As part of reforming our business, we are promoting a customer-first approach to our business operations and implementing changes to transform ourselves into a truly customer-centric company. To promote changes in corporate culture throughout the organization, the senior management team, myself included, is engaging with employees in each location to better understand regional initiatives and to reflect the input of employees. We are also undertaking operational reforms, including a review of business practices, with the introduction of a performance evaluation system that emphasizes the process, and “CSV x DX-focused sales *1” initiatives. In addition, we are incorporating opinions from outside the company via the Corporate Innovation Promotion Committee, and implementing transformational changes without being bound by our company’s conventional wisdom.
- *1Sales initiatives focused on providing value to customers and society at large.
Our customer-centric approach to managing our business is based on our vision of continuing to support the future of our customers, local communities and society at large through CSV x DX, as outlined in our Medium-term Business Plan (2022-2025). The CSV x DX story, which is rooted in our achievements to date of promoting innovation, diversity and ‘community-based’, has been well received by numerous customers, communities and society at large, both in Japan and overseas.
We sell telematics auto insurance, a product that epitomizes CSV x DX, under the concept of 'SAFE TOWN DRIVE', which supports the creation of safe and secure neighborhoods. The number of vehicles insured under telematics auto insurance now exceeds 2 million. The product not only supports safe driving by the customer but also enables the visualization of risk points by analyzing customer driving data. The data is used to create a ‘traffic safety map’, and also contributes to the safety of local communities through the ‘Road Surface Condition Monitoring System’ which identifies the damaged areas of the road surface.
Through such initiatives, we aim to contribute to the development of safer local communities and neighborhoods, by promoting safe driving practices and preventing accidents. I am confident these safer communities will result in better protection for you and your loved ones.
The CSV x DX story is being well received by our customers, local communities and society and has allowed us to widen the circle of partners keen to address social issues. We began entering into collaboration agreements with local communities and universities in 2016; the number of agreements has now risen to 692. As our network of communities expands, we have been working to address the issues faced by local communities, with the cooperation of many partners, including the Toyota Group and Nippon Life Insurance.
Our initiatives overseas with the Toyota Group, where we provide insurance products and services to Toyota and Lexus users, have expanded from 14 countries in 2010 to 38 countries. As a result, the number of vehicles insured by our telematics auto insurance overseas now exceeds 600,000.
There has been further evolution in our business collaboration with Nippon Life as well. Through joint initiatives to strengthen new customer acquisition and address local community issues, we have been able to develop and propose products that are well suited to our customers. This has allowed us to provide many customers with a sense of security.
The CSV x DX story is also being taken up by our overseas partners. For instance, Aioi R&D Lab-Oxford – jointly established with University of Oxford's spin-out AI venture Mind Foundry – developed ‘Nature Intelligence Solutions*2’ in partnership with Natural Capital Research in the UK, which was launched in February 2025. In addition, the Aioi R&D Lab-Oxford also was recognized for developing an ‘AI fraud detection system’, which is aimed at eliminating fraudulent insurance claims for auto repairs, at the Insurance Asia Awards 2024. Furthermore, the ‘Bridge Inspection Support Tool’, which uses AI to detect and assess damage conditions for bridge structures using photographs, was recognized at Insurance Awards Asia in 2025. Our efforts to address social issues are highly rated outside of Japan as well.
- *2Service which uses new technology to diagnose business risk related to natural capital and biodiversity.
The environment surrounding our customers is changing daily. The issues of price fixing and information leaks have been a catalyst: the strengthening of oversight and regulations and the elimination of strategic equity holdings are leading to a further intensification of competition within the insurance industry. We view the changing environment as an opportunity. We strongly aspire to lead a new non-life insurance industry and to become the consistent company of choice for our customers.
With the industry experiencing dramatic change, we have decided to move forward with concrete discussions and preparatory measures toward a merger on or around April 2027 with Mitsui Sumitomo Insurance. I believe that a merger will allow each company to maximize their unique features and characteristics, making it possible to achieve an even greater value proposition for the future of our customers, local communities and society. We remain focused on achieving this aim as a top global insurance and finance group.
We will further accelerate our initiatives around the challenges we are tackling and our activities to build strengths for the new company. We remain passionate about devoting all our efforts to sharing the CSV x DX story with each and every one of our customers and will continue to focus on increasing the number of people that viscerally experience a peace of mind not yet known, as embodied by the catchphrase for CSV x DX: 'Together create a peace of mind not yet known'.
Each of our officers and employees will remain committed to working together with a customer-centric focus to continue to be the company of choice for our customers, local communities and society. We truly appreciate your support and kindly ask for your continued cooperation.
