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Business Improvement Plan |
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Status of ongoing Business Improvement Plan reported (Apr 20) |
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MSI submitted the ninth report on the progress of the Business Improvement Plan ("BIP") to the Financial Services Agency ("FSA") of Japan. It reported that the claim payment divisions were reinforced additionally with 116 employees effective April 1st, 2007 as part of the remedies set in the BIP. Also it contained the newly taken measures for corporate quality enhancement under the new mid-term management plan, “New Challenge 10,” which embarked for the 4-year period covering fiscal 2007 through fiscal 2010.
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Status of ongoing Business Improvement Plan reported (May 21) |
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MSI submitted the tenth report on the progress of the BIP to the FSA. It reported that a corporate quality enhancement campaign was in action, aiming to ensure sales practices according to the “basic cycle of insurance” as part of New Challenge 10. In addition, it referred to a reinforcement of the claims handling divisions with 8 more persons in total assigned thereto effective May 1st and June 1st.
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Status of ongoing BIP reported (Jun 21) |
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MSI submitted the eleventh report on the progress of the BIP to the FSA. It reported that the “Corporate Quality Month” campaign would be implemented with its period set in July. It would aim to renew our pledge of customers’ protection and benefits and thereby reconfirm our commitment to embedding orientation to forming a corporate culture of persistent pursuit for corporate quality improvement. Another one of the specific measures reported therein was the “Shikkari Kakunin” campaign made to remind employees of appropriate sales attitude in underwriting.
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| (2) |
Domestic Insurance Business |
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MSI Launching “Product Innovation” (May 2) |
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The “Product Innovation” project embarked to run throughout fiscal 2008, responding to complaints on the insurance policies from customers saying “too complicated terms and conditions” or “too many extra riders” as well as those from agents saying “difficult to explain to customers.” Specifically it reviews the existing products in order to (1) streamline the product lineup, (2) paraphrase technical terms of insurance into those easy to understand, (3) make policy clauses yet easier to understand, (4) construct the “Product Control System” and (5) provide customized online services regarding policy and list of eligible claims. MSI will thereby develop insurance products whose features are easy for customers to understand and for agents to explain to customers, and ensure routine practices based on the “basic cycle of insurance,” which consists of “explanation and proposition,” “explanation of material matters and confirmation of intent,” “contract conclusion and declaration,” “policy maintenance and administration” and “renewal notice and management” in line with efforts to enhance corporate quality originated from customers’ viewpoints.
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Securitization Program for Typhoon Risk (Jun 1) |
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MSI syndicated a securitization facility of the claims related to typhoon risk within Japan in order to enhance stability and diversity of the methods for transferring its insurance risks to third parties. While the stability of traditional reinsurance market is threatened by the several recent hurricanes in the U.S. and other major natural disasters, MSI uses risk swaps and this securitization program in addition to traditional reinsurance so as to mitigate its exposure to domestic catastrophe risks efficiently. On the other hand, through assuming overseas catastrophe risks by its reinsurance subsidiaries, it rebalances the global catastrophe risks portfolio. All these measures represent that MSI promotes comprehensive reinsurance strategy in the MSI group (MSIG).
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“Typhoon Yojin” weather derivative contract on sale (Jun 11) |
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MSI released Typhoon Yojin, a sort of weather derivative instrument designed for companies to hedge risks of earnings reduced due to typhoons. It pays back to its holder an amount computed based on the number of typhoons that have passed through a circle whose center point and radius were defined in the contract. For the coming season in this fiscal year, the instrument is modified for more convenience to holders, with the minimum premium re-set from 300,000 yen per contract by a 100,000 –yen notch nationwide as well as with geographical availability extended in more districts .
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“Super Money Package Insurance” on sale (Jun 12) |
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A new transportation insurance, Super Money Package Insurance (Super Money One) was developed for corporate clients who regularly deliver wads of money and securities . The policies effective July 1st or later are on sale. Super Money One covers losses of notes and securities seamlessly - during transportation and storage in the safe. The policyholder not only can save the administrative jobs but also can customize the plan in accordance with its specific routine and the risks lying therein. Though the conventional Money Package Insurance is sold to the corporate clients with annual sales less than five billion yen, this particular policy is sold regardless of the customer’s annual sales. Thus it can meet needs of a wider range of customers, including those wishing a higher benefit .
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Policy envelop redesigned based on customers’ comments (Jun 26) |
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The layout of envelop for enclosing a policy was redesigned to make it clear for the awaiting applicant that it contains his/her insurance policy, which is very important for him/her. The new envelops are in use for the policies issued June 25, 2007 or later. This revision was made in response to comments mainly obtained in the customer survey carried out since November 2006. We continue to take up any good suggestions from customers in the business improvement.
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| (3) |
Overseas Business |
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Technical aid of general insurance given to Asian officers (Apr 24) |
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MSI provided a two-week training program of non-life insurance as technical assistance to the officers of the insurance authorities from three ASEAN countries, i.e. Cambodia, Laos and Myanmar . The Japan International Cooperation Agency (“JICA”) sponsored this program as one of its regional training programs, and selected MSI to commission it. MSI has provided trainings of the insurance technology for years to officers of the supervisory authorities and managers of the insurance companies from various Asian countries , and will continuously commit itself to development of the insurance markets in Asia.
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Thailand branch awarded 4 straight years by Kingdom’s authorities (May 31) |
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MSI Thailand branch (General Manager Toshinari Tsunei) was awarded “Excellent Insurance Company” for its operation by the commerce minister of Kingdom of Thailand for four consecutive years. MSI takes it a prestigious recognition of its corporate quality in CSR activities, legal compliance, etc. for the branch is one of the key overseas offices within the MSI. There has been no non-Thailander insurer but the four-straight-year winner, MSI Thailand branch, that has won the award consecutively since the award was established.
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| (4) |
Life Insurance |
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MSI MetLife received 5-billion yen capital injection (May 18) |
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Mitsui Sumitomo MetLife Insurance Co., Ltd. (“MSI MetLife”) increased its capital by 5.1 billion yen effective May 18, 2007 for strengthening management base, resulting in 45,395 million yen in aggregate of common stock and capital surplus. Incidentally, MSI MetLife had its insurer financial strength rating upgraded from AA- to AA by Standard and Poor’s effective April 23.
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New medical insurance well-reputed for advanced medicine (Jun 14) |
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Mitsui Sumitomo Kirameki Life Insurance Company, Limited (“Kirameki Life”) embarked New Medical Insurance last November. It has enjoyed a favorable reputation for its “enhanced and easy-to-understand coverage,” extended to advanced medical treatments and sold more than 30,000 policies since then, equivalent to four times of sales of its previous model for the period of a year before.
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Extra rider of early terminable premium installment on sale (Jun 28) |
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Kirameki Life developed “Premium Waivable Extra Rider” and launched it in the market July 2, 2007. Assuming cases where a policyholder falls into a situation where he/she is no more able to pay premiums before the maturity, this rider was developed to retain the coverage in force, which is an important protection for him/her, even in such cases. Its coverage ranges from specified diseases, specified disabilites to situation in necessity of nursing care at a reasonable rate of premiums.
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| (5) |
Financial services and risk-related businesses |
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Acquired weather risk management firm for global operation (Apr 19) |
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MSI acquired Guaranteed Weather Holding Ltd. (the head office in the State of Kansas, the U.S.), a risk management firm specialized in the weather derivatives, which has been a business partner of MSI in this field, and made it a wholly-owned subsidiary with its name changed to MSI Guaranteed Weather (“MSIGW”). The acquisition of a major world-class players in the weather derivative market, not only enables MSI to establish a solid business system for stable and continuous supply of weather derivative line-up priced reasonably to clientele, but facilitates its entry into the weather derivative markets worldwide for full scale operation. And thereby, MSI aims to further expand the weather derivative business and increase revenues therefrom.
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IRR provides consultation service for new-type flu remedy (May 11) |
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Inter-Risk Research Institute & Consulting Inc. (“IRR”), one of the MSIG companies, commenced a comprehensive consulting service to corporate clients, including a preventive scheme and an emergency and business continuity plan in order to cope with a possible pandemic of new types of influenza. As concerns over new types of influenza have spread out worldwide recent years, more Japanese corporations are aware that preemptive action and counter-plan are critical. In response to this move, IRR carries out the comprehensive consulting service, which is the first one in Japan.
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IRR offers BCP consulting service to local banks (May 18) |
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IRR, one of the MSIG companies, developed a consulting service of business continuity planning (“BCP”) to local banks and embarked it on a nationwide scale. This is to meet the BCP needs growing among the local banks, and developed based on their business priority to retaining the banking functions sound and intact.
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| (6) |
Environmental and Social Contribution Activities |
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6th lecture given in Citizens’ Environmental Course (May 15) |
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The sixth lecture was given open to public audience, mainly targeting residents in the neighborhood of the MSI Surugadai Building and people interested in urban greenery activities. This time, Associate Professor [/Jun?] Hattori [/Hasebe?] of Tokyo University of Agriculture was invited. His speech began with decribing the Surugadai area in the Edo era, where historical streets and still remains redolent of the Edo culture, and dealt with the features of garden plants and the way people had enjoyed them those days.
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| (7) |
Other Topics |
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New Challenge 10, new mid-term management plan formulated (Apr 6) |
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The MSIG formulated the mid-term management plan, New Challenge 10, for the group which sets the target year to fiscal 2010, and put it in effect. This management plan contains what the MSIG should be like by fiscal 2010, the strategy therefor and the values all the group employees should respect, and we all will take part in the relevant measures.
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Quality Enhancement Campaign going on at all units and agents (Apr 9) |
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In line with the launching of New Challenge 10, the mid-term management plan, the Quality Enhancement Campaign has been carried out to ensure the routine practices based on the “basic cycle of insurance” by all the employees and agents. This campaign involves all the units and agents in the quality enhancement efforts originated from the customers’ viewpoint at their positions, and aims that all the agents should establish a habit of conducting the routine business according to the “basic cycle of insurance” by the end of fiscal 2008.
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Personnel programs enhanced for child care (May 7) |
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MSI intends to further enforce equal opportunities for men and women, particularly improving the working environments for women according to the lifecycle. As part of it, the personnel system was enhanced in the programs of maternity hours and leave before and after childbirth to a large extent effective April 2007. |
