
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
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 |
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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)] |
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Shougai Premium World 3 [non-participating foreign exchange rate linked whole life insurance (accumulation rate renewing, multi-currency type III)] |
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Main Features: | |
Minna Ni Yasashii Shushinhoken [non-participating whole life insurance (death benefit increasing type I)] |
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Lineup of Level Premium Products
Main Features: | |
Kakei Ni Yasashii Shunyuhoshou [non-participating income protection insurance (no surrender value type I)] |
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Main Features: | |
Kazoku Wo Tsunagu Shushinhoken [non-participating special whole life insurance plan (Type 1)] |
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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