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1、Dai-ichi Life Holdings,Inc.B y Y o u r S i d e,F o r L i f eI N T E G R A T E DR E P O R T 2 0 2 2Introduction61Sustainability&Management BaseAddressing Climate ChangeContents9Message from the CEOSeiji Inagaki,President and Representative DirectorMessage21Business Model and Value Creation ProcessVal
2、ue Creation25Value Co-creation StoryValue Creation79Sustainability&Management BaseIntroductionContentsEditorial PolicyGroup MissionA History of InnovationsGroup at a Glance12357MessageMessage from the CEOInitiatives to Reform Management Quality at Dai-ichi Life917ValueCreation StoryOur Long-Term Vis
3、ion and the Road Map to Its RealizationBusiness Model and Value Creation ProcessOur Approach to StakeholdersValue co-creation story 1 Using“connections”to make our customers happyValue co-creation story 2 Creating a sustainable society in harmony with society and the environmentMaterial Issues of th
4、e Dai-ichi Life GroupPotential opportunities/Risks and strategies to address them133Strategies&PerformanceProgress of the FY20212023 MMPCX Design StrategyVision for the CX Design StrategyProtectionRetirement,Savings,and Asset ManagementHealth and Medical CareEnhancing ConnectionsFour Expe
5、riential Values atOverseas Group CompaniesOverseas Business StrategyCFO Message/Finance and Capital StrategyFinancial and Nonfinancial Highlights35373945157Sustainabilityand Business FoundationSustainability and Business FoundationAddressing Climate Change:Disclosure Based on the TCFD Rec
6、ommendationsGFANZ Contributing to global climate change initiativesHuman Capital Management StrategiesInitiatives to Respect Human RightsSpecial Feature:Female Directors and Executives DiscussionDriving Innovation596GovernanceCorporate GovernanceDirectors Skill Matrix/The Succession Plan/
7、Developing the Next Generation of LeadersEvaluations of the Effectiveness of the Board of DirectorsOfficer RemunerationInternal Control System/Compliance/Risk Management/Group Tax Governance/IT Governance/Internal Audits/Shares Held for Strategic PurposesLeadership8991939597101DataIndustry DataGloba
8、l NetworkDomestic Life Insurance BusinessOverseas Insurance BusinessOther Business(Asset Management Business)Summary of Consolidated Group Business ResultsHistorical DataParticipation in External Initiatives/Evaluations by External PartiesOverview and Organization of the Insurance Holding Company Gl
9、ossary of TermsExecutive officer guarantee/Third-Party Warranty35Progress of theFY20212023 MMPStrategies&Performance51Message from the CFOTetsuya Kikuta,Representative Director and ChiefFinancial Officer(CFO)Strategies&PerformanceFemale Directors and Executives Discu
10、ssionSpecial Feature:Dai-ichi Life Holdings1IntroductionMessageValue CreationStoryStrategies&PerformanceSustainability and Business FoundationGovernanceDataGroup Mission,Vision,and Values/Progress of the FY20212023 MMPEditorial PolicyWebsite InformationDai-ichi Life Holdings Integrated Report is des
11、igned to inform customers,shareholders,investors,and other stakeholders of our efforts to solve social issues through our business and create sustainable value for our Group.In preparing the Integrated Report,we refer to the International Integrated Reporting Framework recommended by the IFRS Founda
12、tion,the Guidance for Collaborative Value Creation by the Ministry of Economy,Trade,and Industry,and the Sustainability Reporting Standards by the Global Reporting Initiative(GRI).To better communicate the value creation story in this years Integrated Report,we have enhanced our coverage of the valu
13、e creation process,while also including a special feature on human capital considering the growing interest in this topic.We have also expanded the section on climate change,one of the most important issues.What We Are Aiming for as a GroupSustainability/ESG informationShareholders and Investorshttp
14、s:/www.dai-ichi-life- Governance ReportBasic Approach to Corporate GovernanceBasic Policies on Internal ControlsReport on Responsible Investment ActivitiesSustainability ReportAddressing Climate Change:Responding to the TCFDSustainability Index ESG Information Index GRI Index SASB Information Index
15、Sustainable Development Goals(SDGs)ISO26000Financial Results and Management Briefing DocumentsBusiness ReportsAnnual Securities ReportBusiness and Other RisksSummary of AccountsFinancial Report (Financial and Business Outlook)EV ReportThis report constitutes disclosure materials(explanatory document
16、s on business and property status)prepared in accordance with Articles 271.25 and 272.40 of the Insurance Business Act and Articles 210.10.2 and 211.82 of the Enforcement Regulations of the Insurance Business Act.Standard InformationPositioning of This ReportManagement Policy and StoryFinancialNonfi
17、nancialInformation for Shareholders and InvestorsSustainability/ESG InformationIntegrated ReportPlease also see the information posted on our websiteIntegrated Report2IntroductionMessageValue CreationStoryStrategies&PerformanceSustainability and Business FoundationGovernanceDataProtect and improve t
18、he well-being of allPeople FirstBy your side,for lifeDai-ichis Social Responsibility CharterV i s i o nVa l u e sBrand Message M i s s i o n(DSR Charter)Since our establishment in Japan in 1902,the Dai-ichi Life Group has been committed to contributing to local communities by providing life insuranc
19、e,with customer-oriented service(putting customers first)as our basic management philosophy.As a lifelong partner to our customers and their loved ones,each group company contributes to peoples security and prosperity and to the development of local communities.In 2022,the Group will celebrate 120 y
20、ears since its founding.We hope to continue contributing to the well-being of all,including future generations,to enable them to lead healthy and prosperous lives with peace of mind.To this end,we will stand by our customers side even more than in the past by expanding our business in four domains o
21、f experiential values(protection,asset formation/succession,health and medical care and enhancing connections).Our goal of well-being of all will be achieved first and foremost through a sustainable society.In recent years,we have increased our efforts toward material issues related to ensuring loca
22、l and social sustainability and have made achieving a sustainable society a core part of our business operations.The Dai-ichi Life group has established the DSR Charter as a principle of corporate conduct to meet the expectations of customers,society,shareholders,investors,and employees,and contribu
23、te to the creation of a sustainable society.The Dai-ichi Life Groups Social Responsibility(DSR)is a unique framework for fulfilling our social responsibility to all stakeholders and enhancing the corporate value of the Dai-ichi Life Group by continuously improving management quality through a compan
24、y-wide PDCA.To be an insurance group with the highest level of customer support,we aim to always put people first.Group MissionBy your side,for lifewell-beingIntroductionDai-ichi Life Holdings3Integrated Report4IntroductionMessageValue CreationStoryStrategies&PerformanceSustainability and Business F
25、oundationGovernanceDataProviding the best experiential value(CX)to our customersA History of InnovationsEstablished in1902onward2010s1990s2000sFrom a listed company(new foundation)to a holding companyThe best rather thanthe largest.Life insurance for customers through mutual helpFrom QOL improvement
26、 towell-beingNumber of policies in force in 2021:15.62 millionDai-ichi Lifes in-force policies(From 2007 the total of the three domestic life insurance companies)Total Life Plan and Quality ManagementTo deliver the best products and services1902The first mutual company in Japan,Dai-ichi Mutual Life
27、Insurance Company was established with the aim of providing life insurance for customers in the spirit of mutual help.1932Amid an order for financial institutions to postpone payment of claims after the Great Kanto Earthquake(1923),the company gained credibility through the prompt payment of claims
28、to policyholders and increased the number of active policies,becoming the second-largest insurer in the industry.1935Established Hoseikai with the goal of treating and preventing tuberculosis,which was the main cause of death in Japan at the time.1950sThe company helped stabilize household finances
29、in the post-war period by providing protection-type insurance products for emergencies and made a social contribution in the areas of public health and measures against cardiovascular diseases(1950:“Health Culture Award”established;1959:Cardiovascular Research Institute established).1970FALIA(Founda
30、tion for Asian Life Insurance Assistance)established to increase support for life insurance in Asia.2010Became the first major life insurance company to list on the Tokyo Stock Exchange.2011 and 2015In 2011,Tower Australia Group(now TAL)in Australia became a wholly owned subsidiary,and in 2015,Prote
31、ctive in the United States became a subsidiary through a public offering,accelerating the expansion of the overseas insurance business and resulting in more dynamic and sustainable growth.2014Sompo Japan DIY Life Insurance(now NeoFirst Life Insurance)became a wholly owned subsidiary,establishing a d
32、omestic business framework with three life insurance companies that accurately met customer needs by providing the best products through the best channels.2016Transitioned to a holding company structure and a company with an Audit&Supervisory committee to enable flexible allocation of management res
33、ources and rapid decision-making,and to achieve sustainable growth through further group synergies.2018Incorporated the Sustainable Development Goals(SDGs)into the Medium-term Management Plan,aiming for growth through the provision of value that improves customers quality of life,including resolutio
34、n of social issues.1997In response to changes in the social structure and diversifying customer needs after the bursting of the bubble economy,launched the concept of“Total Life Plan”to provide customers with peace of mind throughout their lives(in 1999,we launched the industrys first“Waiver of Prem
35、ium Payment Rider”).1998 and 2000Formed alliances with the Industrial Bank of Japan(now Mizuho Financial Group)in 1998,and Yasuda Fire&Marine Insurance Company(now Sompo Japan Insurance Inc.)and American Family Life Insurance Company in 2000.2001Won the“Japan Quality Award”for the first time in the
36、financial and insurance industry for our“Total Life Plan”philosophy based on the“Customer First”principle.2006Seizing the opportunity afforded by the lifting of the ban on bank sales of insurance products,established Dai-ichi Frontier Life and began a multi-brand rollout in Japan to meet the growing
37、 savings needs of an aging society.2007Began overseas insurance business development in the Asia-Pacific region(Thailand,Australia,India,and Indonesia),beginning with expansion into Vietnam.2018 Introduced the industrys first“Health Checkup Discount(kenshin wari),”which offered a discount on premium
38、s through submission of health checkup results,raising customers awareness of their health.To help create added value that extends healthy life expectancy and improves quality of life,established“QOLead”to provide health and medical care promotion services using new technology.Also established Dai-i
39、chi Life Innovation Lab in Tokyo and Silicon Valley,U.S.A.,as a system to drive global innovation,as well as identify trends in advanced technologies and discover promising start-ups.2019 and 2021In 2019,Dai-ichi Life became the first life insurance company in Japan to participate in the Renewable E
40、nergy 100%(RE 100)initiative,which aims to procure 100%of electricity consumed in business activities from renewable energy sources.In 2021,we joined the Net Zero Asset Owner Alliance(NZAOA)and committed to the transition to a carbon-neutral investment portfolio.2021Established the“CX Design Strateg
41、y”to deliver the best customer experience(CX)to our customers as our core strategy,and launched“Digi-ho,”a service that allows customers to complete all procedures digitally through Dai-ichi Smart Small Amount&Short-Term Insurance.Launched“Mirashiru,”a website for communication with customers in the
42、 digital space.Think about whether what we are doing will delight the people around us,or be dismissed as something they can live without.Changing to protect principles and values which must remain the sameOur founder,Tsuneta Yano,devoted himself not only to the development of his company but also t
43、o making the life insurance business something that“the people of the world would find useful and convenient.”This principle has been passed down to us today as“customer first.”In the rapidly changing times ahead,even as our business expands beyond insurance and into global markets,we will continue
44、to demonstrate the spirit of our founder and strive to create what people demand in each new era.“Dai-ichi Seimei Kan”building completed in 1938.Sales staff(at that time)providing consulting services to customers.Became the first major life insurance company to list on the Tokyo Stock Exchange.Estab
45、lished the Dai-ichi Life Innovation Lab(Silicon Valley,U.S.A.).Expanded business globally in eight countries.20202000Plaque for the“Japan Quality Award”received in 2001.A secure future for every community we serve using the best of our local and global cap
46、abilities.IntroductionDai-ichi Life Holdings5Integrated Report6IntroductionMessageValue CreationStoryStrategies&PerformanceSustainability and Business FoundationGovernanceDataGroup at a GlanceOverseas Insurance BusinessGlobal insurance group with top-tier domestic market presence and operations in e
47、ight countriesMarket PresenceDomestic Life Insurance BusinessBusiness Segments and Group CompaniesDai-ichi LifeProtective(U.S.A.)Dai-ichi Life Myanmar(Myanmar)(Established 1902)(2015)(2020)Dai-ichi Frontier LifeTAL(Australia)Star Union Dai-ichi Life*2(India)(Established 2006)(2011)(2007)Neo First Li
48、feDai-ichi Life Vietnam(Vietnam)Panin Dai-ichi Life*2(Indonesia)(Established 2014)(2007)(2013)Dai-ichi Smart Small-amount,Short-term Insurance*1Dai-ichi Life Cambodia(Cambodia)Ocean Life*2(Thailand)(Established 2020)(2019)(2008)Overseas business in eight countries at various stages of development,fr
49、om developed countries(stable markets)to emerging countries(growth markets and early stage)Other Business(Asset Management Business)Dai-ichi Life Realty Asset Management*1(Established 2019)*1 Non-consolidated subsidiary *2 Equity method affiliatesProviding advanced asset management functions to supp
50、ort asset formationAsset Management One*2(Integrated 2016)Establishment of a“multi-brand,multi-channel”structure in which four companies with strengths in diverse products and channels complement each other in response to diversifying customer needs*3 Profit from other businesses includes the asset
51、management business,as well as from the company(holding company)and subsidiaries and affiliates that do not fall under either the domestic life insurance business or the overseas insurance business.Number of employees62,260Percentage of global employees13.3%Percentageof women inmanagerial posts(Japa
52、n)28.5%Diversity percentage(Japan)*25.6%*Percentage of non-male/new graduate/Japanese in managerial positionsEmployees of overseas group companies 8,268Number of sales representatives(Dai-ichi Life)41,470Group Human Capital That Support GrowthTotal consolidated assets65.8 trillionConsolidatednet ass
53、ets4.4 trillionConsolidatednet incomeGroupadjusted ROE8.0%Consolidated ordinary revenues8.2 trillionGroup adjusted profit296.1 billionGroup Assets and Profit ScaleMarket capitalization2.7 trillionGroup EEV7.1 trillionTotal shareholder return(TSR)+36(end of March 2021 vs.end of March 2022)Economic so
54、lvency ratio(ESR)227%Consolidated solvency margin ratio902.6%Ratings(as of July 31,2022)Dai-ichi Life HoldingsDai-ichi LifeA+(JCR)AA-(JCR,R&I,Fitch)A+(S&P,A.M.Best)Corporate ValueStrong and Stable Financial SoundnessMSCI ESG RatingsPRI(United Nations Principles for Responsible Investment)AssessmentS
55、elected as a Sustainability Yearbook Member 2022Group Adjusted Profit by SegmentDomestic life insurance business210.6 billion(71%)Overseasinsurance business83.0 billion(28%)Other business*32.3 billion(1%)296.1billionS&P Global Corporate Sustainability AssessmentAAIndustry Leading ESG RatingsU.S.A.Pr
56、otectiveLife insuranceAmount of policies in force13th largest(US$984 billion)Note:Domestic group companies totalInsurance premiums and other incomeNo.2 in JapanNumber of domestic customers11.53 millionStrong presence in the United States and the Asia-Pacific regionAustraliaTALProtection marketIn-for
57、ce policies annualized net premiumsNo.1(27.6%share)VietnamDai-ichi Life VietnamLife insurance marketPremium incomeNo.4(11.7%share)(No.3 in the private sector)Overseas Market PresenceDomestic Life Insurance Market Presence(Insurance premiums and other income 5.2 trillion)409.3 billionReceived the hig
58、hest rating of“A+”in four areas(Dai-ichi Life)FY2021As of December 31,2021FY2021Source:S&P Global Market IntelligenceSource:Vietnam Life Insurance AssociationSource:“Plan For Life”Note:Figures are as of FY2021,except where noted.IntroductionDai-ichi Life Holdings7Integrated Report8IntroductionMessag
59、eValue CreationStoryStrategies&PerformanceSustainability and Business FoundationGovernanceDataPresident and Representative Director(CEO)Dai-ichi Life Holdings,Inc.Changes in the business environment and the role of life insuranceMessage from theCEO We will transform our business model to earn trust
60、and empathy from stakeholders and realize the well-being of all and a sustainable society.Let me start with a review of fiscal 2021.The spread of COVID-19 continued throughout the period,and the Russia-Ukraine conflict began in the second half.It was a year in which a global social divide emerged th
61、at significantly affected our lives.The Ukrainian crisis is worrying and has developed into a human rights issue.We are now seeing rising prices in our everyday lives,partly due to global supply chain disruptions.During the spread of COVID-19,we saw further progress in social media and other digital
62、 communication technologies,giving us easy access to huge amounts of information.Meanwhile,it appears that social media encourages groups of people with specific views and values to come together.I believe this has exacerbated the divides between groups with different values.I see this as a major ch
63、ange in the external environment that will accelerate the diversification of peoples values and lead to business challenges for our company.However,I feel I made an important discovery during the pandemic.I discovered that our daily lives are supported by many essential workers.In the past,I had few
64、 opportunities to pay attention to their presence.Now,I have a renewed awareness that it is important for people to support each other,that society is built on such mutual support,and that it is vital for us to empathize with the weak.You might feel the same in some way.Mutual support is the origin
65、of life insurance,and the pandemic served to reaffirm the importance of such support to us as a life insurance company.Environmental changes during COVID-19 and discoveriesLife insurance is originally a business based on the spirit of sharing risk and mutual aid.I believe that preparing for risk is
66、important in bridging the economic and social divides that arise when risks materialize.To date,we have paid more than 100 billion yen of insurance benefits to policyholders in connection with COVID-19.This is only financial support.However,if these payments are of any help to the people receiving t
67、hem,life insurance is playing a role,helping people return to their normal lives and economic stability.Amid COVID-19,our staff at different locations across the country continued to closely serve customers.These activities do not always lead directly to revenue.However,our network is rooted in the
68、communities and that connection helps bridge social divides.Our network provides value to society that is unique to our business model.Role and social value of life insuranceTo continue our growth in the future,we need to heal the divides in society and operate a transparent business suited to the v
69、alues of todays customers and society.At the same time,we must center our business on the essential role of life insurance.Our past business model of providing standard services to the entire market has been successful so far,but nowadays this approach is not always acceptable to all generations.Tod
70、ays customers have access to all the information on the Internet.The information gap between customers(consumers)and us(the supplier)is narrower than it was in the past.Consequently,customers now seek more sophisticated and diversified products and services.In particular,the young people who will pl
71、ay a central role in the future are not only digital natives but also inclined to attach value connection and empathy with other people who have shared values.In such circumstances,COVID-19 accelerated the diversification of values and segmentation of risk-sharing groups.Going forward,we must flexib
72、ly enhance our products and services to reflect todays values and become a company chosen by customers.I am convinced that our efforts to closely serve individual customers throughout their live journeys and to deliver value to earn trust and empathy will bring joy and happiness to customers.In the
73、end,it will be economically beneficial for us as well.Business model that earns trust and empathy suited to the current eraDai-ichi Life Holdings9Integrated Report10IntroductionMessageValue CreationStoryStrategies&PerformanceSustainability and Business FoundationGovernanceDataMessage from theCEO man
74、ner.We provide economic support through protection and retirement,savings and asset management.We also offer our original psychological support from the perspectives of promoting health and enhancing connections.We understand that our close-knit economic and psychological services will contribute to
75、 the well-being of our customers.To be trusted and chosen by customers,we have designated this support as a major course of action.With Re-connect 2023,we aim to develop initiatives to deliver the four experiential values.P.35:Progress of the FY20212023 MMPFirst year of Re-connect 2023The CX Design
76、Strategy is the core of the Re-connect 2023 Medium-term Management Plan,which was launched in fiscal 2021.Its goal is to deliver a superior customer experience(CX).As a lifelong partner,we aim to foster customers well-being by providing four experiential values:protection,retirement,savings and asse
77、t management,health and medical care,and enhancing connections.Analyses show that money,health,and social connections are key assets for happiness and well-being in life.We believe that life insurance is the best business for providing them in a well-balanced Improving the well-being of customers th
78、rough four experiential valuesChanges brought by digitalizationDomestic Business StrategyFiscal 2021 was a year of establishing and promoting systems that will put our domestic business back on a medium-and long-term growth track.First,we developed“Mirashiru,”a digital platform for our CX Design Str
79、ategy.Dai-ichi Life launched the Mirashiru website in December 2021 to facilitate communication with customers in the digital space.The name Mirashiru was coined by combining mirai(future)and michi-shirube(guidepost).It represents our will to support people moving toward the future.Mirashiru offers
80、a wide variety of information about not only protection and asset formation but also healthcare and other everyday matters of interest.It is designed to personalize web pages for individual customers and increase convenience.In addition to chatting and online discussion,the site will enable Realizin
81、g OMO through the CX Design StrategyWe do not expect face-to-face contact points to vanish.Rather,we strive to realize our online-merges-with-offline(OMO)strategy.Material issuesWell-being of all people,including future generationsAchieving a sustainable society over the next 100 years,which is esse
82、ntial for realizing the well-being of all Material issues and the Medium-term Management PlanDomestic Business StrategyOverseas Business StrategyGroup Financial and Capital StrategySustainability and Business FoundationCustomersBusiness PartnersSocial EnvironmentEmployeesShareholdersStrategies based
83、 on material issuesUntil 2023(period of the Medium-term Management Plan)Material issues concerned with the four elements of value in CXMaterial issues related to ensuring the continuity of communities and societyDelivering optimal CX from individual customers perspectivesPost-retirement life with pe
84、ace of mind in the 100-year life eraRetirement,Savings and Asset ManagementStabilization of livelihoods through the ubiquity of insurance and other productsProtectionEnabling job satisfactionRegional developmentPromoting good healthfor all peopleHealth and Medical Care Developing safe,secure,and com
85、fortable communitiesEnhancing ConnectionsCreating cutting-edge technologies that increase peace of mindIncreasing the efficiency of energy usePromoting clean energyEmpowering womenContributing to the development of society through responsible investing and lendingEnsuring the human rights of all peo
86、pleImproving corporate governance and risk managementResponding to climate changepeople to connect with the individual web pages of our Total Life Plan Designers in the second half of fiscal 2022.This will pave the way for everyday online communication with more customers.We will use information on
87、customers interests and other data collected from the website to develop new products and services.The fact is that COVID-19 led to advances in digital technology and a decline in face-to-face interactions with customers.However,I do not think face-to-face contact will disappear from the life insura
88、nce business.It is difficult to completely replace the human ability to understand and empathize with the difficulties that customers face with digital technologies.We are striving to realize OMO,the integration of online(digital)and offline(real-world)operations.P.37:CX Design StrategyTransforming
89、our Total Life Plan Designers channel,which supports our CX Design Strategy,is one of the significant changes in our domestic business.In the past,our policy was to employ as many employees as possible to support customers throughout Japan.From fiscal 2021,under the head quarter leadership we shifte
90、d to a more selective recruitment controlling the number and timing of people being hired,placing greater emphasis on peoples basic capabilities and aptitude.In addition,in fiscal 2022,we introduced a new training program with the establishment of the Career College,which is dedicated to initial tra
91、ining.We will also improve ongoing training for existing Total Life Plan Designers.We will actively communicate online to massively improve the quality and duration of training to provide a more advanced and uniform education.Besides,to support recruiting and the training of inexperienced staff,mean
92、while,we will significantly revise our salary system in fiscal 2022.Under the former system,salaries varied significantly depending on sales performance.Under the new system,the percentage of the fixed salary portion is Transformation of the Total Life Plan Designers ChannelWith digitalization,we la
93、unched the“Digi-ho”brand in April 2021.During the year,Dai-ichi Smart Small-amount and Short-term Insurance launched its first product,“Coronavirus Mini-Support Insurance(a specific infectious disease insurance policy)”covering COVID-19.It attracted more than 160,000 applications in January 2022 alo
94、ne as Japan experienced the sixth wave of COVID-19.In the same month,Dai-ichi Life sold around 80,000 new policies.In other words,Dai-ichi Smart,which was just one year old,sold twice as many policies as Dai-ichi Life.While these results were supported by a rush in demand,our analyses also show that
95、 this product clearly highlighted mutual-aid relationships whereby self-employed and other people who would lose income if they became infected shared the risk with people in similar circumstances.It was a new attempt to apply dynamic pricing to insurance premiums,which vary depending on the number
96、of new confirmed infections.Digital technologies enable us to reduce the initial costs of such insurance products,making it possible to set the breakeven critical mass at a low level.This is a significant change.Meanwhile,we also recognized the difficulty of risk control,and decided to stop sales of
97、 this specific infectious disease insurance policy to new customers in July 2022.From a future business strategy standpoint,however,we learned that when we release a new product that best suits customers with specific needs at the right time in the right manner,it becomes popular surprisingly quickl
98、y.This was a valuable lesson.In addition,the fact that application procedures can easily be completed on a smartphone,our contact points with the younger generation have increased.Some of our specific infectious disease insurance policyholders went on to purchase Dai-ichi Lifes comprehensive insuran
99、ce policies.This demonstrated that“Digi-ho”has the potential to act as a gateway to more comprehensive insurance products.While some are still in the experimental phase,we are also engaged in other efforts to incorporate digital technologies.Leveraging our strength in face-to-face consulting,we will
100、 work to create experiential values utilizing more convenient digital solutions.Dai-ichi Life Holdings11Integrated Report12IntroductionMessageValue CreationStoryStrategies&PerformanceSustainability and Business FoundationGovernanceDataSustainability is now a value shared globally by people of every
101、generation.Among many issues,climate change was cited as the greatest risk at the World Economic Forum held in Davos last year.The Glasgow Financial Alliance for Net Zero(GFANZ)was officially established at the COP26 UN Climate Change Conference held in November 2021.As the only member from Asia,I j
102、oined its CEO Principals Group,which consists of leaders from 18 financial institutions around the world.Through GFANZ,I witnessed the enthusiasm of European and U.S.financial institutions,which are strongly committed to achieving net zero as a matter of social responsibility.The event gave me a fir
103、sthand look at the important roles we must play.Japans life insurance industry holds nearly 410 trillion yen of assets under management and contributes to industrial development and economic revitalization through investing and lending.As institutional Message from theCEO When reviewing our business
104、 portfolio from the perspective of profit composition,we foresee that the share of our profits from our growing overseas business will undoubtedly expand,surpassing 50%in the long term.In addition to developed countries,we believe that emerging nations will also make greater contributions to group p
105、rofit.However,the essence of our business portfolio does not lie solely in simple share of profit.The risk profile,or the composition of the risks involved in capital investments to earn profit,is also important.Reducing market-related risks has led to steady improvements in our risk profile.Current
106、ly,overseas interest rates are climbing sharply,and there are signs that domestic interest rates could change.Without depending too much on market outlooks,we will continue working steadily to reduce market-related risks.Also,we will proactively take insurance risks and expand fee-related businesses
107、 with limited risks in Japan and abroad.We are striving to achieve a 50:50 ratio of insurance risks to market-related risks to be comparable to other global insurance companies.P.51:CFO MessageTransforming our business portfolio and risk profileOutside of Japan,there are as many as 1.7 billion peopl
108、e with poor access to financial services,mainly in emerging countries,and the insurance penetration rate is low as well.Given the aging population and falling birth rate in Japan,we strongly believe that we should proactively fulfill our mission outside of Japan as well.Since entering overseas marke
109、ts in 2007,we have been aiming to operate businesses that suit local needs.In fiscal 2021,our subsidiary TAL decided to acquire Westpac Life based in Australia.This solidified TALs position as the largest market share holder in Australias protection domain.Another subsidiary,Protective Life Corporat
110、ion,also made AUL,a company based in the United States,into a subsidiary in its asset protection business.In fast-growing Vietnam,our strategy of diversifying sales channels to include agents and bancassurance produced positive results.We are now among the top three market share holders among privat
111、e companies in that nation.In fiscal 2021,the adjusted profit of our overseas business reached a record-high figure,although it was partly due to one-time items.Only 15 years after it started,the overseas business has now grown to earn at least a quarter of our group total profit.In the overseas cou
112、ntries where we operate,the demographic composition is expected to remain unchanged even until 2050 in the wake of ongoing population growth.The demographic distribution in those countries will stay bell-shaped,with those in their 30s and younger occupying the center of gravity like in Japan during
113、its economic growth.Therefore,we believe there is ample room in overseas markets to provide insurance and achieve future growth.In both Japan and overseas,we will extensively provide four experiential valuesprotection,retirement/savings and asset management,health and medical care,and enhancing conn
114、ectionsto drive future growth.P.48:Creation of four experiential values in the overseas businessP.49:Overseas Business StrategyOverseas Business StrategyExtensively providing four experiential values outside of JapanStrengthening foundations to support our financial and capital strategiesStrengtheni
115、ng sustainable foundationsWe will contribute to increase presence of Asia and Japan in realizing a net-zero society.Our capital and financial strategies have evolved significantly into“capital circulation management.”Based on dialogue with shareholders and other investors over the past year,I feel w
116、e have received positive overall feedback,including about future expectations.In particular,Dai-ichi Lifes reduction of market-related risks marked a high achievement rate against the target for the three years of the Medium-term Management Plan.We effectively used freed-up capital from such risk re
117、duction to Group Financial and Capital StrategiesCapital circulation management emphasizing stable creation and utilization of capital and cashmuch higher for the first five years after recruitment,and salary levels are also higher than in the past.Our aim here is to secure competent employees at th
118、e recruitment phase and create an environment during initial training where new hires can concentrate on developing skills and building trust-based customer relationships with peace of mind.Since this is an important business transformation on an unprecedented scale,it will take time until its tangi
119、ble effects are seen.We will work to increase the number of skilled Total Life Plan Designers to steadily expand our customer base and achieve sales results and personal efficiency that exceed pre-COVID-19 levels.The reform of management quality to eliminate monetary fraud continues to be one of Dai
120、-ichi Lifes top priority management issues.I am bitterly regretful that a new fraud was revealed in fiscal 2021.In response,we have established a new working group to carry out more fundamental efforts.All our officers and employees will profoundly understand the significance of these efforts and im
121、plement them without fail.In so doing,we will build an organization to ensure that we can earn the confidence of our customers.In fiscal 2021,we introduced two new key performance indicators.One is NPS(Net Promoter Score),which reflects our customers willingness to recommend us to others.The other i
122、s the number of customers.We monitor not only the overall NPS score of the Company but also evaluate each daily contact point with customers and incorporate our findings into our sales activities.In the process,we will the improve the experiential values we provide based on the opinions of our custo
123、mers.Currently,our NPS score is at a mid-industry level.We will aim to improve this score to be in the top range and consequently increase the number of customers.P.17:Initiatives to Reform Management Quality at Dai-ichi LifeP.39:Vision for CX Design Strategymake disciplined strategic investments in
124、 future growth and increase shareholder payouts.As a result,on an accounting basis,adjusted return on equity(ROE)remained at a constant level.The beta of our shares in the stock market,which is an element of the cost of capital,was found to be trending downward.Return on embedded value(ROEV),which i
125、ndicates capital efficiency as economic value,remained at a low level following changes in financial market conditions and a revision of insurance requirements.However,stock valuation indicators,such as the price-to-embedded value(P/EV)ratio and the price-to-book-value ratio(PBR),are still below one
126、 time.We will continue working to reduce risk to lower the cost of capital and adopt capital circulation management to quickly ensure that capital efficiency remains constantly higher than the cost of capital.investors,life insurers play a significant role in the Japanese economy.As a representative
127、 of the industry,I will lead efforts in cooperation with companies in each country to help increase the presence of Asia and Japan in realizing a net-zero society.Achieving sustainability of the social environment also requires us to address recent changes in customer needs.In future business activi
128、ties and the provision of goods and Dai-ichi Life Holdings13Integrated Report14IntroductionMessageValue CreationStoryStrategies&PerformanceSustainability and Business FoundationGovernanceDataConclusionDetermination to transform the business modelAs I have said,customers values have been changing dra
129、matically with the times,and COVID-19 has caused such change to accelerate.We already see disruptions in other industries,so the wave of change will surely come to the insurance industry someday.Our founder said,“Consider whether people will be pleased with what we do or if they will find it unneces
130、sary.A business that people find useful and convenient is bound to have its value recognized,and people will greatly develop that business.That is precisely why business is something that we do for the sake of people.”These words have been passed down in our Company,and I keep them close to my heart
131、 in todays fast-changing times.The insurance business is a stock-type business that generates stable profit from existing policies in force.Accordingly,changes in external conditions will not cause profit to decline suddenly.However,it is undeniable that in some aspects of our business we are less s
132、ensitive to changes in the environment.In this“new normal”world caused by COVID-19,we will not adhere too closely to our past traditions or successful experiences.Rather,we will respect them and change them for the better.We at the Dai-ichi Life Group will work as one in our ongoing quest to transfo
133、rm ourselves in brand-new ways.I look forward to your continued support.Message from theCEO To survive in this era of drastic changes,we need to leverage our own strengths to ensure that our corporate management is resilient.Saying that our human capital is everything is not an exaggeration.Today,it
134、 is difficult to predict what will lead to success.A conventional homogeneous group might misjudge their course of action.Therefore,ensuring diversity is important to prevent biased management decision-making.For instance,in our overseas business,leaders in different countries respect each other,lea
135、rn from each other,and grow together through their regular discussions.Openly sharing information about their companies with others enables them to learn from practices in other regions and share different ideas and opinions.This way,they produce synergies from learning based on diversity.No busines
136、s can permanently demonstrate its significance without a corporate culture in which employees with different views and strengths respect one another and try new things,unbound by conventional practices.In addition to enhance the development of females in managerial positions,we have defined the rati
137、o of“those who are not male,new graduates,and/or Japanese citizens”as an indicator for diversity.We will work to increase this indicator in a bid to increase the diversity of employees.We are striving to entrench an organizational culture in which members respect each other,listen to differing opini
138、ons,and always explore the best outcomes.I believe that visionary management is the ideal form of organizational leadership with respect to increasing employee engagement and enabling employees to further demonstrate their individual attributes.French poet Antoine de Saint-Exupry wrote,“If you want
139、to build a ship,dont drum up the men to gather wood,divide the work,and give orders.Instead,teach them to yearn for the vast and endless sea.”Adhering to this philosophy,we emphasize management that communicates vision,delegates authority,and maximizes the strengths of individuals,rather than having
140、 supervisors dictate how to cut the trees or which trees to cut.I directly share these and other thoughts with employees on our intranet site,“#”(#SeijisWords).We encourage employees and motivate them to work independently,instead of giving them orders and instructions.With this approach,we hope to
141、promote human capital management and foster an open corporate culture.P.71:Human Capital Management StrategiesEnsuring diversity is vital to enabling unbiased management decision-making and instilling a challenge-oriented corporate culture.Increasing the diversity of our human capital and cultivatin
142、g a proactive corporate cultureLooking further aheadToday,a new concept of stakeholder capitalism has been spreading as a reaction to the excessive financial capitalism of the past,which led eventually to human rights violations and the destruction of natural capital.In our Annual Report 2021,I used
143、 the expression“trade-on”to describe our commitment to achieving a balance of interests.This means investing in human capital while fulfilling our responsibilities to nature and giving back our investment returns to both shareholders and employees.Our duties vary depending on the stakeholder,but the
144、re is no clearly superior or inferior stakeholder.Based on strong values,we should seek a future form of capitalism in which we will create value that equally benefits all stakeholders.As I mentioned at the beginning,life insurance is originally a business based on risk sharing and mutual aid.One of
145、 its roles is bridging economic and social divides.Our Companys foundation is based on people mutually supporting each other and our relationships with customers,local communities,and society.Our business is built on our employees who provide peace of mind in the form of life insurance,our business
146、partners who support our operations,our shareholders who provide necessary capital,the global environment needed for business continuity,and the connections between them all.The new stakeholder capitalism is consistent with our business model.Trust and empathy with all stakeholders will lead to coll
147、aborative new value creation.To earn such trust and empathy,we will seek to ensure the transparency of business management.For this purpose,we must propose insurance products and services in a timely manner that best suits the diverse needs of customers.They must have easy-to-understand pricing and
148、be transparent in the payment of claims and other benefits.We cannot earn real empathy unless we practice responsible asset management that fosters the sustainability of the global environment,community,and society while maintaining the promised interest rate.This is my impression of a sustainable f
149、orm of our business.I will put it into practice so that our employees and business partners can empathize with our aspirations based on our social values.At the same time,I will strive to explain our road map for achieving both social and economic value to shareholders with a high degree of transpar
150、ency.Creating values in collaboration with stakeholdersservices,it will be vital to ensure business ethics and transparency.In the case of life insurance,for example,this refers to the ethical aspects and transparency of how we deploy and invest the insurance premiums we collect from customers.It ca
151、n be compared to respect for human rights in manufacturers supply chains.By protecting the planet through our business activities,we can leave a sound environment for future generations,eliminate economic inequality between generations,and establish a society that recognizes peoples individuality an
152、d respects their human rights.We believe that our efforts,based on our values,will benefit our customers and serve their purposes.To date,the Group has actively pursued its cause of ESG-oriented investing and lending.Based on this cause,we will continue actively disseminating information on our acti
153、ons in a wider range of areas.P.61:Addressing Climate Change:Disclosure Based on the TCFD Recommendations P.69:GFANZ:Contributing to global climate change initiativesDai-ichi Life Holdings15Integrated Report16IntroductionMessageValue CreationStoryStrategies&PerformanceSustainability and Business Fou
154、ndationGovernanceDataInitiatives to Reform Management Quality at Dai-ichi LifeSince October 2020,eight cases of monetary fraud have come to light at Dai-ichi Life,which is a breach of trust that we take extremely seriously as a life insurance company that is supposed to be close to and support the l
155、ives of our customers.We consider it our top priority to sincerely engage with customers who were negatively affected by this,to strengthen our management and supervision systems,and to reform our corporate culture.As such,we will continue to implement and realize various drastic initiatives to elim
156、inate fraud through the company-wide cross-sectional project,the Business Management Quality Reform Task Force,led by the President.Review of the Business Management Quality Reform Task Force and challengesFiscal 2022 initiatives to reform management qualityStrengthening the governance of the Dai-ic
157、hi Life GroupDai-ichi Life established the Management Quality Reform Headquarters and started the Business Management Quality Reform Task Force in December 2020.First,we sent out individual notifications and made outbound calls to verify contracts at risk of damage similar to the fraud cases.In fisc
158、al 2021,we expanded the scope of our investigations to cover about total 1.2 million contracts.After the investigations,we conducted notifications by enclosing a notice in the Total Life Plan reports that we send out to customers about their contracts.In this way,we notified a total of 7.47 million
159、customers to monitor their contract information carefully.Moreover,we strengthened the rule that prohibits receiving money from customers and enhanced our supervision and checking functions,for example,by establishing the Compliance Analysis Office to detect any sign of fraud.In addition,we have rev
160、ised our systems that might encourage a sense of privilege as a person with excellent sales performance and implemented concrete measures to promote education and such,for example,by reviewing the positions and titles of sales representatives,improving the working environment,conducting training pro
161、grams for persons with excellent performance based on the various causes of fraud and conducting assessments from customers perspective.However,I am bitterly regretful that a new instance of fraud was revealed in fiscal 2021.We therefore further strengthened our investigations to check whether simil
162、ar misconduct still exists.In addition,we established the Senior Customer Working Group in the task force to verify contracts with senior customers and recommended that they register for the contract information sharing system that allows us to provide their family members with contract information,
163、thereby ensuring peace of mind for our customers.Dai-ichi Life will continue to make company-wide efforts to prevent recurrences,further ensure the effectiveness of that,and recognize stronger internal control as a task to be addressed.The occurrence of cases of monetary fraud at Dai-ichi Life Insur
164、ance,a core subsidiary in Japan,is a serious issue that greatly undermines the social trust that the Group has cultivated over its history in Japan and overseas.The Company(Dai-ichi Life Holdings,Inc.)has been continuously monitoring the situation at Dai-ichi Life Insurance to see if there is steady
165、 progress toward establishing a system for the eradication of cases of monetary fraud and initiatives to reform its corporate culture,as well as whether the internal control system through three defensive lines(business divisions,indirect and administrative divisions,and an internal audit division)i
166、s sufficiently strengthened.In fiscal 2021,the Companys Board of Directors received a total of seven reports and held numerous discussions,including opportunities to exchange opinions with the Audit&Supervisory Committee and the Board of Directors.We will continue to pay close attention to initiativ
167、es aimed at further ensuring effectiveness,strengthening internal controls,and implementing prerequisite reforms of the corporate culture,to strengthen our governance together with Dai-ichi Life.Revising the sales representative system and management1Reforming recruitment management,the salary syste
168、m,and training programsStarting with the recruitment of new sales representatives in fiscal 2021,we have shifted the recruitment cycle from monthly hires to quarterly hires controlled by headquarters to manage the number of recruits and ensure adequate time for assessing new hires for further improv
169、ement of our human resources.Taking this further in fiscal 2022,we introduced quantitative assessment for basic business skills and professional suitability,thereby making our hiring criteria more stringent.For the salary system,we raised and stabilized salary levels for first five years after recru
170、itment,started from fiscal 2022,thus allowing excellent new hires who will be responsible for the next generation to join the company and work without worries toward becoming sales representatives who generate and embody customer experience(CX)value along with learning necessary literacies and skill
171、s that contribute to customer satisfaction.Regarding training programs,the first year after recruitment is regarded as an initial training period without sales result requirements.We thoroughly implement training with a new curriculum that also emphasizes business philosophy during a sufficiently lo
172、ng training period.Revising sales processes and target managementIn terms of sales processes,we revised the Total Life Plan simulation that is used when consulting with customers to further improve customer satisfaction and make suitable product proposals.Providing the New Total Life Plan to custome
173、rs is mandatory.In fiscal 2022,in addition to defining compliance-related indicators as the most important items in organizational evaluations,we do not set specific performance targets from the top down but rather operate from the bottom up where Total Life Plan Designers think about their career p
174、lan and set goals for themselves.We also reflect qualitative efforts that are customer-oriented in the extra pay,aiming for a condition that allows individuals and the organization to proactively and positively engage in growth and improvement.(P.39 Vision for CX Design Strategy)Returning to our pri
175、nciple of“Customer First,”Dai-ichi Life is advancing initiatives to train Total Life Plan Designers whom our customers want to choose for“By your side,for life.”We are advancing the following initiatives so that senior customers can relievedly enter contracts and take procedures.Considering the case
176、s of fraud that have occurred,we conducted a questionnaire survey for all employees and interviews for some,the results clearly showing some challenges such as“too much emphasis on results,”“being too inward-facing,”“tendency to let sleeping dogs lie,”and“bad atmosphere between occupations and organ
177、izations.”We are conducting the following initiatives to improve the corporate culture.Enhancing service for senior customers2Initiatives to improve corporate culture3Recommendation to register for the contract information sharing system and enhanced after-sales follow-upSince February 2022,we have
178、encouraged senior customers to register in the contract information sharing system where their family members can receive information on contract contents.Moreover,we will continue to promote after-sales follow-up for customers including seniors,such as regular contract checkup for peace of mind wit
179、h the Total Life Plan Report sent out every year as well as appropriate information about the reliable receipt of insurance claims and benefits and various services.Revising application age limitsWe have already revised the sales and solicitation rules for contracts where the policyholder is 70 or o
180、lder since October 2021 so that the presence of children and grandchildren is generally mandatory at the time of application.In addition,we lowered the upper age limit for some products in July 2022.By having customers consider and prepare for lifetime protection and retirement at an early stage,we
181、aim as much as possible to eliminate the burden of procedures accompanying changes in contract contents and payment of additional insurance premiums after becoming a senior as well as situations that tend to occur when considering insurance at a senior age that lead to queries such as“I do not remem
182、ber reviewing the contract”and“It is different from the contract contents that I expected,”thus enabling better customer satisfaction.Holding town hall meetings(dialogue between management and employees)From May to July 2021,we held 56 town hall meetings where Dai-ichi Lifes management team,includin
183、g our executives,and employees engaged in dialogue.Since then,we have continued to set up opportunities for management and employees to exchange opinions throughout the fiscal year,and we have been actively and continuously discussing how we want the company to be.Introducing an engagement survey to
184、 reform employee awarenessIn August 2021,we introduced an engagement survey to grasp the state of all employees and each organization in a more visual form,confirming the dissemination of awareness changes among employees and considering initiatives for drastic improvements.Based on the direct opini
185、ons of employees,Dai-ichi Life aims to be an organization where all employees can play an active role together with their colleagues with pride and motivation,as well as a place where employees respect and enhance each others well-being.We set the corporate culture reform initiatives as major manage
186、ment evaluation indicators.We will review the target management,evaluations,remuneration,and communication structure,and promote continuous initiatives to reform business models and improve management leadership as part of the corporate culture reform.(P.71 Human Capital Management Strategies)Messag
187、eDai-ichi Life Holdings17Integrated Report18IntroductionMessageValue CreationStoryStrategies&PerformanceSustainability and Business FoundationGovernanceData20220Securing fundamentals for growth and completion of public listingAchievementsAfter the Great East Japan Earthquake(2011),contrib
188、uted to the rebuilding and growth of Japan through reliable payment of insurance benefits and various special measures to fulfill our role as a life insurance companyImproved operating expense efficiencies through a task force for optimizing and streamlining businessIssuesResponding to intensified c
189、ompetition in the Japanese market;accelerating overseas expansion;ensuring financial soundness as a global insurance groupAchievementsStrengthened our presence in the Japanese market through enhancement of the product and service lineup(Dai-ichi Frontier Life became a market leader in the Japanese b
190、ancassurance market)Provided a significant foothold for expanding the profit contribution from overseas business with the acquisition of Protective in the United StatesIssuesDeveloping a new strategy for achieving sustainable growth;expanding business foundationsMaintaining a sufficient capital posi
191、tion given upcoming international regulations;enhancing shareholder returns20152017Pursuing Organic Growth at Each Business Based on the Global Business FoundationsToward Making Greater Advances and Achieving Sustainable Growth(in billions)(in billions)3,341.94,294.75,987.64,646.15,495.46,094.15,936
192、.56,971.17,150.95,621.92020012(FY)2020012(FY)(%)2020012(FY)Adjusted ProfitIn addition to stable profit generation in the domestic life insurance business,there is an increasing profit contribution from
193、 overseas insurance business expansion in developed countries such as the United States and Australia(including Protective in the United States)and in emerging Asian countries.As a result,group adjusted profit,which determines the funds to be paid to shareholders,is increasing steadily.EEVThrough th
194、e acquisition of new business from our domestic business framework with three life insurance companies,and the proactive expansion of our overseas insurance business,we have steadily accumulated corporate value despite fluctuations in the economic environment.As a result,EEV,an indicator of corporat
195、e value,has more than doubled in the past 10 years.In-Force Business Annualized Net PremiumsWe have established a domestic business framework with three life insurance companies to meet diversifying customer needs,with Dai-ichi Life,which is at the core of the domestic life insurance business;Dai-ic
196、hi Frontier Life,which is a market leader in the Japanese bancassurance market;and Neo First Life,which since opening has provided products mainly through its agency base.We are maintaining the expansion of our topline through proactive global expansion.Economic Solvency RatioAlthough temporarily af
197、fected by the introduction of negative interest rates in Japan in fiscal 2015,we are steadily accumulating economic value,despite the fluctuating global economic and financial environment,while endeavoring to ensure our financial soundness through continuous reduction of market-related risk,and we h
198、ave maintained the economic solvency ratio(ESR),which is an indicator of financial soundness,at a stable level.20142021100.0116.0214.7204.6210.1243.2236.3274.5282.8296.1(in billions)2020012(FY)Market leader in the bancassurance marketMore than 7 trillionOpening201520
199、15U.S.A.Protective became a subsidiary2,425.7 2,560.33,217.03,396.23,633.4 3,671.13,955.8 3,969.74,054.64,234.3DomesticOverseasDomesticOverseas5203227Introduction of negative interest rates20132014Since incorporation,our Group has built a solid business foundation while contrib
200、uting to the resolution of issues faced by customers and society through business operations based on a medium-term management plan that considers the social issues and business environment of the day.We will continue to contribute to the well-being of all by working to solve issues faced by our cus
201、tomers and society as a“lifelong partner.”Value up 201020082010AchievementsOvercame financial instability(global financial crisis)and achieved demutualization and public listing in April 2010Strengthened initiatives for third-sector products and savings-type products as growth areas in Japan and pro
202、moted overseas expansion into the Asia-Pacific regionIssuesStrengthening of the financial foundation appropriate to a listed company;improving capital efficiency;establishing an internal risk control systemSuccess Achieving recoveryand growthToward making greater advancesAchieving sustain
203、able value creationAchievementsStrengthened the capability of strategy execution through transition to a holding company structure,which enables flexible allocation of management resources and rapid decision-making at each Group companyEstablished a domestic business framework with three life insura
204、nce companies(start of business at Neo First Life)Accelerated overseas business expansion and expanded profit contributionIssuesAchieving cash flow management appropriate to a holding company structure;strengthening ERM with a view to prolonged low-interest market conditionsToward growth through con
205、tribution to improving QOLGroup VisionProtect and improve the well-being of all Realize the well-being of all Achieve a sustainable society over the next 100 yearsStriving for sustainable growth through four key strategic initiativesDomestic BusinessExpand existing business while exploring opportuni
206、ties beyond insuranceOverseas BusinessBuild a business portfolio that drives growthFinancial CapitalImprove the financial standing and disciplined capital managementSustainability&Business FoundationCreate a universally bright future by fulfilling our part in enhancing sustainabilityToward transform
207、ation with a stronger bondOur Long-Term Vision and Realization Road MapReturn to Growth TrajectoryAchievementsStrengthened the ability to reach a diverse customer base through the diversification of sales channels and product supply under a domestic business framework with three life insurance compa
208、nies;started expansion to new markets such as healthcare and small-amount and short-term insurance productsMaintained growth in the overseas business;achieved medium-to long-term target levels of financial soundness mainly through market risk reduction initiativesIssuesRadically transforming the dom
209、estic insurance business based on each customers perspective;responding to accelerated changes in societyOvercoming low capital efficiency and the globalization of group operationsChanges in Key Performance IndicatorsNote:Figures up to fiscal 2013 are based on pre-revision standards.Long-Term Vision
210、Value CreationDai-ichi Life Holdings19Integrated Report20ERM Financial and Capital StrategyP.51Sustainability and Business FoundationP.59P.89Corporate GovernanceDai-ichi Life Group VisionProtect and improve the well-being of allMain Management AssetsValue Co-creation with StakeholdersAbility to supp
211、ort well-being(financial capital)Human capital involved in well-beingAbundant human capital to deliver well-being to customers Specialized Total Life Plan Designers(Japan):approx.37,000 Agencies(Japan):4,520High-level expertise and experience Number of qualified CFPs:403 Number of qualified AFPs:2,2
212、72 MDRT members:170 in Japan,225 overseas Number of qualified actuaries:116Group Employees Group employees at all business locations:approx.62,000 Overseas group employees:approx.8,000(13%)Employees with overseas experience:502Ability to develop insurance products that meet the needs of the times(pa
213、st and present)Ability to create synergy by utilizing domestic and overseas group networks 110 subsidiaries and 29 affiliatesKnowledge and experience of insurance company mergers and acquisitions in the U.S.market Acquisition cases by Protective:59Medical big data More than 1.2 billion records(anony
214、mized)Innovation and well-being research through industry-academia collaboration Industry-academia collaboration and joint research with seven universities and institutionsCustomer base in nine countries including Japan Number of customers(Japan):approx.11.53 million Number of corporate customers(Ja
215、pan):approx.160,000 Number of policies in force(U.S.A.):approx.12.8 million Number of customers(Australia):approx.4.5 million Number of policies in force(Vietnam):approx.1.36 millionStrong alliances with diverse business partners Enhancing the value provided to customers through the mutual supply of
216、 financial instruments Building a cooperative system with partners who have strengths in non-insurance areas such as healthcare Assets:approx.65.8 trillion Solid capital and financial base:Group EEV:7.1 trillion Economic solvency ratio:227%Capital investment for new value creation:Total strategic in
217、vestment:approx.1.2 trillionKnow-how(intellectual capital)to create well-beingAbility to co-create well-being(social capital)Business Model and Value Creation ProcessValue CreationFoundation of P.25Value Co-creation StoryWell-being of customersProtection Providing diverse products and services based
218、 on the needs of society and customers Expanded domestic multi-brands into eight overseas countries including emerging countries Approximately 200,000 policies for the entire Digi-ho brand,using digital technology to meet the increasingly segmented needs of customersRetirement,savings,and asset mana
219、gement Long-term asset management according to customer needs and fund attributes Balance of group pensions under management:approx.6.7 trillion(Dai-ichi Life)Balance of policy reserves under management:approx.8.4 trillion(Dai-ichi Frontier Life)Health and medical care Development of medical cost op
220、timization support services for health insurance associations Number of health insurance associations adopting Healstep and number of user IDs(cumulative):33/approx.170,000 membersEnhancing connections Providing opportunities for enhancing connections among businesses and residents in areas with our
221、 group business presence Number of well-being-related programs held and number of participants:approx.730 times/approx.35,000 participants(Dai-ichi Life)Financial support of customers Insurance claim payments,etc.:approx.5.8 trillion(Group-wide)P.29Value Co-creation StorySocietal and environmentalwe
222、ll-beingAchieving carbon neutrality Reduction of CO2 emissions from business activities(Scope 1+2):Down 28.8%(entire group,compared with fiscal 2019)Reduction of greenhouse gas emissions from asset management portfolio:Down 18%(Dai-ichi Life,compared with 2020)Promotion of ESG investments and loans
223、ESG-themed investments and loans(cumulative total):approx.1.3 trillion(Dai-ichi Life)Building a financial base by co-creation with stakeholders Group adjusted profit:296.1 billion;adjusted ROE:8.0%Group new business value:126.6 billion;ROEV:4.9%HD cash generation:approx.470 billion Total Shareholder
224、 Return(TSR):+36%Employee well-beingActive participation of diverse human capital Ratio of female managers:17%Ratio of mid-career recruits(to total recruits):34%Improved engagement Overall engagement survey score:63 Ratio of men taking parental leave:92.3%Note:Total for domestic group(Dai-ichi Life
225、Holdings,Dai-ichi Life,Dai-ichi Frontier Life,Neo First Life)P.37CX Design StrategyP.31Material issuesProtectionP.41P.43P.45P.47Protection that provides security tailored to diverse needsEnhancing connections that color each individuals lifeContributing to the maintenance and support of the health o
226、f all peopleRetirement,savingsand asset management for a 100-year life society and the next generationRetirement,Savings,and Asset ManagementEnhancing ConnectionsHealth and Medical CareIntroductionMessageValue CreationStoryStrategies&PerformanceSustainability and Business FoundationGovernanceDataVal
227、ue CreationDai-ichi Life Holdings21Integrated Report22IntroductionMessageValue CreationStoryStrategies&PerformanceSustainability and Business FoundationGovernanceDataOur responsibilities and stakeholders expectationsInitiatives to fulfill our responsibilities to stakeholdersand meet their expectatio
228、nsSociety and EnvironmentWe will utilize the Groups network across Japan to solve local issues by improving the well-being of local residents and building local communities.We will also promote carbon-neutral initiatives,ESG investments and loans,and stewardship activities to address climate change
229、and social issues.Collaborating and cooperating with local governments across Japan to promote crime prevention and disaster prevention for local residents,empowerment of women,and community revitalization Holding original programs at branch offices and sales offices to improve well-being of local r
230、esidents,such as health promotion,childcare,and sports promotion Promoting efforts throughout the Group to achieve net-zero CO2 emissions from business activities Promoting responsible investment initiatives in Dai-ichi Lifes investment portfolio by enhancing ESG integration and ESG-themed investmen
231、ts,and expanding engagement with investee companies Promoting initiatives to switch to 100%renewable energy sources for electricity consumed in the business activities at Dai-ichi Life and group real estate affiliatesEmployeesTo respond to the diversified needs of our customers and society,we will p
232、romote diversity and inclusion among our employees and build a foundation in which diverse human resources can play an active role.In addition,we will promote the development of diverse and flexible work styles and the enhancement of job satisfaction so that our employees can envision their various
233、desired careers,work enthusiastically,and improve their individual skills.ShareholdersandInvestorsWe will enhance two-way dialogue with our shareholders and investors to fulfill our accountability regarding group business strategies and financial performance,and to obtain opinions and requests that
234、will contribute to the further enhancement of group management.In addition to statutory disclosure,we voluntarily and transparently disclose quantitative financial information and nonfinancial information such as governance and medium-to long-term corporate strategy.Held financial results and busine
235、ss briefings from top management for institutional investors and analysts(twice)and online briefings for individual investors(three times)*Conducted earnings conference calls(four times)and individual meetings with institutional investors in Japan and overseas(88 in Japan,120 overseas)*Held dialogue
236、s with shareholders at general meetings of shareholders and encouraged the exercise of voting rights Disclosed information appropriately through websites and disclosure materials Reflected opinions and requests obtained through investor relations activities in group management by sharing them with t
237、he Executive Management Board and the Board of Directors We have set targets for the ratio of female department heads and the ratio of male employees taking childcare leave,and are promoting initiatives to raise them.To promote the employment of people with disabilities and support the work styles o
238、f employees with childcare or nursing care needs,we are expanding work options,designing systems and improving working environments to enable individual employees to balance work in their own environment.We will expand training programs to hone employees expertise,promote career rotation,and design
239、a personnel system that enables autonomous careers and secondary jobs.We will implement a PDCA cycle to improve job satisfaction through engagement surveys and town hall meetings.Our responsibilities and stakeholders expectationsInitiatives to fulfill our responsibilities to stakeholdersand meet the
240、ir expectationsCustomersIn the event something unfortunate should happen to a customer,our Group will do its utmost to provide financial support with prompt and appropriate payments for insurance claims and benefits of the products the customer has purchased and will endeavor to relieve the anxietie
241、s of our customers and their families and restore a peaceful life.In addition to providing the protection that is a core function of an insurance company,we aim to improve the well-being of our customers in a wide range of areas where we can utilize our strengths,such as retirement,savings,and healt
242、h promotion.Developing products and expanding service areas to meet the ever-changing needs of customers Consulting closely with customers to consider together the life they want and to provide them with services they need Responding to diverse preferences and lifestyles of customers through the dev
243、elopment of an infrastructure that enables contract procedures to be performed at an appropriate time and in the manner each customer desires Establishing an operation structure and system for the prompt and appropriate payment for insurance claims and benefits Planning and implementing measures to
244、analyze and improve customer satisfaction through measurement of NPS related to our provision of servicesBusiness PartnersBy building a cooperative system with external partners,we will co-create services that go beyond the areas described above in which the Group has strengths,to closely support ou
245、r customers in all aspects of their daily lives.In addition,to respond to increasingly diversified and segmented needs,we will partner with specific community management organizations based on common interests,tastes,and lifestyles to develop and provide products in a flexible and agile manner.Build
246、ing alliances with major Japanese financial groups in asset management and product development/supply Providing“Digi-ho”brand insurance products for freelance and essential workers through partnerships with operators in the relevant communitiesAt our Group,we recognize our customers(including the ne
247、xt generation),our business partners,society and the environment,our employees,and our shareholders as stakeholders who are deeply involved in our business activities.Under“Re-connect 2023,”our medium-term management plan,to fulfill our responsibility to all of our stakeholders,we aim to“reconnect i
248、n a better way”by revisiting our conventional approaches to engage with all stakeholders.Based on opinions and evaluations obtained through active communication with various stakeholders,we aim to promote higher-quality activities and link those efforts to enhanced corporate value by reflecting our
249、understanding of issues in our business activities.Internet IRSustainability Excellense Award2021CommendationAward2021Internet IROur Approach to StakeholdersAddress changes in customer needs and behaviorIncorporate medical and digital techAchieve true customer centricityRe-connect with customersExpa
250、nd insurance-related services from a customer perspectiveSeek collaboration to help resolve social issuesRe-connect withbusiness partnersSecure sustainabilityAdopt eco-friendly measuresand combat climate changeImprove employee engagement and well-beingPromote active participation of diverse talentRe
251、-connect with employeesAchieve high capital efficiencyEnhance shareholder payoutRe-connect withshareholdersRe-connect with societyand the environment*All fiscal 2021 resultsetc.Support forthe elderlyCommunityrevitalizationCooperation withall 47 prefecturesChildren andeducationSafety anddisaster prev
252、entionHealth promotionEmpowerment of womenSports promotionValue CreationDai-ichi Life Holdings23Integrated Report24IntroductionMessageValue CreationStoryStrategies&PerformanceSustainability and Business FoundationGovernanceDataMake our customers happy by“enhancing connections”A partner who is always
253、 there for you,not just when you need usEveryday SupportWhat is value co-creation at Dai-ichi Life?After taking out the trash in the morning,I drop my children off at daycare before going to work.My wife will pick up them in the evening,but tonight I will be in charge of bathing them and putting the
254、m to bed.I want to think carefully about our life plans,such as school fees for our childrens future and what to do in case something happens to our family,but it is difficult to find the time.I just remembered that when I bought life insurance before,the person at Dai-ichi Life told me they could h
255、elp with more than just insurance.I also recall receiving an invitation to an information site for subscribers.I have a business trip coming up next week,so I wont have time to meet in person this month,but Ill try to get in touch through the information site when Im back.Traditionally,customers thi
256、nk about insurance companies only at the time of life events,such as employment and marriage,or in case of illness,injury,or other emergencies.Our aim is to provide new ways of connecting customers to the products and services they need anytime and anywhere.Once we have established a connection,whet
257、her online or in person,we can connect with the customer anytime,anywhere through our information site,“Mirashiru.”We also offer various solutions to the problems and concerns that customers face every day and support them in their daily lives,demonstrating our commitment to be“By your side,for life
258、.”One new way to connect is through our“Mirashiru”information site,which provides not only insurance products but also a variety of information content related to daily life,health,money,and other topics.For example,it provides information on health promotion options that help customers develop heal
259、thy lifestyle habits naturally,as well as information on seminars and community exchange events scheduled in the customers vicinity.When customers want to consult directly,they can easily connect with us through chats and online interviews.By consulting with us during breaks in their busy schedules,
260、customers will become more familiar with insurance as we help them resolve their minor worries and anxieties.Of course,customers who wish to make direct contact after communicating online can schedule in-person meetings and consultations through“Mirashiru.”We always support our customers both online
261、 and in personSolutions to various problems through“Mirashiru”In the age of a“100-year life society,”there is a growing need for living arrangements that provide not only conventional death benefits but also pensions,medical care,and long-term care coverage,as people live longer.In the areas of“prot
262、ection”and“retirement,savings,and asset management,”we support customers,lives from an economic perspective by stabilizing their life foundations and extending the life expectancy of their assets.We also help customers develop sound mental and physical health that is essential for a happy life by ex
263、tending healthy life expectancy and creating connections with people in their communities and regions.Our goal here is to create prosperous and secure lifestyles for people and society.24.25million37,515peopleDigital touch points*Total Life Plan Designers*As of April 2022.The number of digital touch
264、 points is a proprietary indicator representing the number of digital information provision and communication points with our customers.A meal with good friends,a sense of accomplishment at work,the birth of a new child.There are moments in life when we feel happiness through“products”and“services.”
265、On the other hand,some things support our happiness in invisible ways that we are not usually aware of.That is the power of“enhancing connections.”We at the Dai-ichi Life Group help our customers achieve happiness under our mission,“By your side,for life.”We connect with customers daily through face
266、-to-face and digital interactions to help resolve their problems and concerns.We also work with external partners to help customers achieve well-being.In this section,we introduce examples of how we are“enhancing connections”to support the happiness of our customers.Concerns of a working family in t
267、heir 30s raising small childrenValue co-creation storyValue CreationDai-ichi Life Holdings25Integrated Report26IntroductionMessageValue CreationStoryStrategies&PerformanceSustainability and Business FoundationGovernanceDataI started my career as a Total Life Plan Designer because I experienced the l
268、oss of my father while in high school,which made me realize the importance of insurance firsthand.While I wanted to share my feelings about the“origin of insurance”with customers,I did not have much opportunity to talk with them face-to-face.Then I learned that we could deliver information to custom
269、ers online through“Mirashiru.”Using the site,I frankly shared my thoughts on insurance in my own words,along with a story about losing my father,which drew warm responses from more customers than I had imagined.Some customers shared my page with acquaintances,leading to the start of new relationship
270、s.Thanks to“Mirashiru,”I feel that Ive become closer to the hearts of customers,as I can convey my thoughts and feelings directly.Our mission is to be“By your side,for life.”We are here to alleviate customers anxiety and help them live a richer life.We will continue delivering these values to our cu
271、stomers.A friend of mine told me that she took out life insurance after the birth of her child but the prospect of receiving insurance in case of emergency didnt seem right to me.More importantly,if I were to become ill and unable to work now,would I be able to continue my way of life?I am more worr
272、ied about that.I want my parents,who live far away,to be healthy forever,but I also worry that I will eventually need to care for them.Even though teleworking has become more common,it is not realistic to move near my parents house while continuing to work at my current job.Im looking for someone wh
273、o is willing to kindly listen to me and my parents about our health,savings,and asset management needs,as well as financial security in case something happens to me.We offer a variety of ways to establish“connections”with our customers according to their lifestyles and needs.For customers who prefer
274、 face-to-face consultation on the right insurance coverage for them,our Total Life Plan Designers,known for their attention to detail,serve as the first point of contact,while Neo First Life,through agency channel,serves those who are more price-sensitive.For customers who prefer remote,digital solu
275、tions,our Dai-ichi Smart direct sales channel serves as the first point of contact.In such ways,we meet the diversified needs of customers.In addition,through customers employers and others,we provide information about our group insurance and health association member services.Furthermore,Dai-ichi F
276、rontier Life,in cooperation with financial institutions,proposes products and services for customers considering savings-type insurance products for asset formation.Each customer has a different family structure,life plan,and asset situation.Through our highly specialized consultants,we provide cust
277、omers with personalized advice on protection,retirement,savings,and asset management,as well as health and medical care.We have strengthened the consulting capabilities of our Total Life Plan Designers,who deal with customers face-to-face,through initiatives like revamping their training programs an
278、d compensation structure while maintaining their traditional strength in accurately understanding the needs of each individual customer.In addition,another key feature is our ability to seamlessly provide non-medical services,such as health promotion and prevention of disease and serious illness,as
279、well as medical services after onset of illness.Through our nationwide network,we also offer appropriate services to parents in distant locations.Furthermore,harnessing our Group-wide investment management know-how accumulated as one of the largest institutional investors in Japan,we provide consult
280、ing services to meet the various asset formation needs of our customers.We stay close to our customers throughout their lives,helping with asset succession to children and grandchildren as needed,building long and deep chains of relationships in the process.We connect with our customers in ways that
281、 suit themConsulting to meet individual needs“Mirashiru”brings us closer to our customers.Akiko YamadaTotal Life Plan DesignerEvery day,I used my busy schedule as an excuse to be unhealthy.These days,I dont even go to the office every day because of telecommuting,so my physical activity has declined
282、 a lot.According to my smartphone,there are three days a week when I dont even walk 2,000 steps.thats not good.Im scheduled for a physical examination the week after next.Im sure theyll point out my lack of exercise,as Ive gained five kilograms since last year.But I cant seem to motivate myself to e
283、xercise.My mother tells me that my health is the most important thing,but I dont have the discipline to maintain an exercise program.Just remembered that,I heard from a colleague about a health promotion app that seems interesting because it accumulates points and feels like a game.Maybe I should st
284、art by downloading it.We promote collaboration with global innovation hubs and start-ups,as well as industry-academia partnerships with universities,to utilize various data obtained through our business and create services that lead to new experiential values for customers.Through a business allianc
285、e with DeNA,which has strengths in the digital domain,we launched“Haretoke,”a community service that enriches womens lives,and“Karadamo,”an app that supports healthy dieting,in the autumn of 2021.We also have partnership agreements with 47 prefectures and 267 municipalities across Japan and work har
286、d to address local issues,such as youth development and education,as well as support for the elderly and promotion of health,womens activities,local revitalization,and sports.Through these activities,we demonstrate the value we place on relationships with the local communities where our customers li
287、ve.To support health and medical care initiatives,our group and the Mizuho Financial Group teamed up to launch“Healstep,”a medical cost optimization support service for health insurance associations,in April 2021.We also offer a health promotion app called“QOLism”that uses AI-based analysis to visua
288、lize risks and outcomes,including forecasts of future medical costs.Based on analysis results,it formulates response policies,matches users with health guidance service providers,and promotes behavioral changes,such as lifestyle improvements.By offering these apps as a package,we deliver new experie
289、ntial values to our customers.Beyond insurance,we contribute to the physical and mental health of our customersSupporting the health initiatives of health insurance associations through“Healstep”Life is different for everyone,so we support individuals to become the person they want to beProviding va
290、lue beyond insurance through collaboration with multiple partnersWe will be there for each of youConnecting with PartnersComments from a representative of a health insurance association that adopted“QOLism”“QOLism”is a novel app that departs from conventional analog health services.It allows users t
291、o take more than 20 body measurements,including abdominal circumference,by simply taking two photos with a smartphone.It also delivers exercise videos with personalized menus to help customers reach their target body weight and displays calorie calculations and nutrient intake information using phot
292、os of meals.We adopted it with the aim of not only approaching high-risk groups but also promoting behavioral changes among association members,including those who are indifferent to health.Another attractive feature of“QOLism”is that it complies with the indicators for excellent health management c
293、orporations recognized by the Ministry of Economy,Trade and Industry.New-age app that changes formerly analog health services effective for medical cost optimization and health managementHiroyuki Yokomura,Managing DirectorDaito Trust Construction Health Insurance SocietyConcerns of a 30-something li
294、ving alone who is worried about his distant parentsConcerns of a working person about ignoring ones own health.Value CreationDai-ichi Life Holdings27Integrated Report28IntroductionMessageValue CreationStoryStrategies&PerformanceSustainability and Business FoundationGovernanceDataDai-ichi Life is com
295、mitted to creating a positive impact on society through investment and lending that help resolve social issues.In addition to investment and lending,we believe it is important to measure and understand how much positive social impact they have had after implementation.Through investment and lending
296、in renewable energy power generation projects and issues of green bonds to date,we have made an annual GHG reduction contribution of 800,000 tons,equivalent to around 12%of the GHG emissions of our portfolio(listed stocks,bonds,and real estate).In February 2021,we became the first Japanese entity to
297、 join the Net Zero Asset Owner Alliance(NZAOA),making an external commitment to achieve a carbon-neutral investment portfolio by the year 2050.To fulfill this commitment,we have established interim five-year reduction targets and will monitor the progress of efforts to achieve those targets.Specific
298、ally,we have set a target of reducing GHG emissions by 25%by 2025(compared with the 2020 level)in our listed equity,corporate bond,and real estate portfolios.By increasing investment and lending that help address climate change,Dai-ichi Life will foster the transition to a low-carbon society and enc
299、ourage the creation of environmental innovations.In addition to green bonds and renewable energy power generation projects,we are working to provide transition finance,impact investments,and other forms of financing to foster a shift to a low-carbon society.By the end of fiscal 2021,we had made cumu
300、lative investment and lending totaling 510 billion to address climate change,and our goal is to increase this amount to 950 billion by the end of fiscal 2024.Creating a sustainable society in harmony with society and the environmentConnecting a sustainable society to the future is our responsibility
301、 to the next generation and a prerequisite for fostering the well-being of all people.Recognizing that our mission is to make the future sustainable,we will accelerate efforts to address climate change as well as other important local and social issues.Increase our impact through co-creationConfront
302、 environmental challenges as a life insurance company and an institutional investorDai-ichi Life participates in engagement activities with its investee companies in accordance with both the Stewardship Code and the Corporate Governance Code.Our objective is to support medium-to long-term improvemen
303、ts in corporate value by attending to management issues that differ from company to company.To address climate change,we have selected the top 50 GHG-emitting companies among our investee companies as priority engagement recipients,with which we promote corporate climate change initiatives and infor
304、mation disclosure.We also actively participate in domestic and international collaborative engagement groups and initiatives to exert our influence on society as a whole,including our investee companies.Serving as a company,an institutional investor,and as individual human beings,our Group is determ
305、ined to help realize a decarbonized and sustainable society by taking a straightforward approach to the critical issue of climate change.Our Group has approximately 60,000 employees,each of whom must develop an awareness and take actions dailyactions that will spread to their customers,families,frie
306、nds,and others around them,leading to the realization of a decarbonized society.Based on these values,our Group is working together as one to implement various initiatives.An important job of the life insurance business is to protect future generations as a bridge connecting the present and the futu
307、re.As a“lifelong partner”with a mission of connecting current and future generations,we help realize a sustainable and resilient society by managing policyholders assets as an institutional investor.As an institutional investor,Dai-ichi Life manages approximately 38 trillion in funds in a wide range
308、 of assets entrusted over many years by policyholders throughout Japan.In this role,we will engage in responsible investments with the aim of helping resolve important regional and social issues to realize a sustainable society,which is a prerequisite for the well-being of all people,while securing
309、stable investment returns over the medium to long term.Dai-ichi Life will integrate ESG into all investment management policies and processes in accordance with the Principles for Responsible Investment(PRI)and the Principles for Responsible Institutional Investors(Japanese version of the Stewardshi
310、p Code).Considering the mission and characteristics of the life insurance business,we will also work to make a positive impact in our quest to realize a sustainable society for the future.Among the various currently faced social issues,we have positioned addressing climate change as a top priority i
311、ssue for responsible investment.Through investment management as an institutional investor,we will provide investment and lending to help reduce greenhouse gas(GHG)emissions and transition to a decarbonized society,and thus resolve climate change issues.Through engagement-based stewardship activitie
312、s,we will also encourage the decarbonization efforts of our investee companies.Engaging with investeesAccelerate the transition to carbon neutrality through investment and lending Create a positive impactEfforts of group officers and employeesP.61Addressing Climate ChangeResponsible Investment and T
313、op-Priority Themes Promote investment and lending that help resolve climate change Reduce GHG emissions in our investment portfolio950 billion2trillionInvestment/lending targetfor climate change solutionsESG-themed investment/lending target(FY2024)Value co-creation storyValue CreationDai-ichi Life H
314、oldings29Integrated Report30IntroductionMessageValue CreationStoryStrategies&PerformanceSustainability and Business FoundationGovernanceDataBased on the external environment and global initiatives,such as the SDGs,we have selected 14 key issues to focus on to address social challenges and ensure the
315、 sustainability of communities and society through our business.For each of these issues,we identify medium-and long-term risks and opportunities for our Groups business and reflect them in the business strategies of our medium-term management plan,Re-connect 2023.Stakeholder expectationsHighHigh Le
316、vel of importance for the our Group as an insurance companyEven higher50 social issues derived from the 17 goals and 169 targets of the SDGsStep 114 key issues that are highly relevant to our group philosophy and visionStep 3Step 2Livelihood stability through insuranceImproving the efficiency of ene
317、rgy useResponding to climate changeCreating job satisfactionRegional developmentPromoting the advancement of womenPromoting clean energyInitiatives toward human rights for allImproving corporate governance and risk managementCreating cutting-edge technology that increases peace of mindContributing t
318、o the development of society through responsible investment and lendingSense of security in later lifePromote health for allBuilding a safe and secure communityProtectionRetirement,Savings,and Asset ManagementHealth and Medical CareEnhancing ConnectionsStep 2Even higherEnsure the well-being of all,i
319、ncluding future generationsRealization of a sustainable society for the next 100 yearsMaterial issues related to ensuring regional and social sustainabilityFour Experiential ValuesOptimal experiential values that meet customer needsAmong the issues prioritized and rated as important,we selected 14 i
320、ssues based on their relevance to our group philosophy and vision after discussion with outside experts.Select material issuesStep 3We assigned priority and importance ranking to the 50 social issues based on stakeholder expectations and level of importance for an insurance company.Evaluate priority
321、/importance levelStep 2We grouped the 17 goals and 169 targets of the SDGs according to their purpose and came up with 50 social issues on which to focus.Identify and organize social issuesStep 1Material issues(Materiality)Social issues we can addressReasons for selecting the material issues Promoti
322、ng the health of people everywhereExtending healthy life expectancy and optimizing medical expensesMedical costs for the government and health insurance associations are increasing every year due to advances in medical technology and Japans aging society.While life expectancy is increasing,healthy l
323、ife expectancy is not keeping pace with this growth,resulting in a widening gap that represents a serious social issue for the nation.To address the social issues of increasing medical costs and the widening gap between life expectancy and healthy life expectancy,we aim to help people maintain good
324、health from the pre-disease stage,in addition to financially guaranteeing medical expenses after the onset of disease.Japan Widening gap between healthy life expectancy and increased life expectancy(9 years for men and 12 years for women)One in 4 of the population has no intention of improving their
325、 exercise and eating habits Overseas Maintain health to help reduce economic burden Building a safe and secure communityImproving emotional well-beingAmid a declining birthrate,an aging population,an increasingly digital society,and diversifying lifestyles,we are entering an era in which people seek
326、 spiritual enrichment in addition to physical enrichment.The spread of COVID-19 has also reaffirmed the importance of“enhancing connections”between people.We will advance diverse initiatives that foster the enrichment of peoples hearts and minds as a member of the community and society,together with
327、 local governments and business partners.Japan and overseas One of the greatest factors in determining longevity is“enhancing connections”Japan About 30%of respondents do not have many friends in the community More than 30%of respondents are concerned about the future of the region(decrease in careg
328、ivers,transportation,and employment)Optimal experiential values that meet customer needsa Improving customer loyaltyAmid diversification of values and behaviors,including those of the digital native generation,“asymmetry of information”has disappeared while the commoditization of products is progres
329、sing in various fields.The same applies to the life insurance sector,where in addition to the value that products and services provide,emotional values such as a customers psychological satisfaction will be emphasized going forward.By carefully grasping customers diversifying values and needs,we are
330、 committed to delivering experiences and impressions that exceed their expectations at every point of contact.Responding to climate changePreventing irreversible environmental change due to global warmingWe recognize that environmental measures,such as the need to mitigate climate change and improve
331、 efficient energy use,must be addressed by the international community as a whole.This is an important business management issue that could have a significant impact on the lives and health of our customers,as well as corporate activities and the sustainability of society.As a global insurance group
332、,we will resolve this issue from our perspective as both an insurance provider and an institutional investor.Japan and overseas Future temperature increase due to global warming is estimated to be as high as 4.8C Improving efficiency of energy useDissemination and probability of new energy systems P
333、romoting clean energyJapan Dependence on fossil fuels for energy higher than 80%Promoting the advancement of women Improving corporate governance and risk managementImproving human capital diversity as a Japanese company considering global standardsTo address the ever-increasing speed of changes in business conditions,our most important management resource for corporate transformation is our human