Fundamental Strategy

Daido Life was established in 1902. In the ensuing years, it has continued to work to always earn a high level of customer trust under the corporate mottos of “Customer-oriented Service” and “Stable Management.” Since the 1970s, the company has positioned as its core business the sale of partner-specific products in collaboration with tie-up groups in the SME market. Daido Life has driven the evolution of this business model, which is not easily imitated by competitors, according to changes in the times. Under a medium-term management plan running from April 2016, Daido Life will further evolve its core business and develop growth fields of both corporate and individual customers (SME owners and individual business owners), thereby increasing its business results. As a result, Daido Life will build a more solid position as the leading company in the life insurance business in the SME market.

Marketing Strategy

Daido Life employs a distinctive marketing strategy targeting the SME market.

Specifically, Daido Life forms business tie-ups with SME-related organizations and CPTA organizations to offer partner-specific products and services designed according to each organization's characteristics. These partner-specific products are utilized by member enterprises of SME-related organizations, or function as a security system to protect the corporate clients of tax accountants (TAs) and CPAs or a welfare plan for SME owners and employees.

Relationship with Tie-up Organizations

Since 1971, Daido Life has been the official underwriter of the comprehensive insurance plan, “Keieisha Ogata Sogo Hosho Seido,” provided by the National Federation of Corporate Taxpayers Associations (NFCTA, known as Hojinkai) and the Tax Payment Associations (TPA, known as Nozei-kyokai). Under this arrangement, Daido Life's in-house sales representatives and agents offer partner-specific products to member companies and individual business owners.

In 1976, Daido Life started underwriting “TKC Kigyo Boei Seido” provided by the TKC National Federation^*1, and in the 1970s, the Comprehensive Business Security Plan provided by CPTA Associations and CPTA Cooperative Associations in each region. As members of this federation or associations, TAs provide their corporate and individual business owner clients with partner-specific products as part of risk consulting services for these clients.

As shown in the diagram at the bottom left of this page, Daido Life's business model based on sales of partner-specific products through tie-up organizations has created a win-win situation for SME customers, tie-up organizations, TAs and CPAs, and Daido Life.

• *1 An organization of working accountants (accounting firms), including TAs, who utilize a proprietary computerized accounting system.

Relationship with Tie-up Organizations

NFCTA and TPA Tie-up Scheme

Tie-up Scheme with TKC, CPTA Associations and CPTA Cooperative Associations

Win-win Relationship Created by Partner-specific Sales

Strategy for Products and Services

For many years, Daido Life has been providing protection through its main product of term life insurance to cover the mortality risk of SME owners in order to help mitigate the related business risk.

Meanwhile, in recent years, against the backdrop of the ongoing aging of society and advances in healthcare technology, together with the retirement age of SME owners being generally extended, disability risk has been increasing where in the event that an SME owner suffers a critical illness such as cancer, acute myocardial infarction or a stroke, or in the event that an SME owner is forced to retire during their tenure due to disease or injury. In addition to its mainstay term life insurance, Daido Life is also engaged in offering a full range of protection by enhancing its disability income insurance and further penetrating core markets. Specifically, alongside term life insurance, the company is strengthening efforts to promote its J-type product, which covers a long-term absence from work due to critical illness, its T-type product, which covers retirement risk in case of physical disability, and its M-type product (non-participating comprehensive medical insurance), which covers temporary absence from work due to hospitalization.

In the creation and expansion of new markets, Daido Life is also pursuing the full-fledged development of proposals for individual protection to SME owners or sole proprietors as part of its effort to create new markets and make them part of its core business. In October 2015, Daido Life launched Shunyu Relief, an insurance policy to protect against loss of income when long-term care is required, and Kaigo Relief, an insurance plan to cover nursing care costs, as strategic products for this market. Daido Life has also introduced Kaigo Concierge, a new service offering comprehensive support for nursing care, including offering consultation regarding nursing care issues, in cooperation with nursing care service providers. This is part of the company's effort to promote integrated products and services.

For fiscal 2015, the company's new policy amount for J-type product, T-type product, and nursing care products (Shunyu Relief and Kaigo Relief) combined amounted to ¥827.0 billion, comprising 19.2% of the entire new policy amount, signifying that these products are now Daido Life's mainstay products alongside term life insurance.

Providing a Full Range of Protection