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Risk Management

To ensure financial soundness and appropriateness of business operations, Tokio Marine Group has identified the various risks surrounding it in an overall fashion and implements appropriate risk management corresponding to the nature, status and other attributes of the risks.

Crisis Management System

Tokio Marine Group has established the crisis management system to minimize economic losses and other impact incurred in an emergency and immediately restore ordinary business operations.
The Company has formulated the “Tokio Marine Group Basic Policies for Crisis Management” and the “Tokio Marine Group Crisis Management Manual” based on it, and has set forth the crisis management systems necessary for Group companies to carry out their own roles. The Company has also formulated the necessary actions which should be taken in the case that emergency situations (earthquakes, wind and/or water disasters, terrorist attack, system breakdowns, attacks on cyber securities, material information leakage, etc.) arise and revised the contents to further improve the effectiveness of the actions in fiscal 2017.
Group companies formulate crisis management policies in line with policies of the Group to develop crisis management systems that include establishing a department in charge of crisis management, decision-making procedures for emergency situations and securing the chain of command. In addition to developing the crisis management system during normal conditions, the department in charge of crisis management plays the role of secretariat for response during emergency situations, including reporting to the Company.
When conditions that may develop into an emergency situation arise, in addition to each Group company determining whether or not these conditions correspond to an emergency situation, the Company determines, if necessary, whether or not these conditions correspond to an emergency situation for the Group. This system enables the Company to properly instruct Group companies and make sure necessary actions as a Group can be made.

Basic Policy for Responding to Disasters (Tokio Marine & Nichido)

In the event of a natural disaster such as an earthquake or a typhoon, Tokio Marine & Nichido has a crucial social mission of ensuring that it can continue its important business operations as a non-life insurer such as receiving accident notices, paying on claims, maturity refunds and other payables, and concluding policies in both the disaster-stricken area and elsewhere.

Therefore, Tokio Marine & Nichido has prescribed the following two points as its Basic Policies of the Business Continuity Plan for Disasters and formulated a Business Continuity Plan (BCP).

Basic Policies of the Business Continuity Plan for Disasters

1. Principles of employees’ conduct in times of disasters
The priority order for employees’ conduct in times of disasters is as follows.
  • Assure the safety of human life
  • Cooperate in securing the safety of local communities
  • Continue important operations (business continuity)
In other words, the principle of employees’ conduct is to give precedence to “assure the safety of human life” and “cooperate in securing the safety of local communities” before conduct related to “business continuity.”
2. Basic policy for business continuity
The following three business operations shall be regarded as important business operations during a disaster, management resources (personnel, funds) shall be transferred as needed and top priority shall be given to the continuation of these important business operations.
  • Receiving of accident notices
  • Payment of claims, maturity refunds and other payables
  • Conclusion of insurance contracts

Building a Structure for Paying Insurance Claims Benefits in the Event of a Disaster Striking the Tokyo Metropolitan Area

At Tokio Marine & Nichido, should the Head Office facilities in particular become unusable because of a disaster such as a major earthquake striking the metropolitan area, a claims receiving team shall be launched in Kansai and it shall handle earthquake claims cases for residential earthquake insurance. Additionally, back offices shall be launched at multiple bases throughout Japan, including in Kansai, and claims payment service responses, excluding on-site assessments after receiving claims, shall be made by all branches throughout Japan.

If the metropolitan area is struck by a disaster, a Claims Service Headquarters would be set up within the Head Office Disaster Response Headquarters. At the same time, a satellite office centering on the Claims Service Department in charge of Tokyo and Chiba, Saitama and Kanagawa prefectures shall be set up and will accept support personnel from throughout Japan and handle customer responses, mainly on-site claims assessments, in disaster-stricken areas.

The infrastructure needed to provide claims services swiftly to the metropolitan area in the event of a natural disaster has been built in advance in the locations where the above-mentioned back offices and satellite offices would be established. In this way, a structure for claims payment services during times of emergency is being established.

Non-earthquake regular claims cases shall be allocated to and handled by claims service bases throughout Japan prescribed in advance.

Response to Earthquake Disasters

Tokio Marine Group is utilizing the Group’s collective strengths to quickly make claims payments and to rebuild the disaster-stricken areas.

ESG Integration into Insurance Underwriting Risk Management

Tokio Marine & Nichido has revised “Insurance Product Development and Revision Procedure” so as to include “CSV (Resolving social issues through the business)” as one of the goals of the product development and revision and “environmental and social factors” as checkpoints for reducing risks when developing and/or revising an insurance product since 1 July 2017.

Tokio Marine & Nichido has revised “Insurance Underwriting Risk Management Manual” so as to clearly include environmental and social factors as the checkpoint of insurance product development and revision since 1 April 2018.