Supporting flourishing lives and a prosperous society through peace of mind
The life insurance industry has the mission of staying close to each customer, delivering peace of mind through its insurance products and services, and supporting people in leading flourishing lives.
With this mission in mind, it has been offering insurance products and services through a network of over 240,000 sales representatives and approximately 75,000 agencies nationwide. It contributes to enhancing the well-being of people by paying out approximately JPY19tn ($117.02bn) per year in insurance claims, benefits, annuities and other payments.
Recently, the rapidly declining birthrate, ageing population, population decline, advances in digital technologies such as generative AI and increasingly diverse values and lifestyles are driving society through a major period of transformation.
In addition, geopolitical instability, including the situation in the Middle East, and the increasing burden on households resulting from rising prices, have made it increasingly difficult to foresee future social conditions and the way we live. We are entering an era in which uncertainty has become the norm.
The LIAJ believes that, in an age of persisting uncertainty, life insurers are expected to fulfil the abiding mission of “Supporting flourishing lives and a prosperous society through peace of mind”.
To achieve this objective, it is essential, first and foremost, to ensure the thorough implementation of customer-oriented business conduct.
We also believe it is important to contribute to enhancing the financial wellbeing of all people by offering insurance products and services that meet diversifying customer needs, as well as through initiatives that enhance financial literacy.
Furthermore, to promote these efforts steadily, it is necessary to position the activities that contribute to achieving a sustainable and prosperous society as the foundation.
In this light, the LIAJ will focus on the following three pillars of action this year with the aim of “Supporting flourishing lives and a prosperous society through peace of mind”.
- Promotion of customer-oriented business conduct
The mission of life insurers is to provide customers with peace of mind and support them in leading flourishing lives. To fulfil this mission, it is of paramount importance to offer insurance products and services that serve the best interests of customers at every point of contact, while continuously enhancing their quality.
In this regard, the LIAJ has developed a voluntary guideline which summarises specific practices in line with the customer-oriented approach and has been following up on the efforts of member companies to promote their customer-oriented business conduct.
Meanwhile, taking extremely seriously the recent cases that have undermined the trust of customers and society, we will strive to further strengthen the compliance risk management structure within the industry.
Specifically, we will support member companies in improving their efforts and business structures by encouraging their further adoption of the “Viewpoints for Further Enhancement of Compliance Risk Management Structure Related to Direct Salesperson Channel” that we have been promoting, thereby contributing to the restoration of public trust.
With regard to insurance sales by independent agencies that handle products from multiple insurance companies, we will help ensure that customers have the opportunity to select appropriate products by updating our voluntary guideline to reflect the amendments to the Insurance Business Act and the Comprehensive Guidelines for Supervision of Insurance Companies, and by following up on improvements to the business structures of member companies.
Furthermore, from the perspective of promoting constructive communication between insurance companies and distributors, we, as an industry as a whole, including agencies, will pursue the best interests of customers by continuing to monitor the efforts of member companies to promote information sharing with distributors.
- Contributing to the improvement of financial wellbeing for every person
The LIAJ has been committed to enhancing society’s understanding of the importance of self-help and the need for an optimal combination of self-help, mutual assistance and public assistance, through education and awareness campaigns. As part of this initiative, we are collaborating with organisations including the Japan Financial Literacy and Education Corporation (J-FLEC), as well as the General Insurance Association of Japan and the Japan Institute of Life Insurance, to enhance financial literacy in the field of insurance.
As individual values and lifestyles diversify, life insurers are expected to provide an optimal combination of “protection” and “asset building” functions through their products in addition to the social security system, tailored to each individual’s needs.
Given this, we will promote insurance education initiatives utilising social media to further deepen understanding of self-help, mutual assistance and public assistance among a wide range of people, including younger generations. Furthermore, we will promote understanding of the role of life insurance by publicising “Self-Help Day” (28 May), a commemorative day designated by the LIAJ.
With regard to taxation, we understand that the tax deduction for life insurance premiums has been established, given the role of life insurance in complementing the social security system. For FY2026 and FY2027, this system has been expanded for child-rearing households with dependents under the age of 23.
We will provide easy-to-understand information on the tax deduction for life insurance premiums and its expansion to help people prepare for their future with greater peace of mind.
- Contributing to the realisation of a sustainable and prosperous society
The LIAJ has established priority items for achieving the United Nations’ Sustainable Development Goals within the life insurance industry and has been supporting member companies’ efforts.
In order to promote customer-oriented business conduct and to contribute to improving financial well-being for every person in the face of persisting uncertainty, it is essential to provide services that are convenient and that everyone can use with peace of mind, and to develop an environment within the industry where diverse talent can play an active role. The LIAJ believes that this will contribute to the realisation of a sustainable and prosperous society.
For this purpose, we are planning to compile a report on case studies of efforts made both domestically and globally to support our member companies’ efforts. We will also work to improve the accessibility and usability of “Handbook on Life Insurance” (tentative English title), an information booklet we have compiled for consumers, so that it can be used by a broader range of readers. This initiative will specifically cover readers who may have difficulty reading texts, as well as family members of policyholders and others who are not familiar with the Japanese language.
Furthermore, we will develop comprehensive guidelines to promote the active participation of diverse human resources, thereby contributing to the realisation of a sustainable and prosperous society with the life insurance industry working as one.
We will also continue to fulfil our role as the life insurance industry in building a “strong Japanese economy” set out in Japan’s Growth Strategy, including the realisation of a “Leading Asset Management Centre” as promoted by the government, by continuing to promote initiatives that improve the corporate value of investee companies and support sustainable economic growth, through responsible investment and financing as well as stewardship activities.
In addition to these three pillars of action, we will continue to foster an environment that maintains the trust of customers and ensures the sound development of the life insurance industry.
Specifically, we will continue requesting the expansion of the tax deduction for life insurance premiums, expressing our opinions on the expansion of the scope of business of Japan Post Insurance and advocating our opinions concerning issues related to accounting and regulation.
With regard to taxation, we will continue to request the expansion of the tax deduction for life insurance premiums to support and promote the various types of life coverage people need.
As for the expansion of the scope of business and the increase in the maximum insurance amount of Japan Post Insurance, it is essential to have fair competition conditions to ensure the improvement of consumer benefits in the mid- to long term.
That is why we will be monitoring the effect on the market and will express our opinion when circumstances dictate.
We will proactively express our opinions concerning issues related to accounting and regulation, based on international developments and the characteristics of the domestic life insurance business.
Additionally, we will communicate the LIAJ’s international activities both in Japan and abroad.
These are some of my commitments as I assume the role of Chairperson at the LIAJ. Precisely because we live in an era of persisting uncertainty, we will make the utmost efforts to address the various challenges over the coming year, with the aim of “Supporting flourishing lives and a prosperous society through peace of mind”.
We would highly appreciate your continued support and cooperation.