Japan:New GIAJ chairman outlines association's goals

Mr Shinichi Hirose, who was appointed chairman of the General Insurance Association of Japan (GIAJ) on 30 June, has set out several specific initiatives which the industry body would undertake.

The specific initiatives are set out in his statement whch is posted on the association's website. They include:

(1) Strengthening responses to natural disasters

The GIAJ aims to build a society more resilient to natural disasters by ensuring appropriate and prompt claims payment in any situation.

Mr Hirose said, “In December 2019, GIAJ established the “Natural Disaster Response Review Project Team” to study and resolve various industry issues relating to natural disaster response in recent years. The project team has already started discussing solutions to issues surrounding natural disasters, and we will identify areas which need further work and proceed accordingly.

“First, we plan to improve our insurance claims systems in case of large-scale natural disasters, such as creating smart phone apps that will enable policyholders to make claims promptly from their evacuation shelters. “Moreover, in order to provide prompt and proper insurance claims payments, we will continue to explore quick damage assessment from various perspectives, cooperate with both national and local governments to promote the use of hazard maps, and contribute to increase awareness of natural disaster prevention and mitigation among the citizens through contents created by GIAJ.”

(2) Improving financial and general insurance literacy

With the impact of COVID-19 as well as the increasing severity and frequency of natural disasters, social uncertainty is on the rise. In such circumstances, in order to ensure safety and security of the citizens and for corporations to actively engage in business, it is becoming increasingly important for citizens to properly understand risks and develop their ability to manage risks appropriately through the selection and use of insurance products (general insurance literacy).

Mr Hirose said, “We regard the improvement of the general insurance literacy of the citizens as our important role and will compile and offer essential information on the risks surrounding their lives, as well as their prevention and mitigation. “Furthermore, leveraging insights from COVID-19, we will provide useful information without face-to-face interaction to improve general insurance literacy, such as developing/updating a portal site and proactively utilising online learning and educational tools.

(3) Promoting efficiency through harmonisation and standardisation

In this era of accelerating technological advances, the insurance industry must incorporate new technologies and promote harmonisation and standardisation of processes provided by member companies, thereby improving work efficiency to offer more convenient services to customers.

Mr Hirose said, “During the fiscal year, we will discuss within GIAJ to improve systems in areas such as insurance products, insurance claims services, and administrative procedures. For example, we will discuss improving efficiency within the industry by standardising the issuing of insurance premium deduction certificates that are used for year-end adjustments and tax returns. Currently, the certificates are issued by each product, but through standardisation, the industry will benefit from operational efficiencies, and we will be able to achieve a higher level of convenience for customers.

“Moreover, to prevent the spread of COVID-19, with regard to Compulsory Automobile Liability Insurance (CALI), we have implemented special measures allowing a moratorium regarding amendments and cancellation processes as well as enabling them to be conducted by post, having previously only been available by meeting face-to face. We realise that some processes require review to adapt to the new lifestyle going forward and will explore potential improvements. “We will work continuously to review operational processes towards harmonisation and standardisation, identifying issues from a modern day viewpoint as well taking into account the mid to long- term challenges.”

(4) Work on various issues include:

Work regarding senior citizens and foreign nationals

GIAJ will enhance last year’s work and continue to raise awareness among senior citizens by providing relevant information on prevention of traffic accidents, and information tools for foreign nationals.

Work regarding cyber risks

GIAJ will continue activities to raise awareness to strengthen cyber security response for small and medium-sized enterprises through the "special webpage on cyber insurance" on the association's website. The risk of cyber attacks to insurance agents are also increasing, and GIAJ plans to widely engage in cyber security response for insurance agents.

Work regarding increased quality of agents’ sales practices

To support improvement in the quality of sales practices of agents, GIAJ created certification of "General Insurance Total Planner", the highest qualification of the "General Insurance College Course”, and there are more than 14,000 certified agents nationally. GIAJ will continue its work to raise the attractiveness of this certification scheme.

Work regarding prevention of fraudulent claims

GIAJ is working to raise awareness of fraudulent claims through the utilisation of fraud detection systems and partnering with the police to hold “general insurance crime prevention and response conferences”. GIAJ will continue to further upgrade the general industry's common database with the aim of eliminating insurance fraud and fraudulent claims that impair the soundness of the insurance system.

Work regarding consumer consultations, complaints, and dispute settlements

GIAJ operates the "General Insurance Counselling and ADR Centres" to provide customers with support, to handle complaints regarding general insurance, and to resolve disputes between customers and insurers. The Centres will continue to provide support in solving disputes between customers and insurers from a neutral and fair standpoint.

Appropriate response to international standards etc

Globalisation of the insurance market is progressing as well as overseas expansion of GIAJ members, and the association will continue engagement that will lead to harmonisation of international rules and reduction of trade barriers through various advocacy activities such as requests and recommendations to the International Association of Insurance Supervisors (IAIS), relevant ministries and the OECD, etc.

Activities to support the general insurance markets of emerging markets

GIAJ collaborates with relevant organisations and government bodies such as the Financial Services Agency, the General Insurance Rating Organization of Japan, and the General Insurance Institute of Japan, and engages in insurance-related technical cooperation that support financial infrastructure development in the Asian region. For the stable and sound development of general insurance markets in Asia, the association will continue to provide support that meets the needs of each country/region.

Source: Asia Insurance Review