1.	Rapidly changing insurance market Deregulation of the Japanese non-life insurance industry, particularly in terms of products and insurance premiums, has not only resulted in intensifying competition among existing players, but the entrance of mega-capitalized foreign companies and players from other industries is further intensifying competition on a daily basis. In order to satisfy the diversified and sophisticated customer needs, the non-life insurance industry has now entered into an era required improving capabilities in products development and price competitiveness. In the life insurance sector, indicators point to a saturation of the market for conventional products. Meanwhile, rapidly shifting demographics from a combination of a declining birth rate and an aging society, as well as an expanded role for private pension plans, would point to a huge expansion of non traditional markets for this sector such as healthcare, medical care, and pension plan. Moreover, direct marketing through e-commerce and other new distribution channels are changing the face of the industry.
2.	New Era of Financial Services The barriers among the financial services sectors are also shrinking, creating huge business opportunities in investment trusts, defined contribution pension plans, and other financial services-related sectors. Moreover, the new business domain using the advanced financial technology, such as financial guarantee or securitization, has grown up. The preparation for the "New Era of Financial Services" has become more important.
3.	Borderless Global Competition Mega-capitalized foreign companies are crossing national borders and creating powerful businesses throughout the world. Japanese insurance companies, as well, must not only protect their presence of the domestic market, but must deploy aggressively into global markets.