Introducing the strengths of Lifenet, which continues to be a leading online life insurance company. 

1. Simple products specializing in online

Our products are characterized by simple and easy-to-understand product content, and low insurance premiums. Our business model is not a conventional "push-type" insurance sales model, but rather a "pull-type" business model that is customer-oriented, and we have designed our products to be easy to understand so that customers can understand and select them themselves.

 

In addition, in the past, life insurance was sold mainly through sales staff, and the costs of personnel, stores, and other expenses were ultimately passed on to customers in the form of insurance premiums. In this context, we have been able to offer insurance at low premiums by selling our products over the Internet, thereby reducing personnel and other costs.

Structure of premium (Term life insurance)

 

Diagram showing a breakdown of premium payments for term life insurance and comparing products sold face-to-face to Lifenet Insurance’s online products. Face-to-face product prices include net premiums as well as load charges, including office costs, personnel costs, and utility costs. Lifenet Insurance reduces the load charges so the net premium makes up a high percentage of the product price.

By reducing sales costs, we have been able to save our customers approximately 100,000 yen per year in insurance premiums, and we offer insurance products with price advantages in long-term insurance contracts.

The average amount saved by those who reported reducing their premiums after switching to Lifenet*1

Illustration showing the average yearly savings for people who change to Lifenet Insurance. The average standard premium payment is ¥16,102 per month, and the average premium payment for Lifenet Insurance is ¥7,773. That saves ¥8,329 per month and a total of ¥99,948 per year.
  1. 2023 survey results of the “Customer-oriented business management policy” by Lifenet. Average annual cost saving does not take into account any changes in scope of insurance coverage.

2. Sophisticated UI/UX

In our medium-term plan, "Tech & Service" is a priority area, and we continue to sophisticate our UI/UX from the customer's perspective. From considering insurance to claiming benefits, all procedures can be completed on a smartphone, realizing the convenience unique to online life insurance. With intuitive operability and easy-to-understand information design, we have created an environment where customers can consult, apply, and claim benefits 24 hours a day, 365 days a year, according to their lifestyle.

Full smartphone accessibility from choosing a policy to claim payments

Diagram showing the four-step process that can be completed on a smartphone from insurance selection to claim payments. The four steps are consultation, application, procedures while enrolled in a policy, and claim payment. The consultation step provides a premium price quote in 10 seconds. The application step is paperless. Procedures while enrolled in a policy can be completed on the personal insurance webpage. Benefit claims are accepted online 24 hours. An image shows that the satisfaction rate for claim payments is 96%.

Full smartphone accessibility from choosing a policy to claim payments

Diagram showing the four-step process that can be completed on a smartphone from insurance selection to claim payments. The four steps are consultation, application, procedures while enrolled in a policy, and claim payment. The consultation step provides a premium price quote in 10 seconds. The application step is paperless. Procedures while enrolled in a policy can be completed on the personal insurance webpage. Benefit claims are accepted online 24 hours. An image shows that the satisfaction rate for claim payments is 96%.
  1. It is possible to omit the medical certification submission only for medical insurance. The submission is required under certain conditions.
  2. Source from the survey in May 2024 (Respondents: 1.594)

3. Diverse talent gathering to the Lifenet Manifesto

We actively recruit people with diverse backgrounds, including mid-career hires and those from other industries, who share our customer-centric Lifenet Manifesto, regardless of their experience in the life insurance industry. Under the Manifesto, our management team and employees with diverse experience, knowledge, and abilities are driving innovation in the industry to provide new value that is not bound by the conventions of the life insurance industry.

Percentage of mid-career hires from other industries*1

From outside the insurance industry

61％

  1. As of end-June 2023, the percentage of mid-career hires from outside the life insurance industry.

4. Unique customer base

Our online-focused customer experience has gained support from younger generations who prefer digital services, and approximately 70% of our new customers are between the ages of 20 and 40, compared to the industry average of 50%. While the average household penetration rate in the Japanese life insurance industry is about 90%, about half of our customers choose us as their "first insurance."

Number of new policies by age group

Pie chart showing the industry average data for the age distribution of new policy contracts. It highlights that Lifenet Insurance has a higher proportion of policyholders in their 20s to 40s.

 

 

Pie chart showing Lifenet Insurance's data on the age distribution of new policy contracts. It illustrates that the proportion of policyholders in their 20s to 40s is high at 73% in total, indicating a larger share of younger customers compared to the industry average.

Applicant Status*3

 

Pie chart showing the insurance status of new applicants for Lifenet insurance. The highest percentage of applicants, at 56%, are people who applied for their first insurance policy, 22% switched from other providers, 13% supplemented other provider policies, and 8% added to or transferred from existing Lifenet policies.
  1. Annual statistics on customer age and gender (FY2023) compiled by The Life Insurance Association of Japan. Based on number of new policies.
  2. Lifenet Insurance new customer data (FY2023, N = 72,434) compiled by Lifenet customer survey.
  3. FY2023 valid responses: 922.

5. Partner business with other industries

We are actively developing partnerships with various other industries, not limited to the insurance industry. Our unique online business model meets the needs of companies in other industries that are entering the insurance business, and by leveraging the strengths of our partner companies, we are expanding our customer base.

 

For details, please see our Mid-term Business Plan.