is basicallyunchanged from the previous year. Risks related to nonpaymentof claims, etc. supposedly have not been completely eliminatedyet. There is also the matter of how to interpret the fact that total
complaints at Taiyo Life and Daido Life are increasing. This may
mean that customers are anxious about the effects of business improvement order issued by the Financial Services Agency, anotherlife insurer’s bankruptcy and the overall economic recession, andwanting them to be more forthcoming with information about
their disclosure criteria, policy provisions, sales through financial
institution agents, reorganization of products and riders, contract
conversion and so forth. The companies should accept customers’
complaints humbly and use them, by driving improvements, to getcustomers’ stronger trust.

2 It is said that the T&D Life Group is endeavoring to improven
information disclosure; it overflows with the energy directed toward growth and is invigorated by this energy.
This report explains business performance in previous years
appropriately. The T&D Life Group would gain more supportof stakeholders if it had touched on how the Group intends todemonstrate its characteristic enterprising spirit in near future, or
sketched out a medium-term managerial vision of how the Groupintends to enhance optimization in the face of population aging
and the declining birthrate, climate change, or changes in theindustry business environment such as more stringent rules forcalculating financial health. Those are the things that stakeholders
want to know about.
The fact that Taiyo Life is a signatory to the Principles for Responsible Investment (PRI) and makes ESG (environment, society,governance) undertakings a benchmark for investing and managing funds is praiseworthy. I would have liked to have learned ofsome examples of how Taiyo Life has applied PRI in their recent
investing.
I also read with interest the results of the employee survey conducted when the report was produced. All employees should think

45

T&D Life Group Corporate Responsibility Report 2009of their own corporate responsibility as individuals and participate
positively in improving corporate behaviors. I hope that they willshow active involvement next time through a higher survey retrieval rate for this survey.
3 The steps taken by the Group to respect human rights, such asnconducting human rights education and training, are very important. The idea that business enterprises are responsible for respecting human rights from various perspectives is taking hold on a
global scale. The time will probably come soon when companies
create a management system for human rights and apply it to all
their stakeholders—not just employees but also customers, sales
agents, business partners, and communities and society. For example, when interacting with customers, the Group will truly beable to offer better products and better services if the mindset ofrespecting customers’ human rights comes naturally. I hope that all
aspects of the Group’s activities will reflect respect for the humanrights perspective.
The Group’s employment rate for people with disabilities was
1.85 percent. This is more than the legally mandated rate of 1.8
percent, but hopefully life insurance companies supporting people
with disabilities should do more to hire such individuals. Japan
will soon ratify the Convention on the Rights of Persons with Disabilities, and the day will soon come when the lack of practicalaccommodation in the workplace will of itself be considered discrimination against the normalization concept.

4 The Revised Energy Conservation Law went into effect beginn
ning from fiscal 2009. The Japanese government has set toughmedium-term objectives and the Tokyo metropolitan government
aims to reduce greenhouse gas emissions by 25 percent by 2020
compared to levels in 2000. From fiscal 2010, mandatory emissions restrictions will be placed on large commercial enterprises,
including 1,300 office buildings, in Tokyo and more stringent cutbacks will be required once a database is compiled.
I sincerely hope that the T&D Life Group will adopt and disclose
drastic measures to cut energy use, as the targets cannot be met bysimply instituting half-hearted energy-saving measures for its offices.
5 This report would be more vigorous if it had incorporated comn
mentaries reflecting today’s social concerns to indicate the Group’s
stance on such issues.
Over the past few years, there has been extensive discussion
concerning how management oversight and auditing functions
should actually work. I would have liked to see a little bit detailed
commentary on corporate governance in this report, especially inview of the fact that T&D Holdings was the first in the industry
to switch to a joint-stock structure and because it places so much
importance on ESG (environment, society and governance). For
example, the report could have mentioned that the Group has
external directors and director-level corporate auditors whose
independence is guaranteed, or that the Group has a Board of
Corporate Auditors monitoring the corporate performance of theGroup on a consolidated basis. I hope that this report will eventually proceed to disclose principles of corporate governance.
Referring to the global economic recession, a short commentaryon business performance figures for T&D Holdings at the end of
fiscal 2008 would have been helpful.
The public also wants to know more about countermeasuresagainst the new influenza pandemic, major natural disasters andpersonal information protection. The report could have included
information about the Group’s policies for dealing with customers
and the risk management measures it has in place for ensuring thatit can continue to operate in the event of emergencies.
6 The overall layout of the report is clear and easy to understand.
n

The soft, cheerful colors also vary from item to item, which helps
improve legibility.

Establishing Connections, Fostering
Communication in the Group

3 .5

4 .16

FS4

T&D Holdings, endeavoring to be the insurance group everyone can trust, issues the T&D Life Group
Corporate Responsibility Report (formerly CSR Report) every year. This report is produced with the aimof acquainting outside stakeholders with our Group, but it is also useful internally as a mirror to help us
improve our corporate responsibility awareness.
In order to continue improving this report and enhance the Group’s corporate responsibility undertakings,
T&D Life Group executives and employees were asked to answer a questionnaire about the T&D LifeGroup CSR Report 2008.
Just as we make efforts to communicate effectively with external stakeholders, we also consider
communication within the Group important. We want to grow together with our employees, who areamong our most important stakeholders, and fulfill the Group’s public mission and social responsibility.
Questionnaire Outline

3. Age:4. Sex:(Persons)
1,500

1. Respondents:
T&D Life Group executives and employees(Conducted as an anonymous questionnaire)

1,000

2. Retrieval status:
Retrieved

Distributed

Retrieval rate

3,891

16,70023.3%

749

963 1,002

500(Questionnaire period: December 8, 2009 to March 31, 2009)

2,558

Items that made an impression/that were interesting

1. Content

0

Average 2,372

Not clear 108

2. Volume of information
Too much 1,143

（33%）

（67%）

106

0
20s
30s
40s
50s
60s
(Since this questionnaire was conducted anonymously and answers regarding age andsex were voluntary, tabulated figures do not match retrievals.)

Report as a whole
Clear 1,387

Male

1,287

Female618

Appropriate 2,698

400

600

(persons)
1,000 1,200 1,400

800

Offer of Better Products
and Services

1,311

Contributions to Regions and Societies

1,239

Feature 2: Coexistence ofSociety and the Environment

1,210

Global Environmental Protection

1,208

Not enough 17

Feature 1: To Properly Pay
Insurance Claims and Benefits

3. Group corporate responsibility activities

Very worthwhile 288
Worthwhile 2,164200

Don t know 116
Not worthwhile 24
Average 1,230

1,095

Message from the President

904

Respect for Human Rights

870

The T&D Life Group’s Outline

745

Third Party Opinion

705

Risk Management654(Lists the 10 items mentioned by the largest number of respondents)

Comments and requests received

Our response

The Message from the President was good. Please expand this more.

In the 2009 Report, the president’s message was in the form of a conversation
with Ms. Mariko Kawaguchi talking with the president as a third party, in an
attempt to make the message feel more familiar and more accessible.

The Third Party Opinion should continue offering frank views. Third party views touch on issues
that employees don’t pay much attention to, so that’s useful for making the Group better.

Mr. Takaji Hishiyama offered frank comments about the Group’s
corporate responsibility from an objective viewpoint.

We should take steps to communicate to a broader audience our desire to contribute toeconomic growth and a better society through our main business of life insurance business.
This report gave me a good idea of our Group’s initiatives, so I’d like to think of what I can do too.
Information about what other companies in the Group are doing to improve their work has given
me hints about what I can do in my own job.

The report made an effort to describe the Group’s initiatives in
the life insurance business and other areas straightforwardly
and in detail. But there are still many areas that can be
improved, and we hope to hear frank views and requests in the
future too.

Reading sample customer feedback made me feel that I wanted to hear more from customers.
Hearing how employees from other Group companies are working hard to boost their potential
resonated with me, and it made me feel that I want to encourage them.
I wasn’t that familiar with the word corporate responsibility before, but the Report helped meunderstand what it means and the Group’s approach to corporate responsibility activities, so it
was a chance for me to think about this.
The Report contains a lot of words imported from English that are hard to understand.

We aimed to present lively employee interviews so that as many
people as possible can identify with the interviewees.
Explanations of terms related to corporate responsibility may befound at the bottom of the pages where those terms appear(only for the Japanese version of the Report).

T&D Life Group Corporate Responsibility Report 200946

1-2-3 Kaigan, Minato-ku, Tokyo 105-0022, Japan
http : //www.td-holdings.co.jp/e/E-mail : csr@td-holdings.co.jp

T&D Holdings believes it is important to proactively use
domestic wood products in order to nurture Japanese
forests. To this end, it supports the Kizukai-undo (wooduse promotion campaign) sponsored by the Japanese
government’s Forestry Agency. This report is printed on
paper produced using domestic resources, by which thecompany contributes to increasing the amount of CO 2absorbed by cultivating Japan’s forests.

This report has been certified by non-profit organization
the Color Universal Design Organization (CUDO) as
having been designed with colors that have good
legibility.

The T&D Life Group is a member of “Team Minus 6%.”

The T&D Life Group practices
green purchasing.

This report was produced using FSC-certified paper, vegetable-oil-based ink, anda waterless printing process.