With the background and the details of the formulation of Lifenet's management policy business plan, the following are the major challenges for Lifenet to address.

 

Response to COVID-19

 COVID-19 has caused rapid changes in the business environment and behavioral patterns of customers. Lifenet will develop systems and take other steps to enable the company to respond flexibly to these major changes and provide products and services that meet the needs of the times. From the perspective of employee workstyles, Lifenet will enhance internal structure that make it possible to improve productivity and operate our business efficiently while respecting diversity. We will also implement initiatives aimed at reinforcing organizational strengths.

Sustained growth of in-force business performance

 We aim to achieve double-digit growth in in-force business performance by sustained growth in new business performance and improvement in the surrender and lapse ratio. We will implement initiatives in the priority areas of “innovation of customer experience” and “enhancement of promotion capabilities.”

 To achieve “innovation of customer experience,” we will design and develop stress-free products and services from the customer’s point of view and increase customer engagement with the company to build long-term relationships of trust and expand in-force business. We will achieve high-quality communication through the means best suited to each customer and provide products and services that meet their individual needs by focusing on digital data analysis and through integrated management of customer contact points.

 Lifenet also plans to launch new long-term disability insurance product Hataraku-Hito 3 in June 2021. As the first company in the life insurance industry to start sales of long-term disability insurance for individuals, in addition to just securing the risk of being unable to work, we enhance coverage based on the novel concept of supporting recovery and a return to work. We believe what Lifenet provide customers is not only life insurance coverage alone, but a better customer experience in all processes where we interact with our customers. We pursue the improvement of the value of that experience.

 To achieve “enhancement of promotion capabilities,” we will provide Lifenet value to more customers through two channels: The Internet channel and the white label channel.

 In the Internet channel, we will pursue marketing targeted mainly at young people in addition to further enhancing brand power through ongoing investment in television commercials and effective use of online advertising. In the white label channel, we will continue to utilize the brand power of corporate partners to provide Lifenet products and services that are comprehensible, cost-competitive, and convenient to the customer bases of the partners. Since April 2020, we have been selling products through Seven Financial Service Co., Ltd., in addition to selling au Life Insurance through KDDI CORPORATION. Lifenet has also entered a business alliance with Money Forward, Inc. and will provide services with them from the summer of 2021.

Transformation into a Internet Service Company of Life Insurance

 Lifenet aims to be a leading company driving growth of the online insurance market and is accelerating efforts to become an Internet service company of life insurance. More specifically, we aim to build an online life insurance platform that connects customers with life insurance services by utilizing the expertise and our website traffic we have accumulated since the company was established.

 As one part of that plan, our subsidiary, LIFENET MIRAI Inc., was established and will launch online insurance agency business from July 2021. Our subsidiary is a joint venture of Lifenet and MILIZE Inc. LIFENET MIRAI intends to utilize the AI and financial engineering technology that MILIZE possesses to provide greater convenience in insurance sales while also offering the solution regarding life insurance problems to customers with providing close-to-the-customer services.

 We will continue to invest in system infrastructure and will develop services for customers more rapidly by utilizing the system infrastructure.