Invigorating Local Communities and Promoting Sustainable Growth


The weakening of vitality of local communities leads not only to depopulation and insufficient social services but also to various other issues.
We are engaged in various initiatives in Japan and abroad, with the aim of contributing to the development of local and international communities. We are also keeping an eye on social issues in developing countries.

Major Results in Fiscal 2016

Identifying risks and providing information on risks

Study & research based on industry-academia collaboration with universities, etc.

The MS&AD Insurance Group pursues initiatives and supports activities for the development, practical application, etc. of advanced technologies through forming industry-academia collaboration and partnerships with universities engaged in innovative study and research beneficial for the next generation.

Entrance into an Industry-academia Collaboration Agreement with Tokyo Denki University for Development & Commercialization of Robots, etc.

A scene from the Smart Forestry Symposium
A scene from the Smart Forestry Symposium

In October 2015, MSI concluded with Tokyo Denki University the "Agreement on Industry-Academia Collaboration for Development and Promotion of Education and Research on Robot Development, etc." for the first time in the insurance industry.
While there are strong hopes for the development and commercialization of robots in various sectors, proper risk management measures must be implemented in the process. Tokyo Denki University engages in research related to the development, etc. of work-supporting robots, medical devices and welfare equipment. By entering into this collaboration agreement with MSI, which has a track record in abundant risk management and matching support in the field of robotics, the university promotes the sound and safe development and enhancement of businesses related to robots. Furthermore, since July 2016 the university has been periodically holding the Smart Forestry Symposium with about 30 institutions, including companies, organizations, and local governments introduced by MSI, in an effort to strengthen collaboration for considering the development and use of robots in the forestry sector.

First in the Insurance Industry to Collaborate with Shiga University, First University in Japan to Establish Department of Data Science

In April 2017 ADI entered into an industry-academia collaboration agreement with Shiga University, the first university in Japan to establish a department of data science. It opened the Japan Safety Society Research Center, the country’s first research site specializing in big data for the insurance industry, at Shiga University in order to pave the way for promoting further use of big data. Meanwhile, based on the acquisition of Box Innovation Group (BIG), the largest telematics insurance business operator in the U.K., ADI also sells the largest volume of telematics auto insurance in Europe through Insure The Box (ITB), a core company of BIG that maintains over 5 billion kilobytes of auto insurance telematics data. Thus ADI has been actively collecting big data and promoting sophisticated use of such data through various projects in Japan and abroad. It is under these circumstances that ADI has managed to form a partnership with Shiga University, which engages in research on the use of data in various fields and development of teaching materials for data science education. ADI has done so in our effort to contribute to the creation of new added value and the establishment of a safe, secure society.

Entrance into an Industry-academia Collaboration Agreement with Gunma University for Research Concerning Societal Implementation of Next Generation Mobility

Ceremony for Industry-academia Collaboration<br/>Agreement with Gunma University
Ceremony for Industry-academia Collaboration
Agreement with Gunma University

With a view to promoting research concerning social implementation of next-generation mobility, ADI and Gunma University entered into a collaboration agreement in December 2016. The purpose is to build a cooperating structure based on the spirit of reciprocity in areas where mutual collaboration is possible in terms of research & development and personnel exchange and development. ADI will cooperate with the university in pursuing research toward societal implementation and commercialization of next-generation mobility for achieving fully autonomous automatic driving.

Preventing risks from being realized / reducing the impact of risks

Regional Revitalization Support

The initiative to promote regional revitalization is one of the priority ones of the Japanese government and is being pursued across the country as a measure against rapid population decline and aging society. The MS&AD Insurance Group supports regional revitalization by helping industrial development activities that meet the characteristics of each region.

Regional Revitalization Support Menu

MSI implements the “Regional Revitalization Support Menu” in collaboration with local governments, etc. to develop and support small business owners and entrepreneurs with the aim of revitalizing regional economies.
This Menu is a package that contains the know-how accumulated thus far by the MSI Management Support Center on “working style reform support (personnel and labor),” “sales channel exploiting (marketing capability enhancement) support,” “entrepreneur development,” “successor development,” “inbound business support” and more. It can be deployed as a program in each region. Working with regional governments and other parties, MSI is working to offer seminars and individual assistance with the objective of enabling small business owners and entrepreneurs to continue achieving sustainable growth independently.

Regional Revitalization Project

ADI recognizes value in being “local community-oriented” as set forth in its action guidelines and has always valued its ties with local communities in pursuing bell mark-based CSR activities, supporting sporting events for persons with disabilities, and taking other initiatives. In fiscal 2016, ADI launched a regional revitalization project in response to the movements to promote regional revitalization across the country. ADI began supporting regional revitalization efforts by providing a menu of beneficial solutions for issues relating to “communities, people, and jobs” of regions. By working together with local governments and financial institutions, companies, etc. in local communities, ADI will widen our network in each region and create a certain form of “local community-oriented” style.

Collaboration & Comprehensive Partnership Agreement, etc. with Local Governments

The MS&AD Insurance Group enters into collaboration and comprehensive partnership agreements, etc. with local governments that promote administrative measures toward revitalizing local economies and building safe and secure communities. The Group also provides risk consulting services and promotes industrial development by effectively making use of the unique characteristics of each region. These initiatives are taken in an effort to contribute to the development of a safe and secure society. We will promote public-private partnerships and work to build resilient communities.

Major Initiatives

Promotion of safe, appropriate use of bicycles

MSI, ADI, and au Insurance concluded a business collaboration agreement with Osaka Prefecture based on the enforcement of the “Ordinance for the Promotion of Safe and Appropriate Use of Bicycles in Osaka Prefecture” (hereinafter referred to as the “Bicycle Ordinance”). These insurers have begun offering plans with low insurance premiums that can be purchased by a wide range of residents in Osaka as well as plans that offer sufficient coverage for the entire family.

Building resilient communities

The MS&AD Insurance Group supports and assists local governments and local companies implement crisis management measures in preparation for natural disasters and other unforeseen situations. ADI contributes to building communities that are resilient to disasters through holding BCP (Business Continuity Plan) seminars and supporting risk management by using the BCP formulation kit.

Support for companies entering overseas markets

MSI entered into a partnership agreement with Miyagi Prefecture, etc. and has been conducting support activities using its international networks deployed in various countries, such as providing companies that have entered overseas markets with information on politics, economy, livelihood (safety), etc. of overseas countries, holding seminars and individual consulting sessions for companies operating in overseas markets, and providing information locally to observation teams visiting overseas locations.

Support for the development of agriculture

The MS&AD Insurance Group supports regional revitalization through assisting in industrial development of regions according to the characteristics of each region. ADI collaborates with local governments and local financial institutions in holding risk management seminars for sixth-sector industrialization of agriculture and taking other initiatives.

The Regional AD Club

A gathering to show gratitude
A gathering to show gratitude

The Regional AD Club instituted at ADI engages in community contribution activities, such as holding various seminars and hosting events for inter-industrial exchange. In addition, the club operates a website for each of the 47 prefectures and provides locally oriented information and business information via website and mail news.
In fiscal 2016, over 3,000 companies newly participated in these events. In fiscal 2017, ADI will organize programs aimed at regional revitalization, including seminars for management in local companies, events to promote exchange among real estate business owners, and events for activating regional revitalization efforts. ADI will also continue to engage in bell-mark activities and activities to ensure there are no accidents as part of its efforts to achieve community contribution.

The “MS&AD Insurance Group Award” for Venture Companies

In February 2017, MSI gave “the Mitsui Sumitomo Insurance Award” to three venture companies at the business contest “MIRAI 2017” organized by a corporate consortium "Incubation & Innovation Initiative." “MIRAI 2017” is Japan’s largest-level business contest aimed at supporting the creation and growth of businesses that can have an impact on society. Several original themes deeply connected with insurance were set and ideas were widely solicited from corporations and individuals. The three companies that received the award have high affinity with the business of MSI along with excellent know-how, and MSI will begin considering pursuing collaboration in each of the relevant fields going forward. MSI works to develop innovative products and services through pursuing collaboration with various companies and widely incorporating external insights and know-how.

Reducing the economic burden when risks become real

Support for Sustainable Development of Small and Middle-sized Companies

For many companies, overseas expansion is a critical business strategy issue. For example, shrinking domestic markets are triggering expansions into overseas markets, and increasing overseas operations is requiring special measures as a supplier, and requiring diversifying risk factors such as considering natural disasters when locating production sites. The MS&AD Insurance Group provides products and services in preparation for various risks arising from expanding operations overseas.

Supporting Small and Medium-sized Companies to Expand Overseas Operations

MSI has been certified as a supporting organization for “New Exporting Power Consortium” that is the later system of “SME’s Overseas Development Fastpass.” Through this system, MSI provides appropriate advice regarding local risk management and general matters about insurance using our overseas network, which includes 42 countries.


Comprehensive Global Business Compensation Plan


MSI and ADI jointly developed and launched the "Comprehensive Global Business Compensation Plan," a product targeted at small- and medium-sized enterprises that are expanding overseas. Focusing on the three types of risks that are shared by many companies expanding overseas and export companies--risks related to products for export, risks related to business travelers and expatriates, and risks related to transport cargo and export transactions, this product packages the five insurance products that widely cover these risks into a single plan. In addition, it offers enhanced compensation in the event of an accident, as well as services and systems that provide support from everyday tasks to emergency response. Through these means, it facilitates the smooth operation of business activities overseas.


[Products included in the plan]

(1) Overseas product liability insurance (MSI: "Business Protector (for overseas export)," ADI: "Tough Biz Global PL")

(2) Overseas Crisis Management Expense Insurance

(3) Overseas travel insurance (comprehensive contact for corporations)

(4) Export trade credit insurance

(5) Ocean-going marine cargo insurance (pet name "Global Support One")

Fire Insurance for Small- and Medium-sized Enterprises

MSI and ADI jointly developed a fire insurance targeted at small- and medium-sized enterprises, and commenced sale of the product which started the insurance period from 1 October 2015. In addition to the introduction of the insurance premiums discount system according to actual risks, it is made possible to flexibly customize in accordance with the needs of customers, such as setting the amount of deductibles by types of accidents, and adding coverage for damages from business suspension and indemnity liabilities.

Development of Products and Services Responding to New Risks

The MS&AD Insurance Group is focusing on fields emphasized by the Japanese government’s growth strategy and developing new products designed to offer optimal coverage of the new kinds of risks and needs we expect to be generated by the growth strategy’s implementation.
MSI and ADI have been actively engaged in the joint development of products. They have launched products to support overseas expansion of small- and medium-sized enterprises, those to boost the utilization of renewable energy, and those to cover risks of the extending healthy lifespans industry including medicine, nursing care, and welfare. In addition, they will develop and spread in a timely manner progressive products and services in response to new risks, including products responding to the needs for measures against cyber risks.

Products to Cover Cyber Risks

MSI and ADI jointly developed and launched insurance products that comprehensively cover risks arising from cyber-attacks. In recent years, cyber-attacks, such as e-mails that target companies and organizations, have been growing in number and becoming increasingly sophisticated in methods applied, causing more serious damage. Since it has become an important issue for corporate management to take measures against such risks, we have developed insurance products to cover damage related to cyber-attacks, including information leakage and damage to operations of another party. In addition to offering coverage for damage, our products also cover the various costs necessary to respond to accidents. They also offer an optional coverage for the loss of profit caused by a suspension or halt of networks.
Furthermore, if damage arises due to a cyber-attack, etc., we provide a “specialist introduction service” of introducing experienced specialist companies, if requested by our customer, for investigating causes in a way that requires expertise and technology, and dealing with the accident, including preservation of evidence. In addition, for small-and-midsize enterprises, they offer a free-of-charge service “standard mail training service” to support the implementation of cyber security measures. This service entails transmitting a training e-mail in a standard format to the employees (up to 100 persons) of a company, and providing a simple report that includes advice for the future compiled by InterRisk Research Institute & Consulting based on the status of clicking the URL indicated on the e-mail sent out. In addition, they offer a “cyber-attack damage calculation service” in which we conduct simplified calculations of damage caused by a cyber-attack under four scenarios, such as “leakage of personal information,” based on the customer’s responses to a standard set of questions (9 questions).

Development of a Comprehensive Coverage Plan for Operation Test of Automated Driving

MSI and ADI sell the “Comprehensive Coverage Plan for Autonomous Cruising Demonstration Experiments” to cover risks surrounding experiments using autonomous cars.
With the progress in advanced automobile technology and the acceleration of research due to the government's growth strategy, etc., they are seeing more actions by the public and private sectors for the development and growth of autonomous cars. It is expected to reduce traffic accidents, solve traffic jams, and support mobility of the elderly. On the other hand, since the development of autonomous cars needs repeated practical experiments which entail various risks, they have developed this plan to comprehensively cover risks surrounding companies engaged in the experiments. Through this plan, MSI and ADI will contribute to the realization of a secure, safe and comfortable society with autonomous cars.

Covering Reparation Risks Incurred in connection with International Maritime Transportation of Hazardous Materials

MSI and ADI sell the “Hazardous Material Transportation Liability Insurance” that comprehensively covers reparation risks of shippers in international maritime transportation of hazardous materials.
After the explosion accident at the port of Tianjin, China, which occurred in August 2015, there is a heightened interest in risks for transportation and storage of flammable and explosive hazardous materials. In addition, it is expected to be clarified by the scheduled amendment of the Commercial Code in the future that shippers will be obliged to notify transporters that "Transported cargoes are hazardous materials," and if an appropriate notification is not made, costly damages may be claimed. Accordingly, they have developed a new product to widely cover shippers' risks for repatriation, targeting customers such as chemical manufacturers and trading companies. MSI and ADI will contribute to the creation of a secure and safe society by providing in a timely manner products and services based on various risks.

Launch of a Comprehensive Drone Compensation Plan

MSI and ADI sell the “Comprehensive Drone Compensation Plan,” a plan jointly developed to comprehensively cover various risks associated with business use of drones (compact unmanned helicopters).
Drones are being used for various operations, such as spraying pesticides, taking aerial photographs, surveying disasters, and inspecting and measuring security facilities and construction sites. They are expected to be used for wider purposes and spreading, along with their use for industry and the general public. On the other hand, since the use of drones entails the risk of damaging the airframe itself and liabilities for third parties due to a fall or crash, MSI and ADI will support the realization of the “Industrial Revolution in the Air” by providing products to prepare for such risks.

Supporting Companies’ Export Expansion by Leveraging Domestic Reinsurance Policy

Based on the domestic reinsurance agreement concluded with Nippon Export and Investment Insurance (hereinafter, “NEXI”), MSI underwrites export trade credit insurance using the agreement.
MSI has provided products corresponding to "bankruptcy risk of overseas counterparties" and "risks of uncollectible accounts receivable due to delays in payment by counterparties" for companies engaged in exporting transactions. In order to respond to the needs of customers for more enhanced coverage, MSI will improve the convenience of customers by introducing a scheme in collaboration with the NEXI, while substantially expanding the covered countries for export and the amount of compensation. MSI will contribute to the revitalization of trade in Japan and overseas as well as support global economic development by assisting the reduction of risks in export transactions, etc.

Unoccupied Housing Liability Insurance

Effective February 1, 2017, MSI and ADI launched “Unoccupied Housing Liability Insurance,” a product jointly developed for businesses that manage unoccupied housing. The number of unoccupied dwellings has been on an increase across Japan, and the issue of empty houses not being properly managed has become apparent. This has led to a rise in business operators that are entering the unoccupied property management service business of managing empty properties on behalf of owners as well as increase in owners who consign management of unoccupied properties to such service providers. At the same time, there have been growing needs for insurance to cover any damage from an accident caused by management/ownership of unoccupied housing. In light of these circumstances, they provide the “Unoccupied Housing Liability Insurance” to cover any damage and costs incurred by unoccupied property management business operators and owners of unoccupied housing.

Comprehensive Support for Inbound Businesses

MSI and ADI offer the “Supporting Menu for Inbound Businesses” for businesses, such as hotels and restaurants, receiving foreigners visiting Japan from abroad. Given the rapid increase in foreigners coming to the country, there have been growing needs to help business operators be prepared to service foreigners. Therefore, they developed this menu consisting of insurance targeting foreign travelers in Japan, risk consulting on inbound businesses, and other services. Through providing this menu, they support the inbound businesses of companies while providing visiting foreigners with safety and security.

Support Developing Countries to Resolve Issues

Insurance Penetration (India)

Smart office
Smart office

As India’s insurance market penetration has been limited to certain sections of population only, providing social security services to the majority of the population without access to such services has been recognized as a social issue.
Under these circumstances, in 2007 the Indian government launched a medical insurance scheme for low income households, called Rashtriya Swasthya Bima Yojana (RSBY), to further promote the enhancement of social security. Cholamandalam MS General Insurance Company Limited (Chola MS), which is MSI’s affiliated company in India, was commended by the Indian government for three consecutive years (from 2011 to 2013) for its work to promote the penetration of this government scheme and its claim payment services.

Sticker written in local language
Sticker written in local language

At present, Chola MS sells, in addition to RSBY, accident insurance for self-help groups(*) (SHG Bima Yojana), medical insurance for rural areas (Chola Aarogya Bima), and original medical insurance combined with accident coverage (Chola Swasth Parivar). In addition, the company also offers a government-led agricultural insurance scheme (PMFBY). Agricultural insurance covers the loss of income of famers due to bad weather and other unforeseeable events. In particular, this product indemnifies farmers, who purchase fertilizers, farming equipment, and machinery with loans, for a loss of income, thereby supporting the sustainable livelihood of farmers (number of insurance contracts in fiscal 2016: approximately 2 million; premium income: roughly 2.8 billion rupees). Further, Chola MS sells animal insurance for livestock farmers in rural areas (number of insurance contracts maintained in fiscal 2016: approximately 10,000 policies; premium income: roughly 50 million rupees).Animal insurance helps livestock farmers, who are also low-income, stabilizing their income by providing coverage for the death of livestock, etc.

Because of its vast land, another issue faced by India is how to promote insurance penetration in rural areas. Chola MS began rolling out small offices equipped with a policy-issuing machine (Smart Offices) which enables consumers to buy insurance policies on the spot in rural towns and villages with fewer than 100,000 residents. By doing so, the company is committed to improving access to insurance products in rural areas. There have been only a small number of insurance company branches in these areas, and this fact has been one of the obstacles to insurance penetration. The roll-out of Smart Offices at many locations is contributing to resolving this issue. At this point, Smart Offices sell standard individual insurance products, such as automobile, medical, and accident insurance policies. To further promote insurance penetration in rural areas, Chola MS is considering the expansion of the product line-up available at Smart Offices going forward.

(*) A self-help group means a group consisting of approximately 10 to 20 people who share a socio-economic background, such as income, occupation, and area of residence.