Japan: GIAJ Chairman Lists Measures to Improve Non-Life Insurance Operations
The General Insurance Association of Japan (GIAJ) chairman, Mr. Hiroaki Shirota, has announced several measures aimed at improving the industry’s operating environment. Following a board meeting on June 12, Mr. Shirota outlined the initiatives in a statement.
Initiatives to Restore Trust
The GIAJ has taken steps to address information leak incidents reported in 2024. Measures include:
- Conducting surveys of member companies
- Requesting thorough recurrence prevention measures
- Holding information management compliance seminars
- Formulating Compliance Guidelines for Solicitation on Information Management
The association will continue to monitor progress and ensure appropriate information handling throughout the industry. The GIAJ also plans to submit its views on proposed amendments to the “Comprehensive Guidelines for Supervision for Insurance Companies” to clarify interpretations and ensure consistent operational practices among member companies.
Improving Business Quality and Compliance
To create a healthy competitive environment, the GIAJ is:
- Developing new guidelines to reassess outdated industry practices
- Revising guidelines on the “secondment of employees” based on business improvement orders from the Financial Services Agency (FSA)
- Organizing basic policies related to inappropriate facilitation as an addendum to the “Compliance Guide for Solicitation” for agents and solicitors
- Establishing a ‘whistle-blowing contact’ for member companies
The GIAJ is also studying new co-insurance underwriting methods, including the “Differential Method” and the “Arranger Method.”
Enhancing Insurance Literacy and Digitalization
To promote understanding of corporate insurance, the GIAJ has:
- Created the “Risk Management and General Insurance” guide for companies
- Staged “Risk Management Seminars for Companies”
The association has launched “One-JIBAI,” an industry-wide joint system for Compulsory Automobile Liability Insurance (CALI), enabling non-face-to-face CALI procedures and cashless premium payments.
Strengthening Natural Disaster Response
The GIAJ has been working to strengthen natural disaster response capabilities, including:
- Holding an event in Kobe City to promote disaster preparedness
- Developing an industry-wide joint system for earthquake loss/damage declaration support
- Collaborating with related ministries and local governments on safety education programs
In conclusion, Mr. Shirota emphasized the importance of enhancing the effectiveness of these initiatives and ensuring they permeate throughout the industry to achieve transformation and regain customer trust.
