“Sincere, Easy-to-understand, Affordable, and Convenient”

 

Following the LIFENET Manifesto to focus on the customer experience, towards the preferred online life insurer for younger people.

Ryosuke Mori, the Presindent and Representative Director

Photo of Ryosuke Mori, President and Representative Director

Shifting the value proposition and delivery method of online life insurance

Based on LIFENET manifesto of "Sincere, Easy-to-understand, Affordable, and Convenient" Lifenet aims to be the online life insurance company of choice, particularly among young people, by strengthing customer experience. Since my appointment as president in 2018, I have been convinced of the future growth potential of online insurance  and have significantly shifted our strategy to prioritize growth. To deepen and accelerate the penetration of online life insurance's appeal, we recognized the need to evolve our customer touchpoints and have been promoting two important transformations.

 

The first is the transformation of our value proposition to align with the trend. While "affordability" was once a key value in online services, factors such as website and app usability, enhanced customer experience, and a sense of security have become increasingly important in recent years, in addition to price. Recognizing these changes in expectations and needs, we are actively working to improve convenience and customer experience beyond price competition. Our goal is to establish a brand that resonates with young people and provide new value in life insurance.

 

The second is the transformation of our delivery method. Since our business commencement, we have grown through direct sales to customers, primarily via direct channels. We have received significant support from customers who resonate with LIFENET manifesto and are attracted to the affordability and convenience of online life insurance. However, to gain support from a broader customer base, collaboration with partner companies possessing strong ecosystem is essential. In today's world, where vast financial and point-based ecosystem gain customer support and expand, the life insurance industry is also evolving to provide value in conjunction with the strategies and ecosystem of partner companies. Our first partner in this initiative was KDDI Corporation. Since initiating our collaboration in 2015, we have steadily expanded our business. Both companies share the common goal of providing long-term services to customers, and today, our products are offered within KDDI Group's extensive ecosystem, playing a vital role in enhancing group synergy. Subsequently, we have actively pursued collaborations with companies in various industries. In August 2023, we formed a capital and business alliance with Sumitomo Mitsui Financial Group and Sumitomo Mitsui Card, marking the beginning of our efforts in a new ecosystem.

 

These two transformations are not independent but deeply interconnected. By enhancing customer experience and strengthening our branding, we aim to become the leading online life insurance company of choice for partner companies. This creates a virtuous cycle where both the growth of our brand and collaboration with partner companies drive the overall expansion of the online life insurance market. We have already partnered with two major economic groups in Japan that wield significant influence, and I am excited about the new value we can offer customers through these ecosystem in the future.

 

Share price formation is a "collaborative effort" between Lifenet and investors

I have also focused on enhancing our communication with shareholders and investors in parallel with the transformation of our sales approach. While we strongly believe in the significant growth potential of online life insurance, we also recognize the need to sincerely acknowledge the current situation and change our methods of IR communication.

 

As part of this effort, we first presented new indicators that serve as materials for investment decisions for our shareholders and investors. We consider the net assets, including the future value generated by existing insurance contracts, as the theoretical value of the company and have established indicators aligned with this as management indicators. Furthermore, we became the first listed life insurance company in Japan to adopt International Financial Reporting Standards (IFRS). To ensure that our shareholders and investors appropriately understand our growth potential and profitability through IFRS-based information disclosure, I have actively engaged in dialogue. As a result, I have personally felt the expansion of our investor base and the increasing expectations for our company.

 

I believe that stock price formation is a "collaborative effort" with our shareholders and investors. While striving to achieve business growth and enhance corporate value through initiatives in key areas of our Mid-term Business plan, we are also further focusing on efforts to improve our valuation in the capital markets. By actively communicating information to our shareholders and investors, we aim to deepen their understanding of our business and encourage them to recognize our high growth potential and reflect future expectation in our stock price. This stock price formation process is truly a "collaborative effort" between our shareholders, investors, and Lifenet.

 

Moving forward, we will continue our efforts to enhance corporate value and improve market valuation while emphasizing dialogue with our shareholders and investors. We sincerely hope that investors will participate in this "collaborative effort," and we are confident that by doing so, we will generate significant returns for both our shareholders and our company in the future.

 

We sincerely appreciate your continued support for Lifenet's challenges and growth.

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