Livability Innovations for Japan’s Aging Habitations

At Nisshin our purpose is to deliver peace of mind by standing by each and every one of our customers. We are committed to delivering insurance products and services that resonate with individuals and local businesses, including those who may be economically vulnerable, by ensuring they can lead secure, stable lives and run their businesses with peace of mind. Our product development is founded upon this approach.

We place tremendous value in what our customers tell us, and often receive feedback from customers and the insurance agents across the country who are closest to them. We’re also constantly learning from the feedback we receive from the internet and other channels.

We noticed that every year, the number of people with concerns about their living environment, such as aging condominiums and the akiya problem, has been increasing. Maintaining and improving the living environment is one of the SDGs (No. 11. Sustainable cities and communities) and is consistent with our company’s purpose. Therefore, we began developing insurance products to help address these social issues.

Condominium Doctor Fire Insurance, which was launched in 2015, is an insurance product designed for condominium management associations. The product's key feature is that premiums are determined based on a diagnosis and evaluation of a condominium's management status by the management association, including not only the building's age, but also the maintenance condition of its common areas.

At the time this product was developed, most fire insurance premiums for condominium common areas were determined solely based on the building's age. We received feedback from customers telling us this approach was unreasonable, especially for condominiums that have been properly managed, which became the impetus for developing our product. We aspire to be like a doctor who diagnoses condominiums and makes optimal proposals based on their condition, hence the name Condominium Doctor Fire Insurance.

By listening to customer feedback and actually verifying the conditions of building common areas, we found significant differences, even among buildings of the same age, between those that are properly managed and those that are not. However, we needed a fair and objective standard to evaluate management conditions. We turned to licensed strata management consultants, who are nationally certified experts in condominium management.

Put simply, they are concerned their akiya might bother people living in the neighborhood. Vacant unmanaged houses can damage the aesthetics and public safety of the community. They also aggravate the physical risk of collapse and arson, which pose a threat to neighboring homes.

By using our management service, owners can entrust us with the day-to-day management of their akiya. Furthermore, we can offer even greater peace of mind by providing compensation in the unlikely event of an incident. This product was developed in partnership with the Vacant House & Land Management Center, so the services we provide take advantage of each other’s expertise.

We have received encouraging feedback from the management associations that have enrolled in our Condominium Doctor Fire Insurance. For example, one association told us that not only did their premiums decrease because we recognized their diligent approach to maintenance and investment in upkeep, but they also saw an increase in new residents. Some housing information websites publish diagnosis results so that potential residents who see the information know that the condominium association is well-managed, and that they can live there with peace of mind.

Many older condominiums face the issue of aging tenants. However, we also see a growing trend of relatively young households purchasing well-managed condominiums and moving in after renovating their units. Diverse generations or residents living in the same condominiums has positive tangible benefits, such as ongoing maintenance, but also intangible benefits, such as the revitalization of the condominium community.

Our products, which evaluate and support condominium management initiatives, not only protect the value of our customers' cherished homes, but also help create residences that anyone would want to live in. And they contribute to achieving the SDG of "Sustainable cities and communities." In the future, we believe there is room to further enhance the added value of our products and services from this broader perspective of realizing a more sustainable society.

The same sustainability perspective applies to the Dedicated Vacant House Insurance. Leaving akiya unattended can affect not only the owners but also the sustainability of the communities where they’re located.

Owners remain attached to their parents and relatives who once lived in these akiya. To dispose of them because they can’t manage them anymore is a major decision. I hope we can create products that truly support our customers in such difficult situations.

We are currently considering proposals for how to effectively utilize akiya as part of our Dedicated Vacant House Insurance service, as a means of bringing peace of mind to owners and neighboring residents. For Condominium Doctor Fire Insurance, we are considering further improvements that contribute to the stable operation of condominium management associations, helping address the challenges they face.