In “The Global Risks Report 2018” announced by the World Economic Forum (WEF) at its annual meeting (also known as the “Davos Summit”), 10 potential future shocks were named. These included the risk of the proliferation of artificial intelligence (AI) choking off the performance of the internet, as well as the risks of coordination between countries being threatened. New innovation is essential for achieving a sustainable society, but there are also many new elements in the risks that will be caused. It is becoming increasingly important to analyze these risks, prevent them, and prepare for them. The MS&AD Insurance Group will continue to provide solutions to diversifying risks.
Major relevant SDGs and targets
We will contribute to sustainable economic development by providing measures to respond to new risks arising from inclusive and sustainable industrialization, as well as testing and research to support the spread of technological innovation.
Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation
9.1 Develop high-quality, reliable, sustainable and resilient infrastructure, including regional and trans-border infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all.
9.5 Enhance scientific research, upgrade the technological capabilities of industrial sectors in all countries, in particular developing countries, including, by 2030, encouraging innovation and substantially increasing the number of research and development workers per 1 million people and public and private research and development spending.
Business of MS&AD
Providing, researching, investigating information on various risks
Providing solutions to risks
Providing products and services to respond to critical risks
Providing, researching, and investigating information on various risks
We provide, research, and investigate information that is beneficial in assessing or identifying risks, including investigations into technology or the environment, both of which are evolving on a daily basis, or research toward utilizing big data.
Providing information and reports on risks
Through MS&AD InterRisk Research & Consulting, we provide the latest practical materials and information related to risk management for risk management initiatives at companies or organizations, as well as support precautions for various risks.
Research and study through industry-academia collaboration with universities and others
The MS&AD Insurance Group is engaged in initiatives or supportive measures for the development or practical application of advanced technology. These initiatives are undertaken through industry-academia partnership agreements with universities that are engaged in advanced investigation or research that will benefit the next generation.
Support for robotics businesses through the industry-academia collaboration agreement with Tokyo Denki University
MSI is a core member of RobiZy, an NPO established in October 2017 through an industry-government-academia partnership between robotics companies, the prefecture of Saitama, and Tokyo Denki University, secure, and steadily growing roboticsgrowing robotics businesses through investigative research, provision of information, and business assistance in the field of robotics.
We hold seminars and workshops in collaboration with RobiZy on various topics including the utilization of robots for rehabilitation or long-term care, development of intelligent agriculture and forestry businesses for the revitalization of rural areas, and the reform of working practices through the use of robots, AI, and IoT. By utilizing our rich experience in supportive initiatives, expertise, and networks gained through various projects, we will provide comprehensive support for robotics businesses on a national level and seek to solve social issues.
To apply robotics to social issues, appropriate risk management measures are essential. With Tokyo Denki University, with whom we have partnered since 2015, we are engaged in research for the development of robots and drones for agriculture and forestry, as well as the development of medical and welfare devices, among others. We therefore have experience and expertise in risk management in such areas. Through such initiatives, we will drive forward the sound and safe development and promotion of robotics businesses.
Joint research by collaboration with Shiga University, which established the first Faculty of Data Science in Japan
In April 2017, ADI signed an industry-academia partnership with Shiga University to pursue research in sophisticated analysis technology for big data in non-life insurance related to safety and security, as well as to promote the training and education for data scientists. The Japan Safety Society Research Center, the first research hub specializing in big data for the domestic insurance industry, was established at Shiga University, where representatives of the university and our company are engaged in research in specific areas. For our donations made to Shiga University in March 2017, we received a “Medal with Dark Blue Ribbon” for contributing to the public good, and an award ceremony was held in June 2018.
We will continue to further deepen our collaboration with Shiga University and step up our initiatives in the field of data science in order to contribute to the development of high-level human assets and the establishment of a safe and secure society.
Providing solutions to risks
With the progress of technological development, the impacts of climate change, and an aging population, changes in the environment have diversified the risks we face. To prepare for new risks, assessment through reliable risk models and risk control based on them are critical. Through consulting by MS&AD InterRisk Research & Consulting, which is equipped with advanced investigation and research functions as well as practical consulting functions, the MS&AD Insurance Group provides solutions to prepare for risks.
List of consulting services at MS&AD InterRisk Research & Consulting
Providing assistive services for preventing accidents, etc., for educational and childcare facilities
In October 2017, MS&AD InterRisk Research & Consulting started providing “Assistive services for prevention of accidents and their recurrence” for daycare centers and preschools.
As measures to prevent recurrences of major accidents at educational or daycare facilities (daycare centers or preschools), the followings were designated in FY 2015:
(1) System to report major accidents when they occur
(2) Guidelines for preventing accidents and for responding to accidents when they occur
(3) System for post-accident inspection to prevent recurrences
This suggests that the perspective of risk management is also highly valued in the field of childcare. Also, to combat the problem of children on waiting lists for childcare facilities, the expansion of childcare services such as company-led childcare centers promotes various forms of work for the purpose of contributing to a healthy work-childcare balance. We will respond to customer needs by providing “Assistive services for prevention of accidents and their recurrence” in line with such initiatives by the government.
Providing products and services to respond to critical risks
Response to cyber risks
MSI and ADI are engaged in the joint development and sales of insurance products that comprehensively cover risks from cyber attacks. Cyber attacks, such as targeted email attacks carried out on companies and organizations, are on the rise and becoming more sophisticated. With escalating damage from such attacks, the implementation of measures to prevent these risks is becoming an important issue in corporate management. Under these circumstances, in addition to providing compensation for damages sustained due to data theft or inhibition of third-party operations caused by cyber attacks, etc., we cover costs for various measures needed to respond to incidents, as well as the option of compensation for lost profit due to the termination or interruption of networks. In January 2018, we upgraded our product for small- to medium-sized businesses, thus providing a wide variety of insurance coverage to meet customers’ needs.
Cyber risks tend to evolve with technological development. As such, information gathering, research, and the adoption of the latest technology in a timely manner are essential. MSI, ADI, and MS&AD InterRisk Research & Consulting have collaborated with Verizon Japan (hereinafter, “Verizon”) and BitSight Technologies (hereinafter, “BitSight”) to launch, in February 2018, a new service that conducts a multidimensional assessment of cyber risks for businesses. This assessment service utilizes cutting-edge expertise developed by Verizon and BitSight in cyber security, and provides multidimensional and refined assessments of increasingly complex and sophisticated cyber risks. MS&AD InterRisk Research & Consulting has also started providing new consulting services. As a group, we will provide one-stop assistance to establish structures that guard against risks on multiple levels.
In September 2017, MSI started collaboration with MS&AD InterRisk Research & Consulting, NEC Corporation, and NEC Solution Innovators to provide multidimensional support for cyber security measures for businesses.
In September 2017, ADI newly established the “Cyber Insurance Room,” which is engaged in the development and underwriting of insurance products for businesses, for the purpose of strengthening their development of products or underwriting of policies related to cyber risks, thus responding to rapidly expanding needs for preventing cyber risks.
The MS&AD Insurance Group will continue to mobilize expertise from group companies to actively develop products and services that meet customers’ diversifying needs.
Providing “General Compensation Plan for Demonstration Tests of Autonomous Driving Cars”
MSI and ADI provide the “General Compensation Plan for Demonstration Tests of Autonomous Driving Cars,” which covers risks related to demonstration testing of self-driving cars. Due to progress in advanced technology for automobiles, as well as the acceleration of research in line with national growth strategies, etc., both public and private initiatives for the development and spread of self-driving cars are intensifying, leading to expectations that traffic accidents will be reduced, congestion will be relieved, and support will be provided for better mobility of the elderly. Meanwhile, as repeated demonstration tests involving various risks are needed for the development of self-driving cars, we developed a compensation plan that comprehensively covers risks surrounding businesses involved in the testing. Through the sales of this plan, we will continue to contribute to achieving a pleasant, safe, and secure automobile society.
Employee training tool for preventing accidents in warehouses: Providing “Risk Hunter,” an app for developing skills to perceive risks
In December 2017, MSI started providing “Risk Hunter,” a smartphone app for developing the skills to perceive risks. “Risk Hunter” is a training tool with which the user watches a video of a warehouse recorded by a 360-degree camera, finds where the danger lies, and taps the spot on the screen. Allowing users to learn through playing games, this app is mainly targeted at employees of logistics operators, who can utilize it to prevent cargo accidents. With the shortage of manpower in recent years, the employment of unskilled workers and part-time workers is increasing, making the prevention of cargo accidents a critical issue for safety officers at companies. We developed this app to help solve such issues. We will continue to respond to customers’ needs, and aim to provide services that will lead to the prevention of accidents.
Find the “Warning indicator” in the game
Check the details of the identified risk and preventive measures
Learn from the “Warning indicator manual”
By finding the “Warning indicator” on the stage, the user will become able to identify hazards at work.
Every time a risk is found, points are added, and the user can learn specific measures to prevent accidents.
By providing the “Warning indicator manual,” we will help to instill detailed knowledge on accident prevention measures.
General Compensation Plan for Drones
MSI and ADI have launched the jointly developed “General Compensation Plan for Drones,” which comprehensively covers various risks related to the business use of drones (small unmanned helicopters). Drones are used for various operations including crop spraying, aerial photography, and disaster research, as well as inspections and surveys in security operations or facilities and construction work. The use of drones is expected to increase and spread in both industrial and public settings. On the flip side, the use of drones involves risks of damage to the device itself as well as liability to third parties due to falls or collisions. We therefore support the “Industrial revolution in the sky” through products that prepare for such risks.
On-demand insurance: “1-day Leisure Insurance”
MSI has launched its “1-day Leisure Insurance,” which is available in 24-hour units as needed, such as when going on holiday or heading out for a game of golf, starting from the inception date of April 2, 2018. This is an on-demand type of product similar to the “1-day Voluntary Automobile Insurance” for cars, which is also available in 24-hour units. As exemplified by the so-called sharing economy, customers’ needs are diversifying in recent years, with services being used only when needed or services being shared among users. In view of increased awareness around health issues and the promotion of work-life balance, people are expected to devote more time to leisure. With such changes in the social environment, customers are increasingly in need of reasonable insurance policies available in 24-hour units or those that focus solely on elements of leisure activities, which led us to develop this product. We will continue to actively develop products and services that meet the diversifying needs of our customers.
Coverage of risks related to the sharing business
MSI and ADI provide insurance products and others to platform operators that have obtained the “Sharing Economy Trust Mark” introduced by the Sharing Economy Association, Japan. The sharing economy market is expected to grow further in the future, and is positioned as one of the priority items in the “Future Investment Strategy 2017,” which is a growth strategy adopted by the government at a cabinet meeting. On the flip side, as it is possible for anyone to enter this market, ensuring safety and reliability is becoming an issue that platform operators must address in order to be able to provide services, including the elimination of concerns about responses to accidents or other issues. Under these circumstances, we have decided to offer various products and services to businesses that have obtained the “Sharing Economy Trust Mark” for the stable development of the sharing economy, in collaboration with the Sharing Economy Association, Japan. With the Private Lodging Business Act in force from June 2018, we also provide products for private lodging operators to deal with risks involved in the private lodging business.
MSI also provides the “Share Eco Protector (linked with certification program),” which is an insurance product specializing in the comprehensive coverage of various indemnity risks related to the sharing business. Additionally, from November 2017, MSI has started providing an on-demand-type liability insurance product for individuals that can be freely designed, bundled with a free settlement negotiation service. This is the first of its kind in the industry, introduced in response to rising needs from businesses that wish to provide liability insurance exclusively for individuals using the service and only while they are using the service.
ADI has started a maximum 60% discount for insurance premiums for the “Sharing Business Comprehensive Compensation Plan,” an insurance product exclusively for sharing business operators that have obtained the “Sharing Economy Trust Mark.” We will continue to contribute to the promotion of safe and secure sharing economy businesses.
Liability Insurance for Abandoned Houses
MSI and ADI have launched the jointly developed “Liability Insurance for Abandoned Houses,” starting from the inception date of February 1, 2017, targeting property management businesses of abandoned houses. With abandoned houses increasing across Japan, the issue of poorly managed abandoned houses has surfaced. Consequently, there are more operators that take on management services for owners of abandoned houses, and more owners that outsource the management of abandoned houses to such operators. With risks of incidents caused by the management or ownership of abandoned houses, there are increasing needs for insurance to cover them. Under these circumstances, we have been providing “Liability Insurance for Abandoned Houses,” which covers liability damages and costs incurred by management businesses or owners of abandoned houses.
Support for companies expanding exports through utilization of domestic reinsurance contract
MSI has exchanged a domestic reinsurance contract with Nippon Export and Investment Insurance (hereinafter, “NEXI”) in order to underwrite export credit insurance based on this contract. Targeting companies that engage in export deals, we have provided original products that deal with the risk of overseas business partners going bankrupt, or the risk of receivables becoming non-recoverable due to delayed payment by business partners. To respond to the needs of customers requiring further coverage, we have introduced a scheme in collaboration with NEXI to significantly increase the number of targeted export destinations and the amount of compensation, as well as to improve the convenience of customers. By helping to reduce risks related to export deals, we will contribute to the activation of both domestic and international trade, as well as support global economic development.
Credit Insurance for Medical Institutions
As one solution to the issue of unpaid medical bills facing medical institutions, ADI started providing “Credit Insurance for Medical Institutions” from September 2017. According to the Medical Practitioners' Act, medical institutions cannot refuse to perform a medical examination or treatment without legitimate grounds (legal obligation to provide medical care). This makes the healthcare industry more vulnerable to unpaid bills compared to other industries, which is becoming an issue for medical institutions. The aging population and the increase of oversea travelers have added to this problem, and we have pioneered this product in the industry as a way to solve such issues troubling medical institutions.
This product responds to new risks emerging from changes in the social environment. Through this product, we will contribute to the development of medical institutions and to the stability of their management, thus supporting the economy and revitalization of rural areas.
General support for tourism business
MSI and ADI provide the “Support Menu for Tourism Businesses,” which targets operators involved in businesses serving inbound travelers to Japan, including hotels and restaurants. With the rapid increase in overseas visitors coming to Japan, there are increasing needs to support operators involved in the tourism business. As such, we have developed this menu, which consists of insurance products targeting international travelers as well as risk consulting related to the tourism business.
Since April 2017, MS&AD InterRisk Research & Consulting has been providing consulting for local governments in creating “Evacuation Guides” for foreign tourists in Japan.
With the increase in inbound tourism to Japan, local governments and businesses are engaged in various promotion activities for overseas visitors. Meanwhile, initiatives are also strongly needed for preventing and mitigating disasters as precautions for emergencies caused by disaster risks in Japan, including earthquakes, for international tourists unfamiliar with the area.
Under these circumstances, as part of disaster prevention and mitigation initiatives, MS&AD InterRisk Research & Consulting has started to offer assistance in creating “Evacuation Guides,” which take the form of tourist maps of the kind often used by travelers and include information on how foreign tourists should respond in the event of an emergency.
By providing such services, we not only support the tourism business, but also provide safety and security to travelers from overseas.