Under the current medium-term management plan, T&D Financial Life is promoting the “diversification of product lineup,” “expansion of sales network of insurance agents,” and “improvement of customer service” to become the company of choice for customers and agents in the independent insurance agent market, and will work to expand its business performance (new policy amount and EV).
In fiscal 2016, the first year of the current medium-term management plan, the sales performance indicators of the new policy amount and the policy amount in force were ¥235.4 billion and ¥1,879.3 billion, respectively, which the company achieved its corresponding management targets for the fiscal year of ¥220.0 billion and ¥1,850.0 billion.
The new policy amount, in particular, saw significant growth from income protection insurance and other level-premium products on which the company focused, and which increased 2.8% year-on-year to ¥169.9 billion, despite the suspension of sales of mainstay yen-denominated single-premium whole life insurance products due to the impact of decline in domestic interest rates.
In fiscal 2016, MCEV increased by ¥3.9 billion from the previous fiscal year-end, to ¥97.4 billion. While the value of new business remained negative up to the third quarter, mainly due to the decline in domestic interest rates, the company took steps to improve that figure, including the introduction of new riders to its foreign currency-linked single-premium whole life insurance product. As a result, the value of new business saw a turn-around in the fourth quarter, ending the fiscal year at ¥0.9 billion (a decrease of ¥2.5 billion from the previous fiscal year-end).
Product Strategy
T&D Financial Life has worked to respond to the diversifying needs of its customers by developing products which offer differentiated benefits. Regarding April 2016 onward providing a variety of products and riders.
In August 2016, the company revised and launched the Kakei Ni Yasashii Shunyuhosho income protection insurance and the Hataraku Anata Ni Yasashii Hoken, an income protection insurance in the event of specific diseases. Specifically, revisions included expansion of eligible ages and coverage periods compared to existing products; expanded coverage related to carcinoma in situ; and a simpler explanation of cause for payment due to acute myocardial infarction and cerebral stroke.
In November 2016, the company began handling two riders which can be added to the Shogai Premium World 3 single-premium whole life insurance product. Specifically, the company began offering a “Rider for Transfer to Whole Life Insurance Upon Reaching Target Value,” under which, when the surrender value reaches either 100%, 105%, or 110% of the single-premium, the policy is automatically transferred from a foreign interest rate to whole life insurance utilizing a domestic interest rate; and a “Long-term Care Pension Payment Transfer Rider,” which makes it possible for those assessed at nursing care level 1 or higher to receive a lifetime pension.
In February 2017, the company launched Kakei Ni Yasashii Shushin Iryo, a level-premium whole life medical insurance product. The product was developed in cooperation with the companies of the T&D Life Group as a simplified type of medical insurance which offers discounted premiums to non-smokers, and coverage which starts with one-day hospitalization and outpatient surgery. Coverage is also available for short-term hospitalization, lifestyle diseases and advanced medical care, offering customers the coverage they need in line with progress in current medical systems and technology.
Further, in May 2017, the company launched two new single-premium whole life products: Shogai Premium Japan 4 and Shogai Premium World 4. By reducing policy costs compared to existing products, the first product makes it possible to continue offering coverage even in a low interest rate environment, and the second product uses the same mechanism to increase returns to policyholders. Both products inherit the feature of existing products which allows customers to simultaneously put in place both the funds they will use in their lifetimes and the funds they will leave behind, while expanding the eligible age range and revising rates by age group and gender, offering a broader response to customer needs.
By working to develop its relationships with financial institutions and insurance shops through these and other products, the company has increased the number of sales agents which serve customers over-the-counter. As of the end of fiscal 2016, the company has entered into agency consignment contracts with a total of 137 financial institutions and others.
[Launch and Renewal of Main Products]
| August 2016 | Renewal of Kakei Ni Yasashii Shunyuhosho Renewal of Hataraku Anata Ni Yasashii Hoken |
|---|---|
| November 2016 | Began offering the “Rider for Transfer to Whole Life Insurance Upon Reaching Target Value” Began offering the “Long-term Care Pension Payment Transfer Rider” |
| February 2017 | Launched Kakei Ni Yasashii Shushin Iryo |
| May 2017 | Launched Shogai Premium Japan 4 Launched Shogai Premium World 4 |
- Medium-Term Management Plan
- Taiyo Life Insurance Company
- Daido Life Insurance Company
- T&D Financial Life Insurance Company
- T&D Asset Management Co., Ltd.
- Pet & Family Small-amount Short-term Insurance Company
- Outlook for Sales Performance IndicatorsFiscal 2017
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- Policy amount in force
- ¥2,060 billion
- New policy amount
- ¥370 billion
- Fundamental Strategy
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- Aiming to establish a strong brand in life insurance sales through the independent insurance agent channel*, the company is promoting the “diversification of product lineup,” “expansion of sales network of insurance agents,” and “improvement of customer service.”
- * The independent insurance agent channel collectively refers to the OTC sales channel at financial institutions, including banks, securities firms, and the insurance shop agent channel.
- Business Model
