Japan CO-OP Insurance (Kyosai)
Consumers' Co-operative Federation

Year Ended
March 20, 2021

ANNUAL REPORT

2021

Year Ended
March 20, 2021

Expand the circle of "Tasukeai"
to everybody
We cherish the heart of mutual cooperation when someone isin trouble (=Tasukeai). We will continue to expand the circle of“Tasukeai” to support more and more people.

CONTENTS
01
1. Visions of CO•OP Kyosai02
2. Message from the President
03
3. CO•OP Kyosai Long-term Vision 2030
05
4. Topics of FY2020
06
5. Financial Highlights
6. Business Overview of CO•OP Kyosai Products for Fiscal 2020 07
09
7. Outline of CO•OP Kyosai
11
8. Types of CO•OP Kyosai Products
12
9. Payment of Claims
13
10. Management System
15
11. Co-op Action Plan for SDGs
16
12. Activities
19
13. Balance Sheet
20
14. Income Statement
21
15. Management Index

The ofﬁcial name of our organization is Japan CO-OP Insurance (Kyosai) Consumersʼ Co-operative Federation,commonly abbreviated as CO•OP Kyosai.
Year Ended March 20,2021 (Fiscal Year 2020: March 21, 2020- March 20, 2021)

1

Visions of CO･OP Kyosai
Through CO•OP Kyosai products and the mutual assistance of CO-OP members,
we are aiming to help improve livelihoods of members, develop consumer co-operatives, promote the cooperative movement and enrich our society, focusing on
covering economic loss caused by various risks in membersʼ livelihoods.

We will offer co-operative insur-

We will promote communication

ance products that suit membersʼ

between members and CO-OP

needs with more reasonable pre-employees, and encourage a spirit

miums and better coverage.

of mutual aid among members.

We will enhance the social cred-

We will offer members the op-

ibility of consumer co-operatives

portunity to learn about insur-

by the stable and efficient man-ance and help them acquire theagement of the insurance and theability to select the insurance that

expansion of the insured.

suits them most.

We will strive to address the problemsof aging population with declining
birthrate, health and welfare, and contribute to society by social welfare activities, disaster activities and others.

Annual Report 2021 01

2

Message from the President

Last year, many precious lives were lost due to theof the key measures to achieve the goal is an increase inworldwide coronavirus outbreak from the beginning ofyounger generation contractors. In September 2021, we

the year. I would like to pray for the souls of the victims

started to undertake "CO-OP Student Comprehensive

and extend my deepest sympathies to those who have

Mutual Insurance" jointly with the National Federation of

suffered from the disease. The COVID-19 pandemic has

the University Co-operative Association. In the CO•OP

had a great impact on the daily lives of co-op members

Kyosai (Insurance) product “Tasukeai” Junior Course, we

and widened economic and medical disparity.

also extended the age at expiry by 10 years, raising it from

Under such circumstances, CO•OP Kyosai has taken
measures to closely support members experiencing dif-

20 years to 30 years from the contract that will expiredat the age 20 in and after September 2021.

ﬁculties and extended the grace period for the payment

The “Co-op Action Plan for SDGs” of the Japaneseof insurance premiums. In addition, treating coronavirus

Consumersʼ Co-operative Union declares “We will par-infection as an "infectious disease that is considered as

ticipate in creating a society where everyone can live

an accident" and including the case of COVID-19 pa-

with a sense of security.” This Federation has also pro-tients recuperating at home as eligible claims, we have

posed a vision to dedicate to achieve SDGs through thepaid more than 600 million yen for 14,600 cases (as of

insurance business. Grants to promote mutual support

the end of FY2020).

in communities, which marked its 10th anniversary thisThis year also marks the 10th anniversary of the Great

year, has been supporting the collaboration between

East Japan Earthquake that occurred in March 2011 andco-ops and local organizations. We will make further

the 5th anniversary of the Kumamoto Earthquake inefforts regarding the "Grants to promote mutual sup-April 2016. Since our lives are constantly exposed to theport in communities" so that the co-ops can play a more

menace of natural disasters, we need to support the af-

important role in the region.

fected areas toward reconstruction while preparing forThis pamphlet primarily introduces the efforts ofdisasters on a daily basis. We will contribute to disaster

CO•OP Kyosai in FY2020. We hope that this pamphlet

prevention and mitigation through the CO•OP Kyosai

will provide you with an opportunity to deepen yourbusiness by developing the spirit of mutual support inunderstanding of our business and activities.

the event of problems.

We continue to work on various issues with co-op

In the CO•OP Kyosai business, the number of contrac-

members nationwide and promote our business in ators for direct Insurance (kyosai) products reached 8.67

cross-organizational way in order to contribute toward

million, and those including indirect insurance (kyosai)

improving their lives. We ask for your continued under-

products exceeded 9.1 million as of the end of 2020.

standing and support regarding CO•OP Kyosai.

The total amount of collected insurance premiums exceeded 200 billion yen. The number of new contractors
and the number of holding cases have increased as well.
This is due to a combination of multiple factors such as
an increase in co-op membership entries, an increasein contract applications via the Internet, an increase innon-face-to-face document requests on the website,
and a decrease in cancellations and expirations due to
growing interest in security. We believe that all of theabove are lead by the support of member co-ops.
In the CO•OP Kyosai Long-term Vision 2030, an
increase in direct Kyosai products contractors to 10
million is set out in the business goals up to 2030. One
02 Annual Report 2021

Toshiaki Wada
President
Japan CO-OP Insurance (Kyosai)
Consumers’ Co-operative Federation

3

CO •OP Kyosai
Long-term Vision 2030
CO•OP Kyosai formulated its CO•OP Kyosai Long-term Vision 2030 as a 10-yearplan starting in 2020. Through our co-operative insurance business that draws on
feedback from co-op members, we will continue endeavoring to support co-op members and their families, and be there for them when needed by making constant improvements in pursuit of reasonable premiums, better coverage that helps them incase of emergencies, easier procedures, and reduced costs.

Main Statement
Cooperating for better future livelihoods
We aim to bring together the strengths of co-op members, promote mutual
support, be there for them and their families, and create a new form of mutual
aid and better livelihoods for the future in collaboration with co-op members.

Five Values of CO •OP Kyosai
To encourage co-op members toparticipate, shape empathy into
concrete forms, and widely disseminate the beneﬁts and beliefs of the CO•OP Kyosai
m utua l aid initiative
among co-op members
and employees.

To identify changes
in co-op membersʼ livelihoods and living environments, and to transform
ourselves as well as take onchallenges to remain capable ofhelping them.

To contribute more to livelihood
security through CO•OP Kyosai
products, especially when theenvironment surrounding
our livelihoods is severe,in particular by offering
coverage designed for
women and children.

Participationand empathy

Contribution
tolivelihoods

Response tochanges

Contribution
to localcommunities

To take on greaterroles in local communities by collaboratingwith national or local
govenment and other organizations to protect the livelihoods of local co-op members
amid decreasing populations.

Stable business operation for future livelihoods
To be better equipped to address changes as we face intensifying competitionin the insurance industry, industry transformation driven by IT, and the negative
pressure exerted by decreasing populations, aging, and declining birth rate.

Annual Report 2021 03

Business Goals for 2030

1

2

3

To expand the circle ofdirect policyholders ofCO•OP Kyosai products
to 10 million with theaim of ensuring a lifetimeof security for more coop members.

To increase the payment
of insurance claims by 30
billion yen (equivalent topayment rate of over 7%)
to contribute to the livelihoods of co-op members bydirectly providing them withgreater amounts of beneﬁts.

To secure a surplus rate of
18% and a solvency margin
ratio of at least 280% on
an economic value basis tomake CO•OP Kyosai policyholders feel reassured.

What We Aim to Be in 2030 andSeven Areas of Focus to Achieve our Ideals
To be capable of providing lifelong insurance starting before birth throughour mutual aid scheme(Focus on product development)

To be the kind of mutual aid schemethat co-op members can feel proud of(Focus on encouraging participation of
co-op members and spreading empathy)

To play greater social roles and help
co-operative businesses display theircomprehensive strengths(Focus on expanding roles as a businessand collaborating with other co-ops)

To have an expanding circle ofmutual aid(Focus on promotional activities andjoint businesses)

To offer convenient, simple, andreliable procedural steps for policyholders(Focus on building a clerical structure
distinct to CO•OP Kyosai)

To ensure that employees leadenjoyable and fulfilling work lives(Focus on the development of humanresources that sustain CO•OP Kyosai)

To run stable business operations(Focus on business operations)04 Annual Report 2021

4

Topics of FY2020

1. Response to the novel coronavirus crisis
Dedicated to continuously paying insurance without interrupting important securities even during the COVID-19 pandemic.
Considering coronavirus infection as an accident, we pay insurance for it.
We have included coronavirus infection in the eligible claims for payment by treating
it as an “infectious disease that is considered as an accident”. In FY2020, we paid morethan 613 million yen for 14,639 insurance claims related to coronavirus infection.

We have extended the grace period for payment of insurance premiums
to closely support contractors whose lives are more adversely affected.
As a special measure, the grace period for payment of insurance premiums has been
extended for contractors who have difﬁculty in paying the premiums due to the effectsof the COVID-19 pandemic.

We have realized stable operations even during the coronavirus crisis by the use of IT and multi-pointbases, which had been put in place in anticipation of large-scale disasters
In CO•OP Kyosai, we have raised the management priority to avoid delays of works directly related to the contractor
services, such as insurance payments, contract maintenance, and call centers. We introduced a new insurance payment
system that allows automatic judgments for selecting part of the required documents when accepting insurance claims,
which had required a great deal of knowledge in the past, and an automatic assessment system to examine the submitted
documents claiming insurance through the system rather than by an actual person (both released in 2018). In addition, we
have been preparing the BCP (Business Continuity Plan) by establishing multiple bases for paying insurance continuously
even in the event of a large-scale disaster, which occur anytime in Japan. As a result, we were able to continue stable operations for insurance payments even during the COVID-19 pandemic.

“Healthcare Worker Support Project”
Continuing from last year, we carried out the donation project in FY2021 with the aim ofdelivering the support received from nationwide contractors to medical professionals.
This project makes donations to the Japanese Health and Welfare Co-operative Federation according to the number of user registrations for CO•OP Kyosai contractors on the
web service “CO•OP Kyosai my page” or the number of speciﬁc procedures conducted on
the “CO•OP Kyosai my page”. The donated amount reached 13,692,500 yen through thecooperation of 136,925 contractors, and was given to help medical professionals whoare struggling day and night.

2. New release of CO-OP Student Comprehensive Mutual Insurance

to comprehensively support student lives

CO•OP Kyosai started to undertake the “CO-OP Student Comprehensive Mutual Insurance”
from September 1, 2021 jointly with the National Federation of the University Co-operative
Association in response to calls for affordable and fulﬁlling insurance coverage for students.
The insurance will start in April 2022.
By jointly undertaking the student comprehensive mutual insurance that had been treatedby the university co-ops, we have widened the insurance coverage so that students of university/college and vocational school which do not have a university co-op (18 years old andover and under 35 years old) can apply the insurance after joining the local co-op members.
In cooperation with the university co-ops, CO•OP Kyosai provides a wider range of support tostudents who are suffering from the coronavirus crisis, not only with regard to insurance coverage for injury and illness, but also mental care and support to continue their academic career.
Annual Report 2021 05

5

Financial Highlights
JPY
Million＊1

Fiscal 2019 and 2020

USD
Million＊2

2019

2020

2020

Ordinary income¥230,788¥238,452＄2,185

Ordinary expenses¥180,842¥184,579＄1,691

Ordinary surplus¥49,946¥53,873＄493¥9,781¥11,851＄108

Total assets (= Total Capital)¥452,014¥492,945＄4,518

Total liabilities¥302,582¥329,369＄3,018

Total Net Assets¥149,431¥163,576＄1,499Number of policies total

8,928,956

9,109,701-

Number of policies

8,500,502

8,678,218-

Total amount of insurance in force(CO･OP Kyosai products only)¥12,589¥12,852＄117

Solvency margin (%)

1417.0%1539.2%

1539.2%

Net surplus(CO･OP Kyosai products only)＊ 1. Yen amounts are rounded down to the nearest ¥1 million.
＊ 2. U.S. dollar amaunts are converted, for convenience only, at \109.10=US $1.00 (as of March 19,2021)

Numbers of total policies(thousand people)(¥ billion)

12,00012,00018,00018,000

8,521
8,521

8,675
8,675

8,801
8,801

8,928
8,928

12,00012,000

4,000
4,000

6,000
6,000

2016
2016

2017
2017

2018
2018

2019
2019

2020
2020
(Fiscal year)

06 Annual Report 2021

(CO•OP Kyosai products total)

9,109
9,109

8,000
8,000

00

Total amount of
insurance in force

00

12,299
11,967
11,967 12,299

12,58912,436
12,436 12,589

2016
2016

2018
2018

2017
2017

2019
2019

12,852
12,852

2020
2020(Fiscal year)6

Business Overview of CO••OP Kyosai
Products for Fiscal 2020

Changes in the Number of Policyholders
In 1984, CO•OP Kyosai products Tasukeai, Term Life and Medical Insurance, started providing an insurance
coverage of one million yen for death and of 20,000 yen for inpatient care for a premium equivalent to the priceof a cup of coffee, followed by Long Term Life Insurance named Ai-Plus in 2000, and Zutto-Ai , Whole Term Life
Insurance and Whole Term Medical Insurance, in 2011. As a result of these efforts, the number of policyholders inCO•OP Kyosai products reached 8.67 million as of March 20, 2021. The spirit of mutual cooperation for supporting each otherʼs future has been carried on without change since the launch of CO•OP Kyosai.

(million people)

7.94

CO • OP Kyosai product hashelped members’ livelihoods
step by step through cooperation among members.

8.50

8.67

2019

2020 (Fiscal year)

6.99
5.38
3.27
1.47
0
1984

0.13
1990

1995

2000

2005

2010

2015

Overview of the financial resultsof the CO•OP Kyosai business is as follows:
Policyholders as of the end of Fiscal 2020 totaled 9.1 million
When broken down by product, Tasukeai policyholders increased by 41,900 from the previous year
to 5,963,690, Ai-Plus policyholders increased by 68,029 to 2,036,978, Zutto-Ai policyholders increased by 67,787 from the previous year to 677,550, CO-OP Fire Insurance policyholders increased
by 4,062 to 408,567, and CO-OP Life Insurance New-i.i. policyholders decreased by 1,033 to 22,916.
Total number of policyholders reached 9,109,701 by the end of ﬁscal year of 2020.

Policies in force totaled ¥12.85 trillion

Premiums totaled ¥200.9 billion

CO•OP Kyosai has a total of ¥12.85 trillion in policies
in force (direct products only), an increase of 2.1% fromthe previous year.

CO•OP Kyosai has a total of ¥200.9 billion in premiums (direct products only), an increase of 3.1% fromthe previous year.

1.29 million payments madeTotal claims paid amount to ¥67.4 billion

CO•OP Kyosai made a total of 1.29 million payments(direct products only), a decrease of 6% from the previous year.

CO•OP Kyosai paid a total of ¥67.4 billion for insurance claims (direct products only), a decrease of 2.1%
from the previous year.

Annual Report 2021 07

Asset Management
JPY
Millions＊1

Investment Assets

USD
Thousands＊2

2019

2020

Composition
ratio(%)

2020

Cash and deposits¥125,979¥94,806

20.9%＄868,982

Money trust ＊3¥99,876¥132,956

29.3%＄1,218,661

Negotiable deposit¥38,000¥28,500

6.3%＄261,228

Public and corporate bond

¥150,744¥196,703

43.4%＄1,802,960

¥255

¥255

0.1%

＄2,337

Foreign bond

0

0

0.0%

0

Other securities

0

0

0.0%

0

¥414,856¥453,221

100.0%＄4,154,179

Fiscal Year

Stocks

Total

Stocks0.1%
Cash anddeposits

20.9%

Public andcorporate bond

43.4%

Money trust

29.3%

Negotiable deposit

6.3%＊ 1. Yen amounts are rounded down to the nearest ¥1 million.
＊ 2. U.S. dollar amounts are converted, for convenience only, ￥109.10=US $1.00 (as of March 19,2021) and rounded down to the nearest $1 thousand.
＊ 3. Money held in trust are transferable warranty deposits.

CO•OP Kyosai Business Overview by ProductTasukeai

Fiscal Year

(Fiscal year)2018

5,916,575

2019

5,921,790
5,963,690

2020

1,905,249

2019

1,968,949

2019

2020

2,036,978

2020

2019

2020

Number of Policies

1,968,949

2,036,978Premium lncome (¥millions)¥63,697

Claims Paid (¥millions)¥22,189

2018
2019
2020

08 Annual Report 2021

5,921,790

5,963,690

Premium lncome (¥millions)¥106,799¥107,823

Claims Paid (¥millions)¥42,781¥40,014552,4702018

609,763
677,550
Fiscal Year

2019

2020

Number of Policies

609,763

677,550¥66,227

Premium lncome (¥millions)¥24,391¥26,900¥23,343

Claims Paid (¥millions)¥3,963¥4,121CO-OP

New i.i.
(Fiscal year)

Number of Policies(Fiscal year)

2018

Fiscal Year

2020

Zutto-Ai

Ai-Plus(Fiscal year)

2019

Fire Insurance
24,84623,94922,916(Fiscal year)2018402,3722019

404,505

2020

408,567

7

Outline of CO･OP Kyosai

About consumer cooperatives (Co-ops)
Consumer cooperatives (Co-ops) are non-proﬁt cooperative organizations jointly owned byconsumers for their mutual benefit, and are established pursuant to the Consumer Cooperatives Act. Consumers provide capital to become a member of a co-op and participate in thedecision-making and management of the organization with the aim of achieving a better life.
Co-ops engage in a wide range of activities including supplying merchandise through delivery
and at stores; offering mutual aid, medical care, and welfare services; hosting mutual support
programs among members; and providing educational programs on everyday life.

CO •OP Kyosai, Co-op and JCCU
Our organization is a federation of
151 consumer cooperative societies(as of March 20,2021) from acrossthe nation. Although each member
Co-op is an independent legal entity, each provides CO•OP Kyosai (Insurance) Products to its members
in cooperation with the federation.
CO•OP Kyosai was established totake over and specialize in all mutual insurance businesses previously
conducted by our member Co-ops.

Co-op members

Member co-ops
Regional Co-ops, Co-op Associations etc.
Supplying products, promoting and supporting social activities etc.

CO • OP Kyosai

Japan CO•OP Kyosai (Insurance)
Consumers' Co-operative Federation

JCCU

Japanese Consumersʼ Co-operative Union● Co-operative Insurance business● Product Business: Development and Distribution● Reconstruction from disaster,● Welfare, Environment, Reconstruction from● Promotion of Life-Planning Activities

support for member co-ops● Support for social activities

Roles of Member Co-ops andCO •OP Kyosai
CO•OP Kyosai works to enhance our relationship withmember Co-ops by fulﬁlling the requirements of our speciﬁed role and acting cooperatively to achieve our common
goals.

Member Co-op”Window for CO•OP Kyosai”
The main business of member Co-ops
of CO•OP Kyosai is retail (providing
home delivery service and operating
store). Each member Co-op acts as aservice window for the subscription
procedure and also provides information
on CO•OP Kyosai products. In addition,
each member Co-op works to support
its members by offering insurance products responding to a range of needs.

● Catalog businessdisaster, Support for member co-ops● Social Roles as a Consumersʼ Organization

Co-op members, Policyholders
Window for thesubscription
procedure

Member Co-ops

Contract ofCO•OP Kyosai products

Cooperative
businessCO • OP Kyosai

CO•OP Kyosai
CO • OP Kyosai (Japan
Consumersʼ Co-operative Federation )(Insurance)“ CO•OP Kyosai developing products in response to theneeds of its members and others”
As well as developing co-operative insurance products,
the federation receives premiums, undertakes procedures
related to the payment of insurance claims and provides
administrative support services to member Co-ops. It also
provides consulting services and responds to complaints.
*Each of the three federations of consumer cooperative societies which share responsibilities as a contract underwriter
has a dual role as member Co-op and federation of CO•OP
Kyosai Products.

Annual Report 2021 09

Structure of
CO •OP Kyosai

Executive
Ofﬁcerin charge of
University

University Planning Div.
DX Promotion Div.

(as of end of August, 2021)
Standing
Directorin charge ofpromotion,
operation,
university,and DX

Policy Administration Planning Div.
Executive
Ofﬁcerin charge ofOperation and
DX promotion

Policy Administration Div.
Operation
Dept.

Claims Planning Div.
Claims Handling 1st Div.
Claims Handling 2nd Div.
West Japan Claims Handling Center
Call Center Management Div.
Education and Learning Div.
Promotion Planning Div.

Board ofAuditors
Secretariat ofAuditors

Store Promotion Div.
Promotion Management of Co-op Tohoku Div.
Miyagi Promotion Div.
Iwate Promotion Div.
Sales promotion
Dept.

President andManaging
Director

Aomori Promotion Div.
Hokkaido and Tohoku Area Promotion Div.
Central Area Promotion Div.
Kansai Area Promotion Div.
Chusikoku Area Promotion Div.
Kyusyu Area Promotion Div.

Vice President

Publicity Planning Div.
Members Support Div.

President Staff

Internal Auditing Div.
Public Relations Div.
Management Planning Div.
Joint
Management
Dept.

I and I Service Ltd.
(Subsidiary Company)
Operation Dept.

Risk Management and Internal Control Div.
Legal Div.
Member Satisfaction Promotion Div.
Member Participation Promotion Div.

Standing Director
in charge ofdevelopment,
administration andjoint management

Development Management Div.
Product Development Div.
Development
Dept.

Actuarial Div.
Information Systems Div.
IT Planning Div.
Web System Development Div.
Security business Div.
Accounting Div.

Administrative
Dept.

Asset Management Div.
General Affairs Div.
Human Resource and Planning Div.

10 Annual Report 2021

8

Types of CO•OP Kyosai Products

CO•OP Kyosai Product

CO•OP Kyosai ProductTerm Life and Medical Insurance(Comprehensive Type)Long Term Life Insurance

Tasukeai

Ai-PlusThis insurance provides comprehensive coverage for outpatient care due to accident, hospitalization, surgery, death,disability, death of families of the insured, and damage to residences caused by ﬁre or other perils. It is designed to meet
the Co-op membersʼ demands for coverage that is essential
to their daily lives at a reasonable premium.
There are four plans; plan for children, plan for women, planfor medical coverage and plan for both medical and deathcoverage.

This insurance simply provides coverage for death, which can
add special coverages for cancer, hospitalization, and surgeryof the insured. The maximum sum insured is ¥30 million indeath beneﬁts at a reasonable premium. Added coverage isavailable by combining Ai-Plus with Tasukeai . The contract
term is 10 years and the premium varies according to the age
and sex of the insured.
Coverage may be extended until the member reaches the ageof 85.

CO•OP Kyosai Product

CO•OP Kyosai ProductZutto-Ai

Whole Term Life Insurance/
Whole Term Medical InsuranceThis insurance provides coverage for lifetime hospitalization,
surgery and death.
There are 2 types. One is a Whole Term Life Insurance which
covers lifetime death. The other is a Whole Term Medical Insurance which covers lifetime hospitalization and surgery.
CO•OP Kyosai Product

CO-OP Student
Comprehensive
Mutual Insurance
Insurance for university/college students and vocational
school students. Preparation not only for unexpected medical
expenses, but also for expenses necessary to continue theiracademic pursuits in case anything happens to their guardians.

Ai-Plus Platinum 85
Platinum 85 , launched in September 2017, is an insurance

product available for people aged 65 to 70, continuously
covering inpatient treatment and death until the age of 85. Its
coverage does not change from the time of contract to its expiration. Optional coverage for medical operations and death
can also be added as needed.

CO-OP Life Insurance*

New i.i.

Individual Long- term Life Insurance
Basic plan that provides coverage for death with the rebate
plan can be matched up with medical coverage and womenʼshealth coverage. The contract term is renewable after five
years with the option of a rebate after the ﬁve years. Coverage may be extended until the member reaches the age of 80.

CO-OP

Private car
mutual insurance*

This insurance provides coverage against damaged residences
caused by a wide range of perils including ﬁre, lightning, explosion, aircraft or vehicle crashes into residences, windstorm
and ﬂood, ﬂooding from a third party residence, unexpected
damages from a third party and earthquakes etc.

Reliable compensation to support a contractorʼs car life.

Fire Insurance** These products are afﬁliated with Kokumin Kyosai co-op (National Federation of Workers and Consumers Kyosai Cooperatives) (former Zenrosai).

Direct and Indirect Insurance Products Offered
CO•OP Kyosai offers direct and indirect insurance products. In direct insurance contracts, CO•OP Kyosai as a contract
underwriter is responsible for collecting insurance premiums and paying insurance benefits. We offer five direct insurance products : CO•OP Kyosai Product Tasukeai , CO•OP Kyosai Product Ai-Plus , CO•OP Kyosai Product Zutto-Ai(Whole Term Life Insurance and Whole Term Medical Insurance ) and CO-OP Student Comprehensive Mutual Insurance .
CO•OP Kyosai also provides indirect insurance products in the areas beyond the coverage of its direct insurance products, in alliance with Kokumin Kyosai co-op＊1, property and casualty insurance ﬁrms, etc.
＊1. In CO•OP Kyosai contracts, each contract underwriter is individually responsible for insurance coverage according to thescope of its underwriting, instead of sharing responsibility.
Annual Report 2021 11

9Payment of Claims
Payment of Claims
Payment of claims, excluding that for CO-OP Fire Insurance, New i.i. and Private car mutual insurance ismade by CO•OP Kyosai via member Co-ops or the CO•OP Kyosai Center (Payment of claims for CO-OP
Fire Insurance, New i.i. and Private car mutual insurance is made by Kokumin Kyosai co-op). Upon receivinga claim request, we check the contract details, ask the policyholder for details about the request and thensend necessary materials. CO•OP Kyosai values swift and efﬁcient payment procedures from the viewpoint of policyholders. For example, basic information is printed on documents for claims in advance, andsome procedures are simpliﬁed depending on the claim detail and amount.
CO•OP Kyosai shortens the time from reception of a claim request to payment in order to enhance policyholderʼs satisfaction.

Flow of Claims

CO•OP Kyosai
Center (Call Center)

Reporting Occurrences
Sending out Documents for Claims
Sending out Documents for Claims
Policyholder(Beneficiary)

Payment and Sending out Notice of Payment*This ﬂowchart shows a case when a policyholder contacts Call Center.

CO•OP Kyosai(Depts. related to
Claim Payment)

Relief Money to Victims of Devastating Disasters
In CO•OP Kyosai plans, Tasukeai , Ai-Plus, Zutto-Ai and i.i. policyholders receive Relief Money in accordance with the CO•OP Kyosai Regulations on Devastating Disaster Relief Money.
These regulations were made with the aim of providing a token of our sympathy to victims of devastating
disasters. CO•OP Kyosai offers special assistance in accordance with the magnitude of natural disaster. In
the event of a devastating disaster, CO•OP Kyosai ensures a certain amount of payment swiftly so that it
could alleviate a burden on a policyholder as much as possible.

Enclosing Origami Cranes with Documents for Claims
When sending claimants necessary documents forclaiming insurance beneﬁts, CO•OP Kyosai encloses
origami cranes made by Co-op members around thecountry. This activity originated around 1992, when
Co-op staff in charge of insurance in Nagano Prefecture began to enclose origami cranes with such documents to express their sympathy.
In the process of paying insurance beneﬁts or relief
money to victims of the Great Hanshin and Awaji
Earthquake in 1995, we enclosed origami cranes with
documents sent to them.
Since these origami cranes had received a favorable

12 Annual Report 2021

reaction from many recipients, this activity was expanded nationwide. While many volunteers currently
participate in making origami cranes at Co-ops aroundthe country, some recipients of origami cranes in turnsend us origami cranes of their own making, resulting
in a growing circle of people connected to each otherwith origami cranes. Moreover, many respondents tothe questionnaire enclosed with the announcementof insurance beneﬁt payment express their appreciation for origami cranes. These activities have steadily
contributed to spreading
the spirit of mutual help.

10Management System
Governance Structure
CO•OP Kyosai’s Governance StructurePart-time auditors

Memberco-opsRepresentatives

GeneralMeeting

Election/appointment ofauditors

Election/
appointment of directors

Part-time
directors

Board of Directors

Audit

Board ofAuditors(Decision-making/supervision)

Selection ofrepresentative directors

Audit

Representative
Directors(Execution of operations)

The governance structure of CO•OP Kyosai

CO•OP Kyosai management committees andis composed of the General Meeting, Board ofregional block conferences in the five regional

Directors and Board of Auditors. Being a federa-

areas across Japan. The Board of Directors istion of 151 member co-ops (regional co-ops, thecomposed of permanent directors, directors

Japanese Consumersʼ Co-operative Union, andoriginally from individual co-ops, and outside

Kokumin Kyosai co-op [National Federation of

directors (professionals including researchers,

Workers and Consumers Insurance Co-opera-

lawyers, and co-op actuaries). Of these direc-

tives]), CO•OP Kyosai is basically a democratic

tors, the President and the Managing Directorbusiness model formed primarily by representa-

serve as representative directors. Execution oftives of the member co-ops.

daily operations is undertaken by the Board of

A General Meeting is held annually. Each

Permanent Directors. Board of Directors meet-

member co-op has representatives commen-

ings are held every other month. The Board ofsurate with the size of their membership. To

Auditors is composed of a permanent auditor,

complement the General Meetings, member co-part-time auditors and two outside auditors (re-opsʼ views are gathered through the regional

searcher and accountant).

Annual Report 2021 13

Risk Management System
In pursuing sound management of the mutual insurance business, CO•OP Kyosai makes
efforts to identify risks and implement proper risk management.
Risks associated with the mutual insurance business include the following; Business risks,
Project development risks and insurance underwriting risks, Asset management risks, Liquidity risks, ALM risks, Ofﬁce work risks and System risks, etc.
CO•OP Kyosai manages, monitors and controls the risks which we have. Each risk is monitored or controlled by the responsible department.

Business Operations
Based on Policyholders' Feedbacks( 1 ) Member Satisfaction Promotion Division receives complaints
and opinions by telephone
CO•OP Kyosai, when developing products and paying claims, is making improvements
based on policyholdersʼ feedbacks. In order to receive more feedbacks and reﬂect the opinions in our business, we established the consultation center in 2006, which is dedicated tohandling complains, opinions and requests.

Complaints we received at
Member Satisfaction Promotion Division in FY2020
We had 313,544 complaints
and requests in Fiscal 2020.
Viewing the opinions we received as representing the voiceof our policyholders, we are striving to improve the problems.

Inquiries
116,683

37.2%

Requests
24,003

7.7%

Thanks167,460

53.4%

Complaints
5,398

1.7%

( 2 ) Improvement efforts resulting from complaints and opinions
we receive
We have introduced the management system to unify the management of complaints andopinions we receive so that related departments can share and swiftly resolve any issues. In
addition, we report all complaints and opinions to all departments once a week.

14 Annual Report 2021

11

Co-op Action Plan for SDGs

Co-op Action Planfor

We commit to the contribution to the achievement of the Sustainable Development Goals (SDGs). Declared at the 68th Annual
General Assembly of Japanese Consumersʼ Co-operative Union.
We have been dedicating ourselves to the realization of a morehuman lifestyle and sustainable society under the “Ideal of Japanese Consumer Co-ops Movement for the 21st Century”, adopted
at the JCCU Annual General Assembly in 1997.
The SDGs which aim to leave no one behind are consistent with
our philosophy.
We declare that we will work both locally and internationally toachieve the SDGs through seven actions.

We will eliminate poverty and hunger from the world
and promote support for children.

We will expand health promotion and promote welfare services and mutual help.

We will promote gender equality
and create an inclusive society.

We will spread the use of renewable energy and promote Global
Warming Countermeasures.

We will participate in creating a society
where everyone can live with a sense of
security.

We will promote activities toeliminate nuclear weapons andto achieve the world peace.

We will continue to review and improve
our products and lifestyle for a sustainableproduction and consumption.

Annual Report 2021 1512

Activities

Life-Planning Activities
Life-Planning activities enable Co-op members to learn
about money matters in their lives. In the Workshops on Reviewing Insurance, which is a central topic, members gain thecapability to independently select insurance product thatmeets their needs.
As an integral part of Life-Planning activities, CO•OP Kyosai
is training members and Co-op staff to be Life-Plan-Advisor(LPA). Participants of LPA courses learn about life planning,
insurance, taxation and finance in comprehensive lectures
held by CO•OP Kyosai in order to become LPA. As of March
20, 2021, there are 4,644 LPAs active at member Co-ops
across Japan. Life-Planning activities have now become ﬁrmly established as Co-op activities. These activities includes
Lecture, Workshop, Workshop for children, Learning activity,
individual consulting, “Senryu”Project, and others. In ﬁscal
2020, more than 13,596 people in total participated in the activities, principally in Workshops on
Reviewing Insurance. Due to the spread of Covid-19, some of these activities were held online.

Grants to Promote Mutual Support in Communities
The Grants to Promote Mutual Support in Communities
is a grant for practical activities carried out in collaboration between co-ops and organizations other than co-ops
toward the realization of a community-based inclusive society. The subsidy started in FY2012 and reached its 10thyear in FY2021.
CO-OPs realizes better lives by listening to the voices
of CO-OP members, sympathizing with them, and taking
action with them. Having this background, the CO-OP has
great power to solve local issues and contribute to local
development by collaborating and cooperating with various organizations. Furthermore, we believe that we cancontribute to the realization of a “symbiotic society in a community.” By sharing thoughts among different organizations
and collaborating together while making the most of respective strengths, we can produce better results that cannot be
achieved individually.
In FY2020, we subsidized 37 organizations for 21.76 million yen after conducting the examination.

Health Improvement Activities
A fundamental challenge for CO•OP Kyosai activities is the improvement of the health and welfare of people. In order
to assist members and policyholders to improve their health, CO•OP Kyosai has installed automatic blood pressure
measuring devices at Co-op stores and offers free health consultations by phone.
16 Annual Report 2021

(1 ) Automatic Blood Pressure Measuring Devices Installed
CO•OP Kyosai has installed 385 automatic blood pressure measuring devices at Co-op stores throughout Japan. Since
managing blood pressure is paramount for preventing all lifestyle-related diseases, it is essential to consistently measure blood pressure on a daily basis. The devices are easy for members to use to test their blood pressure level while
shopping and utilized for them to manage their health on a daily basis.

(2) CO • OP Kyosai Health Call Center
CO •OP Kyosai offers a free phone consultation service madeavailable to Tasukeai , Ai-Plus, Zutto-Ai and New i.i. policyholders.
CO•OP Kyosai contracts specialist counsellors including doctors
and nurses from governmental corporation to give advice on health,treatment and care-giving as well as instruction on which medial
facility to use.
During Fiscal 2020, the call center ﬁelded 36,782 calls for advice.

(3) Support Project for Health Promotion
CO•OP Kyosai started its CO•OP Kyosai Support Project for
Health Promotion in Fiscal 2017. As we confront an aging population, it is crucial to build local communities where healthy seniors
can fully realize their potential. We therefore started supporting
member Co-ops to implement health promotion activities cateredmainly to their middle-aged and older members.
Using the policyholdersʼ contribution generated by accumulatinga part of the annual surplus from our mutual insurance business, we
execute the project with the aim of contributing to our policyholders, beneﬁtting our mutual insurance business, and demonstrating
our comprehensive capacity to address social challenges. Under thethemes of food life, physical exercises and social participation, ourmember Co-ops are implementing diverse efforts in view of theirlocal circumstances by cooperating with other organizations.
In Fiscal 2020, we extended ﬁnancial support totalling 143million
yen for 44 Co-ops, 47 activities.

Donation of School Bag covers
Since Fiscal 2015, as part of its social contribution activities,
CO•OP Kyosai has been donating covers for school bags (leather
backpacks) to new ﬁrst graders at elementary schools across Japanin cooperation with local municipalities.
In Fiscal 2021, we donated a total of 305,647 covers to children
newly enrolled in 5,934 elementary schools nationwide. To schools
where pupils use nylon backpacks, we donated plastic holders forteacher-parents correspondence notepads (128,230 holders to
1,548 schools nationwide).
The yellow school bag cover featuring an illustration of Co- suke, CO•OP Kyosaiʼs ofﬁcial bear character, is eye-catching and makes it easier to spot children from afar. The covers help local communities watch over their children and prevent trafﬁc accidents.
Annual Report 2021 17

International Relations
CO•OP Kyosai engages in initiatives to promote co-op activities in partnership with co-ops andmutual aid organizations overseas.

International Co-operative Alliance(ICA)

International Co-operative Mutual
Insurance Federation (ICMIF)ICA is an international organization founded in1985 by co-ops around the world. For the purposeof spreading the cooperative movement acrossthe globe, disseminating the values and principles
of co-ops, promoting international collaboration
among co-ops, and contributing to world peaceand safety, ICA makes
recommendations to international organizations,endeavors to have its opinions reflected, hosts
global conferences, and disseminates information.
It is the worldʼs largest non-governmental organization (NGO), representing more than one billion
members. CO•OP Kyosai joined ICA in 2017.

One of ICAʼs specialty organizations, ICMIF wasestablished to support the global developmentof cooperative/mutual insurance movements.
CO•OP Kyosai joined ICMIF on March 21, 2009.

Asia and Oceania Association of
ICMIF (AOA)
Established in 1984 as one of the regional associations of ICMIF, AOA supports the development of cooperative/mutual insurance movements in the Asia and Oceania region.

International Activities in Fiscal 2020
CO•OP Kyosai cooperates and aligns with overseas cooperatives and organizations that practicemutual aid, while cooperatively supporting developing countries with them. In FY2020, we actively interacted online, though there was no actual event held due to the inﬂuence of COVID-19.

ICMIF 2nd Roundtable
In April 2021, the International Cooperative and Mutual Insurance Federation (ICMIF) Roundtable (2nd) was held online.
6 organizations from 3 countries (Japan, the Philippines andAustralia) participated from the Asia/Oceania (AOA) region.
At the roundtable, executives of ICMIF members participated from all over the world, sharing their concrete efforts on
how they practice, differentiate, and promote the projects toenhance the values of cooperatives and mutual aid organizations. CO•OP Kyosai also reported on the roles we played as acooperative and social relationships in the future after experiencing the COVID-19 pandemic.

18 Annual Report 2021

ICMIF Young Leaders
Program
The Young Leaders Program,sponsored by ICMIF, was held online in May 2021, targeting young
employees of the organizations
practicing mutual aid. 2 young
employees participated from ourfederation and interacted withexecutives and other young staff
from ICMIF member organizations
in each country.

13

Balance Sheet
Fiscal 2019 and 2020
AssetsJPY¥ Millions

USD＄Thousands

＊1

＊2

2019

2020

2020

Cash and deposits¥125,979¥94,806＄868,982

Money trust¥99,876¥132,956＄1,218,661

Securities¥189,000¥225,458＄2,066,526

Reinsurance account

¥265

¥151

＄1,384

Subcontracting account¥7,423¥7,612＄69,770

Contract account

¥314

¥306

＄2,804

Other mutual insurance assets

¥143

¥186

＄1,704

Prepaid expenses

¥84

¥67

＄614

Accured income

¥173

¥166

＄1,521Other assets¥1,412¥2,512＄23,024

Fixed assets for business use¥9,183¥10,506＄96,296

Investment in affiliates etc.

¥331

¥331

＄3,033¥17,824＄163,913

Differed assets−¥17,883

Total assets¥452,014¥492,945＄4,518,285

2019

2020

2020

¥282,233¥306,166＄2,806,287

Reinsurance account

¥227

¥250

＄2,291

Subcontracting account¥4,389¥4,416＄40,476Contract account

¥0

¥0

＄0

Other mutual insurance liabilities

¥48

¥27

＄247

Accrued expenses¥2,601¥2,687＄24,628

Other liabilities¥6,597¥7,933＄72,713

Allowance¥1,674¥1,873＄17,167

Price fluctuation reserves¥4,811¥6,010＄55,087¥302,582¥329,369＄3,018,964

2019

2020

2020

¥150,160¥161,251＄1,478,010¥-728¥2,325＄21,310

Total net assets¥149,431¥163,576＄1,499,321

Total liabilities and net assets¥452,014¥492,945＄4,518,285

Differed tax assets

Liabilities
Policy reserves

Total liabilities
Net assets
Member capital
Others

−−＊1. Yen amounts are rounded down to the nearest ¥1 million.
＊2. U.S. dollar amounts are converted, for convenience only, at ¥109.10=US $1.00 (as of March 19,2021)
and rounded down to the nearest $1 thousand.

Annual Report 2021 19

14

Income Statement
Fiscal 2019 and 2020

JPY
¥ Millions

USD＄Thousands＊1

Ordinary Income

＊2

2019

2020

2020

Premium and other income¥196,343¥201,987＄1,851,393

Reversal of policy reserves¥31,850¥33,485＄306,920

Investment income¥2,073¥2,457＄22,520

¥520

¥521

＄4,775¥230,788¥238,452＄2,185,627

Other ordinary income

Total ordinary income
Ordinary Expenses

2019

2020

2020

Claims paid

¥104,069¥103,191＄945,838

Provision of policy reserves¥18,826¥21,656＄198,496

Investment expenses

¥155

¥213

＄1,952Business expenses¥57,462¥59,265＄543,217

¥327

¥251

＄2,300Total ordinary expenses¥180,842¥184,579＄1,691,833

Ordinary Surplus¥49,946¥53,873＄493,794

2019

2020

Extraordinary income

−

2020

Extraordinary loss

¥656

¥1,222＄11,200

Surplus before taxes¥49,289¥52,650＄482,584

Income taxes¥4,883¥6,277＄57,534

Income taxes-deffered¥-776¥-1,240＄-11,365

Provision of rebate reserves¥35,401¥35,762＄327,791

Net surplus¥9,781¥11,851＄108,625

¥441

¥489

＄4,482

¥7

¥4

＄36

¥356

¥315

＄2,887¥203¥177＄1,622¥10,790¥12,838＄117,671

Other ordinary expenses

Extraordinary Income or Loss

Net surplus for the period
Reversal of reserve forcatastrophe solatium
Reversal of reserve for
office system maintenance
Reversal of subscriber contribution
Unappropriated surplus
for the period−−＊1. Yen amounts are rounded down to the nearest ¥1 million.
＊2. U.S. dollar amounts are converted, for convenience only, at ¥109.10=US $1.00 (as of March 19,2021)
and rounded down to the nearest $1 thousand.

20 Annual Report 2021

15Management Index
Fiscal 2019 and 2020

JPY
¥ Millions

USD＄Thousands＊1＊2

Solvency Margin Ratio＊3

2019

2020

2020

Total solvency margin ①
Total risks ②¥208,816¥232,197＄2,128,295¥29,474¥30,170＄276,535＊4

Solvency margin ratio= ①÷
（②×1/2）
×100

Breakdown of Basic Profit

1417.0%1539.2%

2019

2020

2020

¥51,961¥58,363＄534,949

¥339

¥546

＄5,004¥45,062¥51,491＄471,961¥6,560¥6,324＄57,965

2019

2020

2020

Equity capital ①¥149,431¥163,576＄1,499,321

Contingency reserves ②¥51,932¥57,236＄524,619

Revised equity capital = ① + ②¥201,363¥220,813＄2,023,950

Total assets ③¥452,014¥492,945＄4,518,285

Basic profit＊5

Investment profit
Risk profit＊6＊6

Expense profit＊6

Equity Capital Ratio

Equity capital ratio = ① / ③

33.1%

33.2%

Revised equity capital ratio＊8

44.5%

44.8%

＊7

＊1. Yen Amounts are rounded down to the nearest ¥1 million.
＊2. U.S. dollar amounts are converted, for convenience only, at ¥109.10=US $1.00 (as of March 19,2021) and rounded down to
the nearest $1 thousand.
＊3. The solvency margin rate of CO•OP Kyosai is calculated based on the Consumer Cooperatives Act as determined by the Ministry of Health, Labor and Welfare.
Therefore, it is incommensurable with the solvency margin rate of life insurance companies and nonlife insurance companies.
According to the Ministry of Health, Labor and Welfare, the rate needs more than 200%.
＊4. The total solvency margin is limited to what can be divided in the CO•OP Kyosai business.
＊5. Deﬁnitions are as follows:
Investment proﬁt : Differential between the projected investment return (expected yield) and the actual investment return.
Mortality proﬁt : Differential between the projected insurance payment (expected mortality rate) and actual claims for payment.
Expense proﬁt : Differential between the projected operational expenses (projected operational expense ratio) and actual operation expenses.
＊6. Basic proﬁt is calculated by excluding capital gain/loss, such as sales gain or loss on marketable securities, and extraordinary
gain/loss, such as provision for contingency reserves, from recurring surplus. It is the index that shows the basic period income generated from the mutual aid business.
＊7. Equity capital ratio = Equity capital ÷ Total assets＊8. Revised equity capital ratio = Revise equity capital ÷ Total assets

Annual Report 2021 21

Year Ended
March 20, 2021

Profile of CO •OP Kyosai ( Former JCIF )NameJapan CO-OP Insurance (Kyosai) Consumers' Co-operative Federation
Former: Japan CO-OP Insurance Consumers' Co-operative Federation

Abbreviation
CO･OP Kyosai

Head office
4-1-13 Sendagaya, Shibuya-ku, Tokyo 151-0051, JAPAN

Established
November 5, 2008

Number of Member Co-ops
151 (as of March 20, 2021)

Detail of operations
CO･OP Kyosai (mutual Insurance) Business

CO･OP Kyosai is the Federation Specializing
in Mutual Insurance Businesses
Japan CO-OP Insurance (Kyosai) Consumers' Co-operative Federation wasestablished in November 5, 2008.
Up until 2008, the JCCU and member co-ops were engaged in not only mutual
insurance business, but also retail business such as operating stores and providing
home delivery services. To avoid conflict with the newly revised Co-op Law in2008, it was decided to jointly establish a new organization, CO•OP Kyosai, to
specialize in providing mutual insurance products.
In 2021, CO•OP Kyosai have changed its English name, Japan CO-OP Insurance(Kyosai) Consumers' Co-operative Federation from Japan CO-OP Insurance
Consumers' Co-operative Federation. Abbreviation was also changed at the sametime, as "CO•OP Kyosai", from JCIF. Our organization decided to use the Japaneseword "Kyosai" in our English name, which means mutual aid and especially
helping each other, for introducing unique idea of "Kyosai" internationally.

Japan CO-OP Insurance (Kyosai)
Consumers' Co-operative Federation
4-1-13 Sendagaya, Shibuya-ku,
Tokyo 151-0051, JAPANTEL : +81-3-6836-1320
FAX : +81-3-6836-1 321

https : //coopkyosai.coop