New Challenge 10 New Challenge 10 June 1, 2007 Business - PDF document

New Challenge 10 New Challenge 10 June 1, 2007 Business environment Direction Challenge Business environment Direction Challenge Changing insurance market Changing insurance market � Saturated non-life market � Improve quality from customers’ � Saturated non-life market Establish business model Establish business model � Expense loading rate liberalized � Expense loading rate liberalized viewpoint facilitating efficient facilitating efficient � Mortality gain decreased based on � Mortality gain decreased based on � Higher cost competitiveness performance of high quality performance of high quality revised mortality table revised mortality table � Innovation of operational process service service Rising social demand and customer Rising social demand and customer expectation to companies expectation to companies � Further promotion of CSR A company that sincerely A company that sincerely � Tighter corporate governance performs duty to explain to performs duty to explain to Increasing shareholders’ interest in Increasing shareholders’ interest in � Intense IR/PR activities stakeholders corporate governance stakeholders corporate governance Diversifying need of and channels to Diversifying need of and channels to customers customers � Aging society with low fertility � Develop competence to meet � Aging society with low fertility Provide solution in Provide solution in � Retiring baby-boomers � Retiring baby-boomers customers’ needs � Diversifying risks surrounding response to diverse needs � Diversifying risks surrounding response to diverse needs � Enhance product quality companies companies � Bank OTC and other new channels � Bank OTC and other new channels � Transform the business portfolio for Losses increasing due to unusual Losses increasing due to unusual risk diversification Maintain and strengthen Maintain and strengthen weather events and large-scale weather events and large-scale � Stronger capital base and tighter risk solvency solvency disasters disasters control � Intensify the group management World-class financials, with some World-class financials, with some strategy attempting to transform into mega A group strong enough to attempting to transform into mega A group strong enough to � Well balanced business portfolio for group by M&As, competing in the group by M&As, competing in the survive global competition survive global competition earnings growth global market global market � Build the corporate brand � Strengthen the tri-region framework Speedy business Competitions intensifying in the BRICs Speedy business Competitions intensifying in the BRICs of overseas business and other emerging markets with expansion on a global and other emerging markets with expansion on a global � Business expansion, incl. M&As entrants from the EU and the US entrants from the EU and the US scale scale 0

New Challenge 10 : Basic Group Strategy Corporate message For all the things you care about For all the things you care about CSR-oriented management through quality CSR-oriented management through quality improvement originating from customers’ viewpoint, improvement originating from customers’ viewpoint, trust and growth trust and growth Improve quality of products and Improve quality of products and Improve quality of products and 1 1 1 Trust Trust Trust services as first priority services as first priority services as first priority Eearn trust from a wider range Eearn trust from a wider range Eearn trust from a wider range 2 2 of customers, develop trust of customers, develop trust Growth Growth 2 of customers, develop trust Growth gained so gained so gained so Re-invest mgmt resources Re-invest mgmt resources Re-invest mgmt resources Quality Quality Quality 3 3 3 increased during growth increased during growth increased during growth improvement improvement improvement Keep the virtuous cycle from 1 1to to 3 3 going round for going round for Keep the virtuous cycle from sustainable quality improvement sustainable quality improvement Corporate quality Corporate quality Corporate quality Build corporate brand Build corporate brand Build corporate brand improvement improvement improvement 1 New Challenge 10 Position Corporate Mission Corporate Mission Charter on Charter on Corporate message Corporate message Professional Conduct Professional Conduct New Challenge 10 New Challenge 10 CSR-oriented management through quality CSR-oriented management through quality improvement originating from customers’ viewpoint, improvement originating from customers’ viewpoint, trust and growth trust and growth Basic group strategy Basic group strategy Implement 3 quality improvement strategies, Implement 3 quality improvement strategies, Quality improvement Quality improvement Demonstrate group total power in the 5 core businesses Group business strategy Demonstrate group total power in the 5 core businesses Group business strategy strategy strategy Seek quality improvement and business Seek quality improvement and business Specific challenges in the 5 core businesses Specific challenges in the 5 core businesses promotion each business domain promotion each business domain Shain Hatsuratsu nurturing / Strengthening management base Shain Hatsuratsu nurturing / Strengthening management base Human resources development, job satisfaction, Human resources development, job satisfaction, comfortable workplace, corporate governance, branding comfortable workplace, corporate governance, branding strategy, etc. strategy, etc. Basic group strategy < desirable quality and outstanding quality > Desirable quality Outstanding quality Desirable quality Outstanding quality Yesterday’s outstanding quality level may Yesterday’s outstanding quality level may Quality satisfying even no more be today’s one as customers’ Quality satisfying even no more be today’s one as customers’ Quality on a service level that Quality on a service level that customers’ sub-conscious customers’ sub-conscious need is changing ceaselessly. need is changing ceaselessly. customers find satisfactory customers find satisfactory need or quality on a service need or quality on a service level far beyond customers’ level far beyond customers’ expectation expectation Sustainably pursue outstanding Sustainably pursue outstanding quality level quality level 1

New Challenge 10 : Quality Improvement Strategy Reflect a wide range of stakeholders’ ’ comments comments Reflect a wide range of stakeholders’ comments Reflect a wide range of stakeholders � Customers’ complaints received and comments returned on surveys � Employee comments sent on the intranet and returned on surveys � Proposals raised in the Meet-the-Management campaign and by the Council on Promotion of Customers' Viewpoint � Stakeholders’ comments received in other channels Development of employees and agents Development of employees and agents Improvement of business process and infrastructure Improvement of business process and infrastructure Development of employees and agents Improvement of business process and infrastructure � Changes fundamentally the employee training program and the � Improve business process based on dramatic review systems of personnel transfer and evaluation � Make visitor- and employee-friendly office environment � Re-program the agent training according to basic cycle of insurance � Streamline the logistics process, etc. � Help employees and agents individually develop their capabilities Apply these three as bases in every business process for quality improvement Apply these three as bases in every business process for quality improvement 2 Quality improvement strategy < reflect a wide range of stakeholders’ comments > � Customer Service Dept. established to centralizes complaint handling; Customer Service Department, Customer Service Department, 22,037 complaints received in fiscal 2006 Claims Handling Consulting � Claims Handling Consulting Section opened within the said dept to handle requests of Claims Handling Consulting advice and complaints related to claim payment; 5,912 contacts received in fiscal 2006 Section Section � A panel to raise to the BoD proposals related to analysis on customers’ comments, Council on Promotion of Council on Promotion of Customers' Viewpoint customer protection and/or customers’ benefits; has met 3 times to date Customers' Viewpoint � Proposals and suggestions from employees posted on the intranet board; No. 1 Information Corner, No. 1 Information Corner, 1,560 cases since last July to date Suggestions from MSA Suggestions from MSA � Suggestions from MSA (nationwide organization of the agents); 8,742 cases since last July to date � Corporate Quality Control and Customer Service Depts sent survey sheets enclosed with Survey to new / renewal Survey to new / renewal policy certificate; 8,540 sheets returned in fiscal 2006 policyholders, policyholders, � Made by Claims Administration Dept upon payment; 9,489 cases returned in fiscal 2006 Customer survey Customer survey � Chairman, President and Executives at Home Office exchanged opinions directly with Meet-the-Management Meet-the-Management employees in various positions at each branch office; campaign campaign 120 meetings in fiscal 2006, scheduled to continue 2