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Sompo Japan Nipponkoa’s IB Models in Insurance

17th February 2016 2nd Inclusive Business Forum for Asia

Masao Seki Senior Advisor on CSR

Sompo Japan Nipponkoa Insurance Inc.

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Corporate Profile

Sompo Japan Nipponkoa Insurance Inc.

URL : http://www.sjnk.co.jp/

Headquarter : Tokyo, Japan

Office in Japan

Sales Agencies : 64,371

Employees : 27,144

Net Premium Written : 2,181B JPY (18.1B USD)

: Sales Offices : 676 : Claims Service Offices : 448

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ＳＪＮＫインドネシア

PGA ソンポ

ＳＪＮＫコンサルティングコリア

UIC

カナダ支店（トロント）

マリチマ

ＳＪＮＫメキシコ

本社

SJNK （英国他 6 カ国）

南米安田

損保ジャパンアメリカ

OJSC IC Allianz,NKSJDivision

グアム支店

プノンペン駐在員事務所

ヨハネスブルグ駐在員事務所

SJNK 再保険

キャノピアス

Sompo Holdings Regional Headquarters Sompo Holdings Branches Sompo Japan Nipponkoa Insurance

ＳＪＮＫコンサルティングコリア カナダ支店

Headquarters

SJNKヨーロッパ

SJNK再保険(スイス）

Sompo Japan Nipponkoa Insurance

Global Operation

Overseas Offices : 210 Cities in 32 Countries

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Issue : Draught in Thailand

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Solution : Weather Index Insurance

Indices ;

temperature, rain fall, snow cover, wind velocity, etc.

Designed to hedge the weather-related risks,

i.e. ;

volatility of profit and /or expenses due to weather fluctuations

Claims are paid based on the weather index

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Merits : Weather Index Insurance

- Cost saving ⇒ Affordable premium for farmers

No actual loss survey needed - and it brings advantages of;

- Time saving ⇒ Quick payment to farmers

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Thailand

Tilling

Transplanting Flowering Harvesting

Sowing

Pictures: Embassy of Thailand website, etc.

JBIC (Japan bank for

International Cooperation)

Sompo Japan Nipponkoa Group

BAAC Thailand （ Bank for Agriculture and Agricultural Cooperatives ）

Risk Financing Solutions towards draught for Thai Farmers, 2010 -

Farmers

Khon kaen

“Weather Index Insurance” in Thailand

8 Risk Financing Solutions towards Agricultural Producers, 2014 -

・ An insurance product for agricultural producers in the island of Mindanao in southern Philippines.

“Typhoon Insurance” in Philippines

・The first insurance for the damage of typhoon in Philippine insurance industry

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Enhance climate resilience against crop damage of 30,000 small-scale farmers in over three countries in Southeast Asia by 2025.

Our Future Objectives

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BCtA is a global initiative hosted at the United Nations Development Programme (UNDP), which promotes businesses aimed at achieving both commercial success and sustainable development.

Business Call to Action (BCtA)

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Availability of reliable weather data

Challenges, Difficulties

Low awareness of insurance

Local partners for distribution

⇒Collaboration with local stakeholders is the key

APPENDIX

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1992 Rio Earth Summit as Origin of our CSR

Established Dept. of Global Environment

Expansion Stage (1997 - 2004)

Global Stage (2005 - Present)

2002 Issued CSR Report 1999 Launched First SRI Fund 1998 Issued Environmental Report 1997 Acquired ISO14001 Certification

2009 & 2010 Recognized as Global 100 “Most Sustainable Corporations in the World”

Primary Stage (1992 - 1996)

2006 Signed the UN Global Compact & UN Principles for Responsible Investment (PRI)

2009 Developed “Weather Index Insurance” in Thailand

2013 Developed the Pacific Catastrophe Risk Insurance Pilot Program

The Group’s Brief CSR History

2012 Joined Rio+20

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2011 Principles for Financial Action for the 21st Century Sompo Japan Nipponkoa, participated in the draft of the principle PFA

1995

2006

2000

2012 Principles for Sustainable Insurance Approx.70 Insurance companies as Signatories Sompo Japan Nipponkoa, participated in the draft of the principle

UN PRI; Principles for Responsible Investment 1,111 Signatories Sompo Japan Nipponkoa, the first insurance company in Japan

UN GC; United Nations Global Compact 10,600 Signatories (Business Signatories; 7,000)

Our Engagement

PSI

World Business Council for Sustainable Development

Approx, 200 Corporate Members. Sompo Japan Nipponkoa, the only financial member in Japan

15 Towards a Resilient, Inclusive and Sustainable Society

The Group’s 6 CSR Material Issues

Providing Sustainable & Responsible Financial Services

Tackling Global Environmental Issues -Focusing on Climate Change (Adaptation & Mitigation)

Community Involvement and Development -Partnership with NGOs/NPOs

Disclosing Transparent Information

Respect Human Rights and Promoting the Development of Human Resource and Diversity

Providing products and services that contribute to security, health, and wellbeing

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Weather Related Loss Events in Eastern Asia

Source: Munich Re NatCatSERVICE

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“Pacific Catastrophe Risk” Insurance

Risk Financing Solutions towards Catastrophe Risk

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Caring for Climate / UNEP “Business and Climate Change Adaptation

UNEP “The Business Case for the Green Economy”

UNFCCC “Private Sector Adaptation Initiative”

WBCSD “Tackling Climate Change on the Ground”

Included in Many Case Books

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“How Should We Adapt to Climate Change Risks ?”

Published on March 2014

Sompo Japan Nipponkoa Environment Foundation

-Climate resilient society -Multi-stakeholder approach

Research on Advocacy for Climate Change Adaptation

Downloadable at :

http://sjnkef.org/about/english/all.pdf