Core Theme 1: Providing Safety and Security
The world is now facing various social issues, inflicted by frequent large-scale natural disasters, demographic shifts, income disparities and poverty. In Japan as well, issues are becoming prevalent also in relation with technological innovation as well as community resilience (disaster prevention and mitigation) and the country’s declining birth rate and aging population. These issues may induce drastic changes in risks surrounding the insurance business. To protect people, including our customers, from these varying risks and also capture business opportunities while responding to these risks, Tokio Marine Group has selected “Providing Safety and Security” as one of our three CSR core themes. We are making efforts toward a safe, secure and sustainable future throughout our entire business operations from conducting research on natural disaster risk to providing products and services that are beneficial for safety and security, improving quality from the customer’s perspective and undertaking local community and social contribution activities leading to safety and security.
Making Society Resilient to Natural Disasters
One mission of Tokio Marine Group is to provide, in response to natural disaster risk, products and services leading to the safety and security of customers and local communities. To achieve this mission, we are applying our knowledge, which we have accumulated through research on natural disaster risk and participation in international initiatives, to the development of insurance products and services and are promoting activities to disseminate our know-how on disaster prevention and mitigation widely throughout society. Even after a disaster, we focus on making swift claims payments and providing services for the early recovery of business operations.
Building a Secure Society by Leveraging Traffic Technology Innovation
Another mission of Tokio Marine Group is to deliver traffic safety and security through its non-life insurance products and services. Tokio Marine Group provides insurance products and services that quickly capture the latest innovation in traffic technology, and will contribute to increasing society’s preparedness against traffic risk and prevention of traffic accidents.
Building a Secure Society by Responding to Varying Lifestyles and Changes in Society
Tokio Marine Group offers products and services that increase safety in all aspects of people’s living through its home, travel and Islamic-style insurance. We have also started providing services to counter the growing corporate governance and cyber risks resulting from business globalization and technology innovation. Overall, we are working to provide comprehensive coverage matched to the needs of our day-to-day life.
Eliminating Poverty in Society
Based on its know-how accumulated in the insurance business, Tokio Marine Group has developed and initiated sales of weather insurance and microinsurance in India, thereby providing low-income earners with greater access to insurance. We also hope to contribute to the resolution of poverty issues in the world through financing to and investment in financial institutions providing microfinancing services.
Improving Quality from the Customer’s Perspective
Aiming to become “a company that delivers sustainable growth by providing safety and security to customers and by always remaining their first choice,” Tokio Marine Group takes feedback from customers seriously and works jointly with agents to improve the operational quality on a constant basis.
Through these endeavors, Tokio Marine Group will provide greater safety and security to customers, local communities and society worldwide.
Value Creation Providing safety and security to customers, local communities and society worldwide through the insurance business
- Risks and Opportunities Associated with Climate Change
Considerable concern exists over the possibility of increased typhoons, heavy rains, droughts and other natural disasters caused by climate change. The insurance business has a close relationship with weather disasters and therefore risks such as the following are possible.
- Growth in the number of insured contingencies and insurance claims payment amounts due to an increase in weather disaster risk
- A sharp rise in reinsurance premiums due to increases in large-scale weather disasters
- Worsening fund position due to an increase in insurance claims payment amounts resulting from weather disasters
- Risk of discontinuation of business due to the impact of weather disasters on buildings, IT facilities and other facilities
- Risk of impacts from weather disasters in countries and regions throughout the world along with growth in the overseas insurance business
In 2007, the Intergovernmental Panel on Climate Change (IPCC), which collects scientific research into climate change, was awarded the Nobel Peace Prize for its contributions to raising recognition of climate change. Established in 1988, the IPCC presents the current state, causes, impact, adaptation measures and mitigation measures concerning climate change through means such as assessment reports. In its “Special Report on Managing the Risks of Extreme Events and Disasters to Advance Climate Change Adaptation” issued in 2012, the IPCC supplemented previous research with an appeal to the importance of adaptation and disaster risk management with respect to climate change.
The IPCC Fifth Assessment Report announced from 2013 to 2014 provided, in addition to the topics discussed in past reports, a more detailed quantitative assessment of impacts on food and incomes and made an appeal to government decision-makers. The Working Group II Report states that besides river overflows and coastal region seawater immersion that causes flooding, the increases in the severity and frequency of extreme weather disasters are conspicuous risk factors at the global level. In view of this, the report cited insurance systems as one of the economic sectors affected by these risk factors.
Although weather phenomena are natural occurrences that are beyond our control, it is possible to prepare ourselves and adopt measures against the increasing risks of weather disasters. Tokio Marine Group regards these evolving risks as opportunities and aims to promote risk-based management to maintain a sound financial base and to provide protection to customers and society by offering appropriate insurance products and risk management services. We are promoting the following specific measures as activities for creating opportunities.
- Promoting research on weather disaster risk through industry-academia collaboration with universities, including The University of Tokyo, Nagoya University and Kyoto University, etc.
- Establishing investment funds for facilities for renewable energy such as solar power and providing related insurance and consulting services
- Providing insurance products and risk management services to cover weather disaster risk in developed and developing countries
- Providing insurance so that persons engaged in agriculture can make preparations against extreme weather in developing countries and regions
- Activities for making policy recommendations to encourage disclosures that will help investment decisions through participation in an initiative led by the Task Force on Climate-related Financial Disclosures (TCFD) of the Financial Stability Board (FSB)
- Creating a sustainable society by utilizing disaster risk financing and an insurance scheme
- Enlightenment and educational activities related to weather disaster risk