Contribution to the Global Environmental Protection through Insurance and Financial Products and Services

If global warming continues at the current pace, the world will reportedly be at risk of higher rainfall intensity in the event of torrential rains and stronger typhoons. As a provider of insurance and financial services, it is a vital part of our role to convey the risks of climate change accurately to customers and offer products to prepare for related damage, including insurance products for natural disasters, and climate derivative products for abnormal and unfavorable weather. As we see it, however, our role is not limited to preparing for damage; we consider the discharge of our responsibility to mitigate the worsening of global warming, even if only a little, to be one of our most important tasks for contribution to the building of sustainable societies.

Toward the end of mitigating global warming through our core business, the MS&AD Insurance Group is working to devise and develop new products and services not bound by conventional frameworks.

As part of environmental protection activities, MSI introduced paparless web policy clauses since January, 2010 and Aioi Nissay Dowa since October, 2010, that promote saving paper resources. And MSI is engaged in a program under which it makes donation to global environmental protection activities corresponding with the number of cases of web policy clauses.

MSI: Green Power Supporter program / Web policy clauses (Japanese only)

Aioi Nissay Dowa: Donation program under cases of Web policy clauses (Japanese only)

Eco-Mark

MSI and Aioi Nissay Dowa obtained Eco-Mark certification through the promotion of web policy clauses, provision of information for safe driving and approaches to reduce environmental burden such as encouraging the use of recycled automobile parts.

Eco-Mark: Eco-label program which is governed by Japan Environment Association and it certifies the products which contribute protecting the environment or reducing the environmental burden. Certification criteria for Automobile Insurance was newly established in November, 2010.

Green Power Supporter program

MSI has constructed Green Power Supporter program under which MSI engage in the global environment protection with customers through Insurance.
Corresponding with the number of cases of the 4 approaches; Web policy clauses which help to reduce levels of paper consumption, Electronic contracting procedures, Eco-maintenance and eco-inspection which helps to reduce CO₂ emissions and toxic gas, Use of recycled automobile parts which helps repairing automobiles with environment-friendly part, MSI donates to environment protection activities MSI donated 23 million yen during a year from February, 2010 under its Green Power Supporter program.

Green Power Supporter program (Japanese only)

MSI develops in response to the needs of customers and sells the products of weather derivatives and Earthquake Derivatives which have positive effects for hedging or mitigating the loss caused by abnormal and unfavorable weather or earthquakes. Also in United States, it provides hedging scheme of weather risks through affiliate company.
Its worldwide active works of Weather Derivatives and numbers of weather-related transactions intended for not only temperatures but various weather elements were awarded the prize in the “No.1 Asian Weather Derivatives Dealer 2010” award held by “Environmental Finance”, UK monthly magazine.

To encourage the spread of automobiles making a higher environmental contribution, Aioi Nissay Dowa offers insurance discounts for environment-friendly automobiles such as hybrid vehicles and electric vehicles.

Automobiles that reflect improvements to make them less liable to breakdown and easier to repair not only lower repair costs in the event of accidents but also contribute to reduction of the parts to be replaced (= decrease in parts scrapped) because of limitation of the scope of damage. As such, they are also environment-friendly, as they save resources, reduce the burden of work in repair shops, and decrease emissions of paints, solvents, and other environment-burdening substances. We offer discounts on environment-friendly automobiles.

PAYD, automobile insurance linked to driving distance

Aioi Nissay Dowa developed and is selling a landmark type of automobile insurance in which premiums are linked to the driving distance. In PAYD policies, drivers pay premiums only for the distance actually driven, as determined by vehicle-mounted terminals. The premiums are lower for customers who drive less monthly distance. The insurance is therefore environment-friendly, in that it encourages less use of gasoline and consequently reduction of CO₂ emissions.

Pamphlet of Heartful Recycling

Aioi Nissay Dowa developed and is selling special contracts for use of recycled parts in conformance with the Act on Recycling, etc. of End-of-Life Vehicles, to help build the recycling-oriented society. In April 2002, the company launched sales of Heartful Recycling, an automotive insurance policy with an optional policy for use of recycled parts. The policy offers a 5% discount on the automobile physical damage insurance premiums.

Since July 2007, Aioi Nissay Dowa has been offering corporate customers which have been certified under the environmental management system the ISO/HACCP discounts on premiums for (ToughBiz comprehensive general) liability insurance.

* HACCP: Hazard Analysis and Critical Control Point, one of the systems for food sanitation management

MS&AD Insurance Group suggests customers whose automobiles must be repaired because of accidents to use recycled parts in doing repairs for promoting recycling-oriented society and reducing environmental burden.

MSI gives repair shops and customers explanations about recycled parts in an easy-to-understand manner and encourage to make extensive use of recycled parts in line with the wishes and requests of customers.

Green Power Supporter / Recycled parts (Japanese only)

Aioi Nissay Dowa developed a wreck network auction system together with an NGP group*1 to promote use of recycled automobile parts. The system, which is the first of its kind in the non-life insurance industry, is operated to encourage use of recycled parts and proposal of the same to repair shops, toward the ends of lawful disposal of wrecked automobiles and commercialization of recycled parts. In fiscal 2010, the auction drew about 18,000 vehicles and about 1,400 participating businesses. In June 2009, "eco action points*2" started to be given to customers holding automobile physical damage insurance policies who had repairs done with recycled parts. Such customers all get 500 points (equivalent to 500 yen) per accident.

*1 NGP group: a nationwide network of dismantling businesses

*2 Eco action points: a program promoted by the Ministry of the Environment, under which points are awarded for purchase of environment-friendly goods and services and energy-saving acts. The accumulated points can be exchanged for goods and services.

Through the Advance Club, an organization of service and repair shop agents, MSI is promoting the spread of eco-maintenance and eco-inspection. Eco-maintenance and eco-inspection consist mainly of engine washing; the interiors of combustion chambers in automobile engines are washed by a special procedure. Besides curtailing emissions of toxic gas, the removal of residue of carbon and other substances in the chambers helps to reduce CO₂ emissions because it improves fuel efficiency and thereby decreases fuel use. As of March 31, 2011, the number of repair shops performing engine washing reached 442.

Green Power Supporter / Eco-maintenance and eco-inspection (Japanese only)

MS&AD Insurance Group supports to obtain certification under Eco Action 21 for environmental management systems of the kind recommended by the Ministry of the Environment.

MSI participates in Partner companies greening program in which auditors in each areas hold seminars and make follow up for the members of Advance Club who engage in the Eco-maintenance. As of March 31, 2011, over 300 firms were certified under Eco Action 21.

Aioi Nissay Dowa also participates in the Program with The Nationwide Professional Group* and promotes certification to domestic small and medium-sized enterprise as well as to the agents. About 750 agents and firms has obtain the certification so far, and are working together for the prevention of global warming.

* An organization of dedicated agents of Aioi Nissay Dowa and Aioi Life. Its members are persons qualified for business in non-life and life insurance.

Photovoltaic (PV) power generation systems are the system that converts the energy of solar light into electricity. An environment-friendly energy source free of CO₂ emissions, they are indispensable for building the low-carbon society. Because they can also be installed in ordinary homes, the systems meet the needs of consumers who want to use green power and have heightened conscious of energy saving. MSI and Aioi Nissay Dowa offer spacialised loans to meet the needs of those consumers and contribute to promote the spread of those system.

The MS&AD Insurance Group has prepared tools to assist promotion of eco safe driving, a term referring to practices that are gentle to the environment, help to reduce fuel costs, and also decrease accidents. We are actively advocating these practices to corporate customers.

Social contribution through our core business “Customer education in safe driving” to our customers.