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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.

Risk Management System

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.

The Company promotes the development and enhancement of the risk management system for the entire Group in accordance with the “Tokio Marine Group’s Basic Policies for Risk Management.” The Company also manages quantitative risks for the Group in order to maintain credit ratings and to forestall insolvency in accordance with the “Tokio Marine Group’s Basic Policies for Integrated Risk Management.”

Among the various risks, the Company recognizes that insurance underwriting risks and investment risks must be managed as sources of earnings. The Company therefore controls these risks considering the balance between risk and return. The Company also identifies administrative risks, system risks and other associated risks (such as cyber risk and risk of information leak) that arise from the Group’s business activities and strives to prevent the occurrence of or reduce these risks.

The Company presents its basic policies for risk management and provides instruction, guidance, monitoring, and other services to domestic and overseas Group companies through the Risk Management Department and the Business Divisions. Group companies establish risk management policies in line with the policies of the Group and execute risk management independently. For cyber risk and risk of information leak, the Company conducts tests relating to emergency response once a year and as a separate initiative teams up with other organizations to practice emergency response.

Through the above measures, the Company executes proper risk management and ensures stable business operations of the entire Group.

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, earthquake claims cases for residential earthquake insurance shall be handled in the Kansai region. Additionally, backup offices shall be launched at multiple bases throughout Japan, including in the Kansai region, 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 backup 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, including for automobile accidents, 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

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

Since April 1, 2018, Tokio Marine & Nichido has revised its “Insurance Underwriting Risk Management Manual” so as to clearly include environmental and social factors as the checkpoints for insurance product development and revision.