Fundamental Strategy

T&D Financial Life Insurance Company/T&D Financial Life will further promote multi-line development of products, sales channels, and sources of profit in the field of life insurance sales through independent insurance agents, including financial institutions. In this way, T&D Financial Life seeks to increase corporate value by generating stable profits.

T&D Financial Life is a strategic company in the T&D Life Group focusing on the OTC sales channel at financial institutions and other agents*.

Insurance sales through the OTC sales channel at financial institutions and other agents are expected to grow in the future. Accordingly, the company aims to achieve sustained growth by expanding the OTC sales channel at financial institutions and other agents, and providing competitive products.

Currently, under the two-year Medium-term Management Plan running from April 2014 to March 2016, the company is undertaking multi-line layout of products through the development and introduction of a single premium savings-type product that differentiate in benefits, etc., and a level premium protection-type product based on customer segments. The company is also pushing ahead with multi-line development of sales channels by expanding the numbers of financial institutions and other agents, and developing insurance shop agents. In this way, T&D Financial Life seeks to enhance its business model to ensure that it can generate stable profits.

  • * The OTC sales channel at financial institutions and other agents collectively refers to the OTC sales channel at financial institutions, including banks and securities firms, and the insurance shop agent channel.

Business Model

Figure: Business Model

Strategies to Strengthen Business Model Capabilities for Generating Stable Profits

Figure: Strategies to Strengthen Business Model Capabilities for Generating Stable Profits

Delivering Competitive, Differentiated Products

Transition of Shougai Premium Series

April 2010 Sales release of Shougai Premium
June 2011 Sales release of Shougai Premium World
August 2011 Sales release of Shougai Premium Japan
July 2013 Sales release of Shougai Premium World 2
August 2013 Sales release of Shougai Premium Japan 2
September 2014 Sales release of Shougai Premium Japan 3 and Shougai Premium World 3
April 2015 Start of handling the “regular payment rider”

Leveraging its product development capabilities, T&D Financial Life has been supplying products offering differentiated benefits, etc., to the market.

In April 2010, T&D Financial Life developed and introduced Shougai Premium, the industry's first cash flow-type, single premium whole life insurance product based on the concept of “secure additional fund without the withdrawal from the premium reserve.” Beginning with this product, the company has developed and introduced a lineup of single premium whole life insurance products as the Shougai Premium Series by regularly revising the range of benefits in line with market needs.

At the time of launch, the market for OTC sales at financial institutions was dominated by single premium assumed interest rate-type products without market value adjustments (MVA), which were offered by the major domestic life insurers. However, the competitive environment showed some signs of shifting when other life insurers lowered their assumed interest rates and limited sales of their assumed interest rate-type products. In this environment, T&D Financial Life gradually made progress on expanding its agency network and driving product penetration in the market, achieving steady growth in sales.

At present, cash flow-type single premium whole life insurance products have been capturing a greater share of the overall market. The company is proud to have spearheaded the creation of this entirely new market category.

Also, in April 2015, the company developed the “regular payment rider,” enabling customers to regularly receive additions of a prescribed bonus policy amount in the Shougai Premium Series, as part of the product's improved convenience for customers.

As regards level premium products, in June 2014, a fixed annuities payment was added as one option to the income protection rider for the three major diseases, a characteristic feature of Kakei Ni Yasashii Shunyuhoshou. The policy scope was broadened, including by reducing the minimum monthly annuity amount from ¥150,000 to ¥100,000 when the good health discount rider is applied. Furthermore, in August 2015 the company developed and introduced Kazoku Wo Tsunagu Shushinhoken, which is a whole life insurance product that specializes in death protection and addresses a wide range of asset formation and other needs of customers in the mediumand long-term, including funding for post-retirement living expenses and children's education.

Going forward, T&D Financial Life will continue to develop and launch products that have something different to offer than other insurers' products, in order to command a strong presence in the market for OTC sales at financial institutions and other agents.

Lineup of Single Premium Products

Shougai Premium Series

  Main Features:
Shougai Premium Japan 3
[non-participating whole life insurance (accumulation rate renewing type I)]
  • Under the concept of “secure additional fund without the withdrawal from the premium reserve,” Shougai Premium Series is a cash flow-type single premium whole life insurance series that features annual additions of a prescribed bonus policy amount to the “accumulated bonus amount” throughout the insured's lifetime.
Shougai Premium World 3
[non-participating foreign exchange rate linked whole life insurance (accumulation rate renewing, multi-currency type III)]
  • Shougai Premium Japan 3 is a product for customers interested in investing in yen-denominated assets, as the annual bonus policy amount is steadily added to the accumulated bonus policy amount every year using the JGB yields as the reference rate.
  • Shougai Premium World 3 is a product for customers interested in overseas interest rates, which are higher than domestic interest rates, and in foreign currencies, as the product is based on the reference rate of its linked foreign currency (Australian dollar or U.S. dollar).
  Main Features:
Minna Ni Yasashii Shushinhoken
[non-participating whole life insurance (death benefit increasing type I)]
  • Designed to be simple and easy to understand, this single premium whole life insurance product can be purchased by customers in a wide range of age groups.

Lineup of Level Premium Products

  Main Features:
Kakei Ni Yasashii Shunyuhoshou
[non-participating income protection insurance (no surrender value type I)]
  • This is an income protection insurance product which provides either a monthly survivor annuity or a disability annuity over a fixed period in the event of the death or the total disability of the insured. One of the main features of this product is that the insurance premiums are more affordable than conventional term life insurance products.
  • Also, by applying the waiver of premium rider for the three major diseases and the income protection rider for the three major diseases, the insured is covered against loss of income in the event that he or she suffers from one of the three major diseases (designated cancer, acute myocardial infarction and cerebral stroke) that reach a particular condition.
  Main Features:
Kazoku Wo Tsunagu Shushinhoken
[non-participating special whole life insurance plan (Type 1)]
  • A level premium whole life insurance product that specializes in death protection and addresses a wide range of asset formation and other needs of customers in the medium- and long-term.
  • The customer selects from two plans: the “basic plan” that secures death benefits that exceed the premiums paid from the beginning of the contract, and the “simple plan” by which for a certain period from the beginning of the contract the death benefits are held to the total amount of premiums paid, and to which users can subscribe with a simple declaration.

Multi-line Development of Products and Channels

T&D Financial Life has enhanced its lineup of single premium products and level premium products and conducted the multi-line development of products by the aforementioned Shougai Premium Series, Kakei Ni Yasashii Shunyuhoshou, Kazoku Wo Tsunagu Shushinhoken, and Minna Ni Yasashii Shushinhoken, which was developed and introduced in December 2012.

T&D Financial Life is also pursuing the multi-line development of sales channels. From September 2012, T&D Financial Life has been working to increase the number of insurance shop agents, as well as traditional financial institutions and other agents, by leveraging the company's extensive expertise in supporting independent insurance agents. As a result of the company's efforts to develop financial institutions and other agents, and insurance shop agents, the total number of financial institutions and other agents, and insurance shop agents as of March 31, 2015, was 130 (financial institutions and other agents: 100; insurance shop agents: 30), a year on year increase from 119 (financial institutions and other agents: 97; insurance shop agents: 22), thereby making steady progress on the multi-line development of sales channels.

T&D Financial Life's Sales Network

Graph: T&D Financial Life's Sales Network

Management Targets
Fiscal 2015
 Policy amount in force
¥1,900 billion
 New policy amount
¥330 billion
Fundamental Strategy
  • A strategic company which plays a centrally role on T&D Life Group's OTC sales at financial institutions and other agents channel
  • Aiming to establish a strong brand in life insurance sales through financial institutions and other agents, the company is concentrating its management resources on bolstering product development and sales support capabilities
Business Model
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