Japan:General insurers to focus on climate change

Members of The General Insurance Association of Japan (GIAJ) will further focus their efforts on climate change in the current fiscal year ending 31 March 2022 (FY2021) as the issue presents a global and urgent challenge that requires bold initiatives from a medium to long-term perspective, says Mr Shinichi Hirose, the association's chairman.

In a statement issued earlier this month, Mr Hirose said that the GIAJ has begun since April 2021 to act to achieve the goals set out in the association's Ninth Mid-Term Business Plan. In this plan, the GIAJ has identified the following as its priority issues:

• development of a sustainable business environment;
• realisation of a disaster-resilient society, and
• improvement in general insurance literacy.

The Ninth Mid-Term Business Plan, which spans FY2021 to FY2023, takes into account what the GIAJ achieved under the Eighth Mid-Term Business Plan and the impact of COVID-19 on society.

Response to COVID-19

In his statement, Mr Hirose said that the GIAJ has set out its "Basic Policy for COVID-19 Control" and established a framework to address the disease. Member companies have been taking measures to prevent infection, such as by promoting remote working and non-face-to-face sales. They have also implemented special measures for customers affected by COVID-19, such as allowing a moratorium on the renewal of insurance contracts and premium payments. Furthermore, to cater to the growing interest and demand among customers for insurance products related to COVID-19, insurers are working to develop such products and provide information on new types of coverage.

Response to Nat CAT

In response to large-scale natural disasters such as the torrential rains in July 2020 and the earthquake off the coast of Fukushima and Miyagi Prefectures in 2021, Mr Hirose said that member companies endeavoured to make prompt and appropriate compensation while taking utmost precautions to prevent the spread of infections to customers in the affected regions.

Mr Hirose said, “Through our Natural Disaster Response Review Project Team, GIAJ and our member companies are carrying out detailed studies, focusing on industry-wide responses to wind and flood disasters, as well as the prevention of fraudulent claims. In addition, as this year marks the 10th anniversary of the Great East Japan Earthquake, we have strengthened our efforts to improve market penetration of earthquake insurance.”

For wind and flood disasters, the GIAJ has developed an industry-wide system which utilises satellite technology to quickly grasp the extent and depth of inundation of buildings. The GIAJ will continue to examine and discuss with the relevant authorities to further develop and expand the system so that it can be better prepared for severe flood disasters.

In addition, in cooperation with Yahoo Japan Corporation, the GIAJ has established a system that provides disaster-related information to customers in affected areas with push-notifications on smartphone applications and other means in the event of large-scale natural disasters. “We will continue to contribute to disaster prevention and mitigation by enhancing our communication capabilities through the use of digital technology, Mr Hirose said.

Standardisation of business operations

He pointed out that in July 2020, the GIAJ set up a special working group to resolve operational issues in the industry. Through the group's work, the association has been able to identify and find solutions to challenges faced in various operations such as concluding contracts, responding to accidents and making insurance payments. Leveraging on the work of the group, the GIAJ plans to launch a standardised system in FY2021 for general insurance premium deduction certificates as well as paperless procedures for exchanging co-insurance information among member companies.

As customer needs are expected to diversify further even in the post-COVID period, the GIAJ will identify and steadily establish business processes that are suitable for non-face-to-face, non-contact, and paperless operations while maintaining good customer experience and high-quality services.

Source: Asia Insurance Review