Note: This document has been translated from the Japanese original for reference purposes only. In the eventof any discrepancy between this translated document and the Japanese original, the original shall prevail.

June 14, 2024
Mitsui Sumitomo Insurance Co., Ltd.
Progress of Business Improvement Plan
Mitsui Sumitomo Insurance Co., Ltd. (President: Shinichiro Funabiki), a member of the MS&AD Insurance Group,
has been implementing specific improvement measures in accordance with the business improvement plan reported
to Financial Services Agency on February 29, 2024. Today, we submitted its first progress report to Financial
Services Agency.
In order to steadily implement the business improvement plan and rebuild our business model, we is revisiting
Mission, Vision and Values (hereinafter, “Group MVV ”), and is making efforts to realize the vision of Mediumterm management plan (2022-2025), "An innovation company that provides leadership in solving the global risks
and issues for the future."<Group MVV><Overview of Mediumterm management plan(2022-2025)>

In addition to the vision of Group MVV and Medium-term management plan, we will address the root causes ofissues identified in response to the Business Improvement Order, and will steadily implement and realize thefollowing two points in order to transform ourselves into a truly sound and internationally competitive company.
・With "customer-focused" and " compliance" at the core of all business activities, and in a fair competitiveenvironment, by enhancing the core value provided by insurance and its ability to provide risk solutions, wewill build a business model to become a company that will be selected by customers continuously and realize
sustainable growth and improvements in corporate value, as well as enhancing greater engagement among
employees, based on a global evaluation standard.
・By appropriately implementing the PDCA(Plan Do Check Action) cycle, we will build a system to promptly
grasp changes in the business environment surrounding we and the non-life insurance industry, and toconstantly review and improve our business models, management strategies, governance, compliance and risk
management, etc.

In order to ensure the implementation and realization of the above, all officers and employees will

prepare theenvironment, and carry out the “Reinventing our Business Style ” that forms the foundation of these efforts.
[Overview of “Reinventing our Business Style” under Stage 2 of Medium-term management plan (2022 -2025)]

Implementation of “HR system innovation ” to promote these “reforms” and to realize our visionEndAppendix
1. Progress of the Business Improvement Plan
As of the end of May 2024, all of the measures described in the Business Improvement Plan have been progressing
as planned. With regard to the effectiveness and penetration of each measure, partly because some issues wereidentified in the staff survey conducted in May we will continue to strengthen self-discipline and self-purification
to eliminate the root causes.
2. Progress and Issues of the main Measures(1)Toward the creation of a fair competitive environment
In order to create a fair competitive environment, we will pursue “customer-focused business operations ” and“ the original role of an insurance company ”.For our employees and agents, we will thoroughly conduct sales
activities based on customer-focused business operations and aim to enhance the level of our activities.
In order to improve the surrounding environment required for a fair competitive environment, we will reduce
our strategic equity holdings to zero by the end of march 2030, which is the end of the next medium-term
management plan. With regard to the supports for clients core business(Buying of the goods or services fromthe clients or agetns), we will ensure the effectiveness of operations by establishing appropriate implementation
standards to avoid excessive favoritism or provision of special benefits.. As for stadff secondment to our agents,
we will only allow it for the purpose of development of emplyees’ skils and strengthening the internalmanagement systems of the agents .
In addition, we will steadily promote the optimization of coinsurance operations, the establishment ofregulations and rules concerning the Antimonopoly Act, and employee and agent education.
Thorough and advanced activities based on customer-focused business management
・ In April 2024, we revised our "Customer-focused business management policy," and are prompting
understanding among employees by providing examples of specific actions based on the 5 Values of GroupMVV (Mission, Vision, Value).
・In April 2024, we revised our domestic sales policy and are thoroughly ensuring that that the sales department
evaluation system does not operate too much focusing on sales budgets. Furthermore, we redefined the futureof sales policy and are implementing activities based on customer-focused business operation.
・In April 2024, we revised our claims support policy and established a scheme for introducing repair shops toprevent the recurrence of fraudulent insurance claims. In addition, we started developing a system to prevent
fraudulent repair cost claims. Furthermore, we are working on improving our technical skills and knowledge
to properly assess repair costs, with the aim of strengthening our system for proper insurance payments.
・In April 2024, we reviewed our product development process and introduced a process where we conduct
reviews from customer-focused perspective when developing or revising products and services. Through these
efforts, we have started operations that pursue “understandablility” for our customers.
Supporting client companies in developing their systems
・In April 2024, we established and disseminated a Basic Action Guidebook for corporate sales staff in order topropose risk solutions to client companies based on their business and surrounding environment. We also
launched risk management qualifications for employees and planned and provided risk management training
for employees and agents.
・In April 2024, we disseminated Risk Management Navi (RM NAVI), a tool to improve the insurance literacyof client companies, within our company and encouraged an increase in the number of registered companies.
Furthermore, we are supporting the improvement of our customers’ insurance literacy and the installation ofrisk management systems in client companies by conducting activities such as holding risk management
seminars for client companies.
Promoting the sale of strategic equity holdings
・In order to reduce strategic equity holdings to zero by the end of March 2030, we are promoting activities toobtain approval from issuing companies to sell all of their listed shares.
・In May 2024, we clarified the definition of "Pure investment" and others in order to prevent strategic equity
holdings from being easily held as a "Pure investment.Furthermore, as part of the development of our system,we newly established a special organization for pure equity investment (the Equity Investment Team in the
Corporate Finance Department), which is independent from the sales department and is responsible for theselection of stocks.
Formulation of standards for supporting client’s core business・In March 2024, we formulated standards for supporting client’s core business to prevent the provision ofexcessive convenience and special benefits.
These standards were stipulated in the "Domestic Sales Business Manual" and the "Manual for Purchasing, etc.
(Business Support) of Products and Services Handled by Customers and Concurrent Business agent" for frontline sales staff, and operations commenced.
・In April 2024, in order to ensure the effectiveness, we started monitoring the status of compliance with thestandards by utilizing a speak-up system, etc.
Revision of secondment standards
・In April 2024, the purpose of secondment on the premise of returning back was limited to "Securing diversity
and human resources development of employees" and "Strengthening internal management system of agents"
etc. and we strictly applied the requirements for secondment (payment for secondment is higher than ourstandards, the working environment is appropriate, and the role of the seconded employee contribute to theirown skill development of human asset,).
・We will review the secondment rules based on the discussions at the Expert Committee on Structural Issues
and Competition in the Non-Life Insurance Business hosted by Financial Services Agency.
Development of rules and regulations concerning the Antimonopoly Act, Employee/agent education
・In April 2024, we revised the "Insurance Underwriting Manual Based on the Antimonopoly Act" to make iteasier to understand the items that are frequently inquired about from the front lines.
・In May 2024, we launched an e-learning course for all employees on relevant laws and regulations including
the Antimonopoly Act. In addition, we incorporated a curriculum related to the Antimonopoly Act into therank-specific training that has been conducted since April of the same year.
(2)Establishing proper business promotion system and insurance underwriting management system
We are considering new methods and strategies for sales promotion, including a major review of our approachto sales budgets and evaluation criteria, in order to change market practices and achieve sustainable growthwithin a fair competitive environment.
Starting in 2024, we have revised our sales budgets and performance evaluation criteria to be something that
our sales department staff can truly agree with. In addition, we have established new support departments forcorporate sales representatives (Corporate Market Strategy Department & Corporate Process TransformationTeam) to ensure that they can receive the necessary support.
Furthermore, in order to establish a proper insurance underwriting management system, we are working to
improve underwriting capabilities and risk literacy at we-wide level. We are building an environment andframework to enhance the risk literacy of all employees, not just those in the sales and product departments,
and we are working to enrich our learning menu.
Review of sales budgets and evaluation criteria
・In April 2024, We lowered the weight of the budget achievement rate in the sales organization evaluation
system.
・In April 2024, we revised the operation manual for the employee target management system to clearly statethat target should be established without overemphasizing the budget achievement rate, and disseminated theinformation. At the same time, we revised the personnel evaluation operation manual to clearly state that thetarget should be evaluated according to the degree of contribution to the sales organization target.
・In April 2024, we revised the work handbook for line managers to reflect the business improvement order,
and disseminated the information in the training for line managers conducted in the same month.
・In February 2024, we formulated the Employee Performance Standards for Organizational Managers basedon our work rules, incorporating "ensuring psychological safety" into the five items that line division
managers must comply with. This was disseminated during the Line General Manager and Section Manager
Training held in April.

Drastic strengthening of profitability management
・In April 2024, we introduced "future earnings" and "future earnings improvement" as indicators for evaluating
sales organizations. These indicators recognize and evaluate expected future profitability at the time ofunderwriting and its improvement effects.
・In April 2024, the Internal Audit Division established standards for conducting sampling verifications in sales
branch audits as a mechanism for ex post facto verification of the validity of the process for underwriting
products in the corporate insurance field. Sampling verifications began from the May sales branch audits.
・In April 2024, we consolidated the planning and profit management functions of each product department,
which oversees specific items, into the Product and Service Planning Department, which has the overallplanning and profit management functions for the product division.
・In April 2024, personnel exchanges between the product division and the reinsurance division were expandedwith the aim of integrating management of underwriting and reinsurance.
In addition, monitoring of the reinsurance market cycle was started to monitor trends in the reinsurance market.
・In March 2024, Risk Survey Implementation Guidelines were formulated to strengthen risk surveys forcorporate fire insurance, and a briefing session for sales staff was held in May 2024.
(3)Establishing proper legal compliance system
Our company will develop a risk management framework to ensure that our management team can fully exercise
their imagination regarding the risks inherent in our business model and management strategy, and cancomprehensively and quantitatively grasp risks to consider them broadly when examining our business modeland management strategy.
Additionally, by enhancing our compliance program and improving its effectiveness, we aim to boost all
employees' knowledge and sensitivity towards the risks inherent in their responsibilities. Simultaneously, we will
create an environment where employees can report to their superiors and relevant departments at the head officeor use internal reporting system without anxiety.
As a countermeasure to the three-line model, we believe it is particularly urgent to strengthen the functions of thesecond line. By securing the diversity of human resources at the second line, actively collecting opinions fromthe front line and external knowledge, and building a system to share information with top management andrelevant departments at the head office in a timely manner, we will drastically strengthen our forecasting andpredictive detection functions.
Strengthening the Compliance and Risk Management System
・At the predictive detection countermeasure meeting newly established in December 2023, we are discussing
ways to strengthen our predictive detection capabilities for conduct risk.
Discussions are ongoing. The details of the discussions are reported to the Management Committee. In
addition, the head office departments are in the process of developing evaluation models to calculate theimpact (Direct losses and damage to corporate value) of legal and conduct risks.
・In April 2024, we increased the number of female and younger employees who were transferred to second
and third lines. We also transferred employees with diverse careers between departments.
・In April 2024, we clarified the skills necessary for the second line and released a learning program necessary
for acquiring these skills.We added the status of efforts towards acquiring and demonstrating these necessary
second-line skills to the application requirements for the post-challenge system that will start in July of thesame year. We will continue to secure talented individuals with suitable skills and motivation.
・In April 2024, we increased the number of transfers from the first line to the second and third lines, andplaced young and mid-career employees with extensive experience in sales and claims departments.
Enhancing the compliance program and improving its effectiveness・In April 2024, we reviewed the compliance program to enhance its effectiveness, including education andtraining, measures for items requiring improvement.
Strengthening checks and balances on the first line
・In April 2024, we have built and started operating a system that automatically detects emails sent by sales
representatives to email addresses with domains of competitors, and provides real-time feedback to line
managers.

Clarifying the roles and responsibilities that the management expects for the second and third lines
・In April 2024, the responsibilities of the Compliance Department (second line), Corporate Risk Management
Department, and the Internal Audit Department (third line) were divided. The Compliance Department was
responsible for laws and regulations other than those in Insurance Business Act, Corporate Risk Management
Department was responsible for risk detection, and the Internal Audit Department was responsible forsharing issues related to company-wide business operations and making recommendations for improvements.
This system enabled us to address legal and conduct risks from a more multifaceted perspective.
Strengthening the Functions of the Second Line・In April 2024, we have clarified in our job regulations that the authority to determine the applicability of
employee misconduct incidents belongs to the Head of the Compliance Department's Investigation Office.
This allows for thorough and speedy information sharing, and for new legal risks that may lead to employee
misconduct incidents, the Head of the Investigation Office will make judgments while consulting withlawyers if necessary.
・In May 2024, we have established a system where the second line collects the unfiltered voices of the firstline, reports the signs of legal and conduct risks to the management team based on these collected voices.
The management then quickly identifies and evaluates the issues, and prepares to make necessary decisions
for prevention and minimization of damage.
Strengthening the Functions of the Third Line
・In March 2024, we conducted a risk assessment that serves as a premise for the FY 2024 Internal Audit Plan
based on the risk assessment conducted by the second line (Corporate Risk Management Department).
We intend to continue similar initiatives in the future.
・In April 2024, we increased the number of personnel transferred from other departments to the Internal
Audit Department. We are prompting personnel rotation with other departments and establishing a career
path which offers more opportunities for employees to learn and work in the Internal Audit Department.
・In December 2023, we established the Internal Audit Department Improvement Recommendations Team.
Since April of the same year, sample cases for on-site monitoring have been selected by three dedicatedmembers based on on-site audits in the past, information provided by second lines, and off-site monitoring
information.
Examining Monitoring Methods for agents
・In April 2024, we expanded the symptom management items in agent audits and thoroughly informed thefrist line of the items. Since July of the same year, we will be starting agent audits incorporating these items.
Since October of the same year, we will be conducting direct audits by the Compliance Department to theagents that violated these standards.
(4)Fostering sound corporate culture
We are working to reaffirm Group MVV and “customer-focused business management ” in all employees, andcultivate a“corporate culture that encourages individuals to speak up ” and a “culture in which we take on thechallenge of reforms ” while maintaining psychological safe environment.
By sending appropriate messages from top management and strengthening two-way communication, top
management will take the lead in changing itself appropriately,creating a new corporate culture.
With the aim of building a sound corporate culture, we will continue to verify the validity of measures throughinternal questionnaires and audits by the Internal Audit Department, and strive to identify any problems and takeappropriate measures according to the situation.
Initiatives led by top management
・In April 2024, we revised the Rules of organization and delegation of authority to clarify that when
exercising authority related to duties such as ”the establishment, revision or abolition of strategies andpolicies” and “the establishment, revision or abolition of policies and business processes”, we will identify
the existence of problems, assess and respond to risks accordingly.
・In April 2024, we clarified that the results of resolutions made by Board of Directors and decisions made by
the directors in charge will be included in proposals and decisions. Based on the new rules, the relevantdepartments, in cooperation with Risk Management Dept.,have begun operations to include proposals andapprovals submitted to the Management Committee.
・CEO Messages have been distributed 10 times a year. In January 2024, a "Management Message" banner
was placed in a prominent place on the top page of the internal portal, allowing users to navigate to CEO
Message page with just one click.
Other Initiatives
・In May 2024, to promote Group MVV, we formulated "Examples of OK/NG Actions" for directors anddepartment and branch managers and shared them with all employees.
・In May 2024, as part of evaluation of the Internal Audit Department's efforts to foster corporate culture by
top management, we began examining issues identified in audits from a corporate cultural perspective.
(5)Fundamental Strengthening of the Corporate Management (Governance) System
Based on evaluations and advice from external organizations, we will further strengthen the functions of theBoard of Directors and Audit & Supervisory Board.
In addition, with regard to internal audits, we will secure appropriate human resources to realize sophisticatedaudits, such as “providing advice that contributes to management strategy ” instead of “compliance audits ” or“risk-based audits ”.
We will further invigorate the exchange of personnel and career paths between the Internal Audit Department
and various other departments. Through this, we will promote the correct understanding and sharing of thesignificance and purpose of audit.
Strengthening Governance by top management
・In April 2024, we began considering the selection of a third-party organization in order to obtain an objective
evaluation from an external organization for the FY2024 evaluation of Board of Directors and improve its
effectiveness.
・In March 2024, we established and implemented a system to share the management methods of Board of
Directors, measures to strengthen the corporate governance system, and good practices among majoraffiliates in Japan and overseas through the annual monitoring of the corporate management system foroverseas entity.
Strengthening audit & supervisory board member Audit
・In April 2024, we reports regularly to audit & supervisory board member from second and third lines. In
addition, information exchange meetings were held between office of audit & supervisory board and the
Corporate Planning Department in an effort to diversify information-gathering methods of the audit &supervisory board
Strengthening second and third line defense functions
・In April 2024, officers in charge of second and third lines began visiting departments and branches toconfirm the status of fostering a " corporate culture that encourages individuals to speak up " and a "culturethat takes on the challenge of reform" on the first line.
・In April 2024, HR rotation with other departments is being strengthened to enhance the sophistication ofinternal audits. The Improvement Proposal Team at The Internal Audit Department used on-site monitoring
methods to verify detected signs.
By utilizing the on-site monitoring methods, they began working to promptly provide information to top
management and head office departments, and make improvement proposals.
Ensuring the appropriateness of responsible stass such as Executive officers, General managers,
・In May 2024, the Compliance Department. started hearings to staff assisting their General Manager (fieldmanager).
In addition, a roundtable meeting was held with those in charge of compliance at each department and branch
to actively gather information on issues, notices, and questions arising in the sales division.
Improvement of the Management control system by the Holding company
・In April 2024, in the group management supervision contracts we began to specify “Other required topics inGroup operation ” that we reports to the holding company. As a result, we began to include “Important
Management Matters Related to Conduct Risk ” and“ Important Management Matters Related to Changes inthe External Environment ” as the reporting items.
・In May 2024, from the perspective of strengthening the governance of the Holding Company,
dedicated
executives of the holdings company began to participate as observers in our Management Committee. We
will continue to work to build a system for the Holding Company to conduct appropriate management of its
operating companies.
End