By concentrating the strengths and know-how of the group and taking on the challenge of new initiatives, we will establish a unique customer experience value (CX) in the area of asset formation and succession and deliver well-being to all customers' daily lives. increase.
Background / Issues
In a 100 year-life society, uneasiness surrounding assets for one's later life has grown further, with asset formation for later life through self-help and extension of asset life being recognized as social issues. To support the well-being of our customers as their "lifelong partner" amid such an environment, we believe that it necessary to be close to customers from the stage of asset formation to extension of asset life at postretirement and the succession of assets to the next generation to provide solutions that are optimized for each customer.
Up to this point, Dai-ichi Life Group has built up its strengths and expertise in the various business domains related to asset formation and succession, which include individual savings business, group pension business, asset management business, bancassurance business and mutual fund business sold over bank counters.
To face social issues and further close our proximity with our customers' lives, it is necessary to create new values as the entire Group while bringing together strengths and expertise of the Group and complementing them organically. Moreover, rather than promoting fragmented strategies for our products and sales channels, it is vital to expand services with a higher degree of convenience from the customer's perspective based on the unified operation of a value chain that also integrates the asset formation and succession domains.
After unified value chain operation, by also speedily reinforcing capabilities that are lacking in Dai-ichi Life Group such as asset management based on digital platforms that is implemented through cooperation with external parties, we will prepare our infrastructure for creation of new value. In particular, by providing digital asset formation services, which have been lacking in our efforts so far, we have expanded contact points with new customers such as the young generation and realized more familiar support for existing customers.
In addition, by integrating with existing face-to-face channels, we will establish a CX in the asset formation and wealth succession domains that is unique to Dai-ichi Life Group. By aggressively taking on the challenge of such new initiatives, we will accelerate the transformation of Dai-ichi Life Group as we move forward. Moreover, by leveraging the Group's combined strengths, we will considerably enhance both our conventional main focus of "protection" and our CX from asset formation and succession. In doing so, we will aim to realize the well-being of our customers in their daily lives and aim to resolve social issues.
Easily accessible asset formation support on daily basis
As a form of easily accessible asset formation support offered through digital tools, Dai-ichi Life introduced smartphone app "DC No Sapuri" to customers who have joined defined contribution plans. This app provides education on investing and asset formation support through means such as visualizing annuity assets, illustrating risk based asset allocation with the use of an equipped robot advisor function, and yield estimations required in order to achieve targets. We are also planning to provide an "Retirement Account Dashboard (Future Planning Dashboard)" application that visualizes income and expenditure in later life, including public and corporate pensions, and will offer further support for customers' asset formation and the extension of those assets life. Additionally, to enhance connections with customers, we are also looking into expanding new services such as adding customer account functionality and asset management tools. By utilizing such easily accessible tools along with roviding consulting support through our existing face-to-face channels, we will accelerate creation of new experiential values for our customers.
The role played by Dai-ichi Frontier Life
The Dai-ichi Life Group sells an extensive lineup of products that help customers to build assets through Dai-ichi Frontier Life. In fiscal 2019, Dai-ichi Frontier Life flexibly developed and sold products that help extend the life of customer assets in a flexible manner. These include level premium foreign-currency denominated products that facilitate asset formation with a fixed monthly payment, and single-premium foreign currency- and yen-denominated products that can increase the amount received at maturity by reducing death coverage and surrender value during the period of investment.
In addition, Dai-ichi Frontier Life provides its products through Dai-ichi Life's Total Life Plan Designers as well as agencies that include more than 200 financial institutions all over Japan, providing extensive support for asset formation to customers through tailored consulting. As proposals for foreign currency-denominated products require detailed and easy-to-understand explanations that offer customer support, Dai-ichi Frontier Life has enhanced its explanatory tools for customers to communicate product features in a way that is easy to understand and provides original training aimed at upgrading the consulting skills of agency sales staff. We are helping to solve the challenges of the 100-year life era through such product and service enhancements.
Enhancement of product lineup
We are planning to enhance our product lineup to also include non-insurance domains to accommodate diverse customer needs in the asset formation and succession domains. We are exploring products and services that flexibly accommodate our customers' asset formation and succession needs, including considering the expansion of products that make use of preferential tax systems such as NISA (tax exemption system for small investments) and iDeCo (individual-type defined contribution pension plan) and development of products that offer returns based on actual investment performance and factor in ultra-low interest rate environments.
As lifestyles become increasingly diverse, we will offer optimal solutions that suit each customer through reinforcing our products and consulting capabilities. Additionally, in providing experiential value in the asset formation and succession domains to our customers, we believe combining the strengths of Dai-ichi Life Group will also be important. We will leverage the strengths and expertise that the Group has cultivated over time, including the asset management capability of Group company Asset Management
Flexible Development of Corporate Pension Products
Dai-ichi Life is proactively developing new products to provide optimum solutions that match the asset investment needs of defined-benefit corporate pension customers. In addition to “Separate Account Covenant General Account No. 2” which flexibly control risk in response to the market environment and others, we also started selling
“Separate Account Covenant No. 2” in April 2020 to facilitate customization of each customer's investment strategy.
Moreover, we are working to provide support for extending the life of assets for defined-contribution pension customers through such means as offering a service in which a robot adviser gives examples of asset allocation to match enrollee attributes.
Enhancing Service Using Financial Gerontology
Dai-ichi Frontier Life is implementing in-house education and training for agencies on financial gerontology*2 to provide service that accommodates older customers.
The Financial Gerontology Training developed in-house for agencies incorporates programs that introduce how to look for signs of cognitive disorder in a natural conversation, and be aware of psychological issues that are specific to the elderly in addition to basic knowledge about dementia. The training is provided to each agency.
Financial gerontology: a new field of research that analyzes and studies the economic challenges that arise due to longevity and aging, such as economic activity of the elderly and asset selection, in collaboration with related research areas, primarily economics, and seeks to solve those challenges.
Financial Literacy Education
Dai-ichi Frontier Life runs a Finance and Economics Education Endowed Course at Waseda University to help increase financial and economics literacy among students who will lead the next generation. In addition, the company has run trial classes for "Life Simulation Game: Frontier World," developed with the aim of financial education for children, at elementary schools in Himeji (a city in Hyogo prefecture) with plans to expand the classes nationwide in the future.