FALIA Invitational Seminar in Japan
“Individual Life Insurance Marketing Course”
Medium to Long-Term Sales
Strategy at a
Life Insurance Company
May 21st, 2013
Tatsuo Nakagawa
Manager
Marketing Strategy Dept.
The Dai-ichi Life Insurance Company, Limited
1
Presentation Contents
Session 1. Introduction
■ Overview of Dai-ichi Life
■ Changing Environment of the Life Insurance Business
Session 2. Sales Strategy of Dai-ichi Life
■ Total Life Planning Strategy
■ Strategic Alliance
Session 3. Sales Channel Strategy of Dai-ichi Life
■ Efforts toward Diversifying Sales Channel
Summary
2
Session 1. Introduction
Overview of Dai-ichi Life
3
Overview of Dai-ichi Life
(As of end of March 2012)
Company profile
(as of March, 2012)
Name
The Dai-ichi Life Insurance Company, Limited
Total assets
JPY 31,461.9 billion
Head Office
1-13-1, Yurakucho, Chiyoda-ku, Tokyo,
100-8411 Japan
Phone: 03-3216-1211
Premium
income
JPY 3,056.0 billion (April, 2011 - March, 2012)
Claims
payments
JPY 2,508.7 billion (April, 2011 - March, 2012)
Ratings
Rating and Investment Information, Inc. A+
Japan Credit Rating Agency, Ltd. A+
Standard and Poor's A
Fitch Ratings A(as of July 1st, 2012)
Subsidiaries
and affiliates
Domestic: 18, Overseas: 11
Chairman of the
board
Katsutoshi Saito
President
Koichiro Watanabe
Date of
establishment
September 15, 1902
Foundation
funds
JPY 210.2 billion
Policies in force
(Sum insured,
Unit: Billions of
JPY)
Individual insurance:
Individual annuities:
Group insurance:
Group annuities:
No. of
employees
56,852 (Office employees: 12,904,
Salespersons: 43,948)
No. of field
offices
Branch offices: 84,Sales offices: 1,263 (as of
April 1, 2012)
138,597.90
7,537.50
50,491.50
6,065. 90
Management
principle
Policyholders first
“Total life partner”
4
Position within the Industry
【 Business in force (End of FY2011 Sum insured of Individual Insurance) 】
（Trillion of JPY）
180
162
160
139
140
120
103
100
89
80
60
35
40
28
26
25
20
0
Nippon
日本
（18%）
Dai-ichi
第一
（16%）
Sumitomo
住友
（11%）
Meiji
Yasuda
明治安田
Daido
大同
Asahi
朝日
Fukoku
富国
Mitsui
三井
（10%）
（4%）
（3%）
（3%）
（2%）
Share
70％
5
Session 1. Introduction
Changing Environment of
the Life Insurance Business
6
Development of Aging
(Population)
20’s
Demographic
Structure in
2020
Current
Demographic
Structure
Demographic
Structure in
the Seventies
30’s
40’s
50’s
60’s onward
(Age)
7
Overview of Personal Financial Assets (At the end of FY2011)
Total of insurance
And pension
JPY 422 trillion (29%)
Total of personal
Financial assets
JPY 1,516 trillion
現金・預金
兆円
816
Cash and816兆円
Deposits
（55％）
％）
55yen
833 trillion
Insurance reserves
219 trillion yen (15%)
(55%)
Pension & annuity reserves
202 trillion yen (14%)
【Trends of Personal Financial Assets】
】
1,600
1,545
1,519
1,516
1,490
1,480
1,500
1,452
1,429
1,401 1,389
1,410
1,409
1,371
1,400
1,356
1,328
1,286
1,300
1,256 1,260
1,177
1,200
1,134
1,076
1,100
1,026
1,000
９１
９２
９３
９４
９５
９６
９７
９８
９９
００
０１
０２
０３
０４
０５
０６
０７
０８
０９
１０
１１
8
Deregulation (Insurance Industry)
◆ Insurance system reform (1996～
～)
●Entry
into life and non-life insurance markets each other through the affiliate company method
◆ Agency services between insurance companies (2000～
～)
● Made
it possible for insurance companies to perform sales of the products of other
insurance companies as agents
◆ Entry into the third sector
● Japan-US
Insurance Talks
● January 2001～
Entry into each other insurance markets by life and non-life insurance affiliate
companies
● July 2001～
Entry of life and non-life insurance companies themselves
◆ Insurance sales through banks and securities companies
● December
1998～
● April 2001～
● October 2002～
● December 2005～
December 2007～
● April 2011
●
Insurance sales through securities companies
Insurance sales through banks themselves (credit insurance related to home loans)
Insurance sales through banks themselves (individual annuities, etc.)
Insurance sales through banks themselves (single premium whole life
insurance + endowment insurance, etc.)
Insurance sales through banks themselves (all insurance products)
Revise measures for preventing harmful effects
9
Session 2. Sales Strategy of Dai-ichi Life
New Total Life Planning Strategy
10
Diversified lifestyle
Married at the
ages of 20’s
2 children
Wife is a fulltime housewife
Strong needs for death
coverage
With children and a full-time housewife
Dual income with children
Dual income with no kids (DINKS)
Not married
Diversified needs for protection
along with diversified lifestyles
11
Changes in Customers
Declining population and changing demographic structure
(Declining birthrate and aging of society, etc.)
Diversifying lifestyle and needs
(Mandatory retirement age for the baby boom generation, increase of unmarried people,
social advances of women, etc.)
Further slimming of the social security system
(Necessity of self-help efforts / Increasing unease of customers)
Traditionally
Currently
Life security for the surviving family
when a death occurred
Life security for the surviving family
when a death occurs
＋
Existence security
(medical care, nursing, income security)
Life security for the elderly
(annuities, savings)
12
Strategy Suited to the Changes in the Business Environment
Changes in the business environment
Social security/customer needs/competitive environment
“Policyholders-first policy”
“Lifelong partner”
“Total Life Plan”
13
Example Image of the Total Life Plan
Savings (education fund, etc.)
Old age protection (savings for old age)
Nursing care protection
Income protection
Health protection
Death coverage
Finding
employment
Marriage
Birth
of a child
Enrollment of
child in school
Purchase
of a home
Child’s finding
employment
Retirement
age
Old age
14
Aim of the New Total Life Plan Strategy
Current population
demographic
Death coverage +
living protection market
Death coverage
market
20’s
30’s
Features of traditional life insurance in Japan
40’s
50’s
60’s～
～
Our company’s Total Life Plan strategy
◆ Market ～ Being good at death coverage
Not as good at living protection
◆ Proposal of products that are suited to the
customers’ life stage
◆ Once the sale is made it is over and done
with and there is poor after service, which
leaves the customers unsatisfied
◆ Provision of after service to the customer via the
same sense of values that the new contract was
acquired through
◆ Sales of only a single product to each
customer
◆ Overlapping sales to single customers, expanding
into the customers’ households (families)
15
Orientation of Our Market Strategy
Population
Population
distribution
(twin peaks)
Wealthy group
Protection core groups
Middle/senior group
(Death coverage)
Junior group
Single male group
Female group (single, fulltime house wife, etc.)
20’s
40’s
60’s
16
Our “Consulting System” Supporting the Total Life Plan
Customers
In-house
Salespersons
FP/Sales front
Outside
Business owners and
business administrators
Agents
Banks
Securities companies
Wealthy group
17
Visit-Style Shops: “Dai-ichi Life Insurance Shops”
◆ Aiming to further elevate CS by means of “providing Total Life Plan recommendations by means of various policy
conservation transactions, insurance consultations, and more at locations which are near at hand for customers and in a
time frame which is convenient for them, including holidays.”
◆ In addition, it also includes response to “customers for whom it is difficult to maintain contact through visits and sales”
and “customers who would like to perform a comparative review of their own insurance”.
Thinking things
through together
with customers
Our procedures
give customers
peace of mind
around the
country
Handled by our
specialized staff
User satisfaction
rate of 90.7%
“Who should I ask about such matters?”
Dai-Ichi Life Insurance Shops are consultation service
centers that were created based on customer comments
like the one above.
They thoroughly handle a variety of needs to suit the
customer’s lifestyle related to matters like providing for
eventualities, children, and old age.
（※）“Satisfaction rate with responses from
contact points on the whole” in the FY2012
Nationwide Customer Survey. (Survey
period: September 3 – November 26,
2012; survey carried out by Research and
Development, Inc.)
18
Introduction of Mobile Computers (DL Pads)
◆We are introducing DL Pads, which are cutting edge mobile computers with specifications that are
unique to our company to serve as vital infrastructure for promoting our “New Total Life Plan.”
◆DL Pads are equipped with functions that allow salespersons to explain a wide array of information in an
easy to understand manner using illustrations, video, audio, and other media. The information includes
that on health and medical care, the social security system, services customers will receive after joining
based on their insurance arrangements, programs and arrangements that customers can soundly
receive, and more.
The DL Pad’s Presentation Function
19
Session 2. Sales Strategy of Dai-ichi Life
Strategic Alliance
20
Strategic Alliance (Essential Features of the Alliances)
◆ Introduction of the most powerful and very best products in order to make the Total Life Plan complete
◆ Expanding customer services by means of forming a comprehensive insurance group
◆ Creation of customer bases utilizing non-life insurance products and cancer insurance products
Vitalization of Activities and the Creation of New Customer Bases
Sompo Japan Insurance Inc.
■ Mutually providing products
Sales consisting mainly of Sompo Japan’s car insurance in the non-life insurance sector
Sales of our products by Sompo Japan’s agents in the life insurance sector
■ Strengthening our affiliate relationship
In order to have our affiliation produce additional results, in September 2008 we invested in Sompo Japan
DIY Life Insurance Co., Ltd., while Sompo Japan invested in Dai-Ichi Frontier Life
Aflac
■ Sales of cancer insurance
We combined Aflac’s “Cancer Insurance Days for Living” with the “New Total Life Plan” that we provide and
are selling it as our customized “Cancer Insurance Days for Living – Dai-Ichi Life Full Support Plan”
21
Session 3. Sales Channel Strategy of Dai-ichi Life
Efforts toward Diversifying Sales Channel
22
Development of Sales Channels by Market and Product
Positioning salespersons channel as the central channel and developing agent channels in
response to product and market
Corporate market
Individual market
General level
Affluent level
Small/medium,
companies
Large
companies
Pro agents (alliance)
(Tax accountant)
Death coverage,
medical insurance
markets
Salespersons
Financial institutions
independent agents
Tokyo
Market
Sales
Department
FP Consulting Department
Savings market
Banks, securities
companies
RM
(Reference) Establishment of “Dai-ichi Frontier Life” as a Subsidiary
Company for the Over the Counter Sales Business
Dai-ichi life established a subsidiary life insurance company in December 2006 that was the first in Japan to be fully financed
by a life insurance company. Accompanying the expansion of the savings-based market, the company was designed to
strengthen the over the counter sales business through banks and securities firms.
[Company Overview of Dai-ichi Frontier Life]
[Background to its Establishment]
• Alterations in the population composition
due to factors like the declining birthrate
and aging of society
• Expanding need for annuity products
due to insecurity over aging
• Growth of bank and securities firm channels
• Limits on the death
coverage market
• Expansion of the
savings-based market
⇒ Responding to the over
the counter sales business
(Over the Counter Sales Business) Business Characteristics
which Differ from Our Main Business
Main business
(Sales of insurance products by salespersons)
(Products)
Primarily coverage insurance
Mainly savings-based (shortening
of the development cycle)
Extremely vast number
of contracts
Small number of contracts
per product
Vast information processing
(Service)
Uniform service structure
throughout all of Japan
Banks and securities firms
Independent channels
(severe competition)
(Channel)
(System)
(Relation between Dai-ichi Frontier and Dai-ichi Life)
Over the counter sales
business
Channels exclusive to
one company
(No. of contracts)
• Established: December 1, 2006
• Capital: 185.0 billion yen (incl. reserve capital of 67.5 billion yen)
• Shareholder: Dai-Ichi Life Insurance Company, Limited (90%),
Sompo Japan Insurance Inc. (10%)
• Start of operations: October 1, 2007
• Products handled: Individual annuity insurance (from the outset of the start of operations)
Rapid development suited to the
product cycle
Service varies for each agent
The decision was made to establish a subsidiary company specializing in the
over the counter sales business that was separate from our main company
(Sales support)
Dai-ichi Life
(Clerical processing)
(Agent and representative
agreement)
• Sales support via a support unit
Dai-ichi Frontier
• Product development
• Insurance underwriting
• Operations
Through the establishment of a subsidiary company we have achieved “the provision of competitive products
suited to our customers’ needs and the unique characteristics of sales channels,” as well as “low cost, flexible operations”
23
24
Summary
25
Future Expansion (Life Insurance Industry)
Increasing our role of supplementing the social security system
Diversification of products and sales channels
owing to the diversification of lifestyles and needs
◇ Shrinking of the death coverage market
◇ Expansion of the health, annuities, nursing care, and
occupational disabilities markets
◇ Diversification of sales channels such as financial
institutions like banks and securities, stores, and mail-order
Intensifying competition, including that in peripheral industries
26
Future Expansion (Dai-ichi Life)
Becoming a life insurance company
that has the utmost support of its customers
Sustainable efforts to keep our competitive
advantage in the death coverage market
Further development into expanding markets
such as savings and the third sector
Investigation for advancement into
the life insurance markets of other countries
27
Priority Areas 1. : Response to the Saving Market
Dai-ichi life established a subsidiary life insurance company in December 2006 that was the first in Japan to be fully financed
by a life insurance company. Accompanying the expansion of the savings-based market, the company was designed to
strengthen the over the counter sales business through banks and securities firms. The operation started in October, 2007.
[Company Overview of Dai-ichi Frontier Life]
[Background to its Establishment]
• Changes in the population composition
• Expanding need for annuity products
• Growth of bank and securities firm channels
• Limits on the death
coverage market
• Expansion of the
savings-based market
⇒ Responding to the over
the counter sales business
(Over the Counter Sales Business) Business Characteristics
which Differ from Our Main Business
Main business
(Sales of insurance products by salespersons)
(Channel)
Channels exclusive to
one company
(Products)
Primarily coverage insurance
(No. of contracts)
Extremely vast number
of contracts
(System)
Vast information processing
(Service)
Uniform service structure
throughout all of Japan
• Established: December 1, 2006
• Capital: 185.0 billion yen (incl. reserve capital of 67.5 billion yen)
• Shareholder: Dai-Ichi Life Insurance Company, Limited (90%)
Sompo Japan Insurance Inc. (10%)
• Start of operations: October 1, 2007
• Products handled: Individual annuity insurance (from the outset of the start of operations)
(Relation between Dai-ichi Frontier and Dai-ichi Life)
Over the counter sales
business
Banks and securities firms
Independent channels
(severe competition)
Mainly savings-based (shortening
of the development cycle)
(Sales support)
(Clerical processing)
Small number of contracts
per product
Rapid development suited to the
product cycle
Service varies for each agent
Dai-ichi Life
(Agent and representative
agreement)
• Sales support via a support unit
The decision was made to establish a subsidiary company specializing in the
over the counter sales business that was separate from our main company
We have achieved “the provision of competitive products suited to the unique characteristics
of sales channels,” as well as “low cost, flexible operations”
Dai-ichi Frontier
• Product development
• Insurance underwriting
• Operations
Priority Areas 2. : Response to Overseas Markets
Signed a merger contract that established a
joint life insurance company with two major
banks in India, Bank of India (BOI) and
Union Bank of India (Union Bank) in Dec
2007.
Named Star-Union Dai-ichi Life, it started
operations in Feb 2009.
India
Vietnam
Acquired Vietnam’s life insurance
company “Bao Minh CMG” and started
business as Dai-ichi Life Insurance
Company of Vietnam in Jan 2007.
Started the life insurance business as
the first Japanese life insurance
company in Vietnam.
Australia
In May 2011 the local life insurance
company TOWER Australia became
a wholly owned subsidiary.
Thailand
Entered into a group reinsurance agreement
with Ocean Life Insurance Co. in Aug 2006.
Subsequently, after strengthening
relationships such as human interactions and
provision of know-how, established a
strategic business alliance in July 2008.
The Australian life insurance market
has expanded steadily as the country
has gone on to achieve favourable
economic growth.
28
29
30
＜Reference＞
Business Results (Individual Insurance)
Trends of Results (Policies in force, Sum insured in force,
premium in force converted to a yearly basis)
(Note) Shown for Individual Life Insurance + Individual Annuity
(Note) Include results of Dai-ichi Frontier Life Insurance
(1) Sum insured in force / Policies in force
(Trillion Yen)
500
Sum insured
(10,000
policies)
Policies in force
保有N
保有S
in force
1,298
1,267
1,258
1,300
1,266
1,243
1,233
1,243
250
1,200
190
182
2005
17年度
2006
18年度
175
167
2007
19年度
2008
20年度
159
153
148
0
1,100
2009
21年度
2010
22年度
2011
23年度
(FY)
(2) Premium in force converted to a yearly basis
(100 million Yen)
25,000
Individual Insurance
個保・第一分野
(First sector)
Individual Insurance
個保・第三分野
(Third sector)
Individual
個人年金
Annuity
21,487
21,617
21,979
3,297
4,259
4,569
5,149
4,927
4,948
5,066
5,150
21,335
21,311
21,097
20,965
2,323
2,616
2,858
4,710
4,826
4,888
15,000
14,302
13,869
13,351
12,741
12,280
11,982
11,680
2006
18年度
2007
19年度
2008
20年度
2009
21年度
2010
22年度
2011
23年度
5,000
2005
17年度
(FY)
31