We have found that many people around the world resonate with the philosophy and value chain story of CSV x DX, which aims to create a better future through our collaboration with customers to address issues for local communities and society at large.
Telematics auto insurance (hereafter telematics insurance), the AD product which best epitomizes CSV x DX, now boasts more than 1.8 million vehicles insured in Japan. By leveraging digital technologies through DX, telematics insurance not only supports safe driving by our customers but makes it possible to identify potential risk locations through the aggregation of driving data. By sharing this data with regional governments, we, in partnership with our telematics insurance policyholders, are working to create neighborhoods that are safe and secure.
Our initiatives which capitalize on telematics insurance are widely supported by many of our customers, as well as society at large and the local communities we serve. One such example is a new traffic safety program developed together with Fukui Prefecture and the Fukui Prefectural Police Force. We received wide recognition for the support we provided to create and execute highly rigorous traffic safety proposals. This culminated in AD being honored with the Prime Minister’s Award as the champion of Winter Digi-den Koshien (Winter National Championship for Achieving a Digital Garden City Nation), sponsored by the Cabinet Secretariat last year. This program was applauded as an example of an initiative that enhances the convenience and fullness of residents’ lives and revitalizes regional industry by leveraging telematics insurance (digital technologies).
AD’s telematics insurance also contributes to addressing the increasingly urgent issues related to climate change, biodiversity, and pollution. Our telematics insurance encourages customers to drive safely but also contributes to reducing fuel consumption, thereby reducing CO2 emissions. This is achieved through functions that allow drivers to visualize CO2 emission reductions that result from safe driving and a framework for discounting insurance premiums to reflect safe driving behaviors. By lowering the frequency of traffic accidents, telematics insurance also helps reduce spare parts and waste.
Telematics insurance is generating significant results not only in Japan but overseas as well. In particular, we have had notable success in Thailand, selling under the slogan of ‘Enjoy Safety, Make Better Society’. We exceeded 200,000 vehicles under contract in a single year, reflecting the broad support for AD’s telematics insurance. The criteria for choosing auto insurance by consumers in Thailand has changed: we believe our product has been widely embraced and supported because it truly embodies our slogan of enjoying safety while also contributing to creating a better society.
AD is also advancing other initiatives separate from telematics insurance to broaden the benefits of the CSV x DX value chain to a wider circle of local communities and society at large, both in Japan and overseas. For instance, AD is promoting the use of AI to analyze satellite images in the event of a typhoon to quantify the average loss on buildings in individual regions. It is also leveraging the use of sensors for senior monitoring services to ensure single-person elderly households have access to a stable supply of homes.
To further expand our CSV x DX efforts to a broader range of fields in future, we established Aioi R&D Lab-Oxford (hereafter R&D Lab) in November of last year. R&D Lab is a joint research institute which will focus on developing solutions to address a wide range of social and local community issues not covered under the existing collaboration with Mind Foundry (hereafter MF), the Oxford University AI venture.
R&D Lab will capitalize on the sophisticated AI technologies of MF and the expertise of world-renowned Oxford University professors to address social and local community issues and create new value in insurance. The fruits of its efforts will be widely utilized in a broad array of domestic and overseas businesses.
In continuing to develop and expand CSV x DX further in collaboration with our customers, the most important management resource for AD is diverse human capital; diversity, equity, and inclusion in particular is key. We believe that bringing together diverse human resources that respect others’ ideas, sensibilities and values will enable AD to continuously create new value, leading to the development of solutions to social and local community issues. AD will continue to foster an environment that will give each of our employees the freedom to challenge themselves.
In closing, the catchphrase for CSV x DX is ‘Together create a peace of mind not yet known’. We continue to accelerate our efforts to address the issues faced by local communities and society at large to increase the number of people that viscerally experience a peace of mind not yet known.
AD will maintain its focus on communities in aiming to create a sustainable future together with all of our stakeholders: our customers in Japan and overseas, members of local communities and society at large, our agents and business partners.
We humbly ask for your continued support.
Thank you.
