Lifenet formulated its management policy in November 2018 to achieve its stable growth in the future. 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.

 

Sustained growth of in-force business performance

 Lifenet has designated “Innovation of customer experience” and “Enhancement of promotion capabilities” as priority areas in our management policy and we are striving to maintain the strong new business performance, improve the surrender and lapse ratio, and achieve sustained growth in in-force business performance. We will also actively pursue investment in core systems to achieve these goals.

 First, to achieve “Innovation of customer experience,” Lifenet will aim to provide convenient life insurance services that exceed the expectations of customers. We will achieve this by designing and improving stress-free services from the perspective of the customer’s experience (CX) in the entire series of processes ranging from insurance consultation, to application and post-policy enrollment procedures, and submitting insurance claims and other benefit claims, in addition to developing insurance products that meet the needs of customers. More specifically, we will provide products and services mainly via smartphone by using digital data analysis and technology that make use of the strengths of online insurance. Lifenet also aims to increase customer engagement through the use of advertising and promotions, our contact center and website, SNS, and meetings for policyholders.

 Next, to achieve “Enhancement of promotion capabilities,” we will operate our business using two pivotal channels, the Internet channel and the agency channel, which includes white label products using partner company brands. We will work to increase the number of customers who choose the company through efforts to further raise its recognition and strengthen brand power via continuous advertising and promotion by utilizing the expertise we have accumulated through the Internet channel, which has been Lifenet’s main channel since the company first opened for business. At agency channel, we are cooperating with corporate partners that possess customer bases and brand power to expand white label business in selling our products under corporate partner brands. We have been selling au life insurance using KDDI Corporation as an agent since April 2016, and Seven Financial Service life insurance using Seven Financial Service Co., Ltd. as an agent since April 2020, with the goal of providing Lifenet’s comprehensible, cost-competitive, convenient products and services to a wider range of customer segments.

Securing profitability and financial soundness

 Lifenet aims to utilize the strengths and experience in online life insurance it has cultivated thus far to improve marketing expense efficiency along with growing new business performance. We will also work to improve operating expense efficiency in operating expenses excluding marketing expenses by continuing to pursue company-wide initiatives aimed at improving productivity, including revising operating processes and automating operations through the use of technology. It is important to secure sound financial conditions to serve as the base for achieving sustained growth. As a means, we have been participating in reinsurance transactions from fiscal 2019 by modified co-insurance on part of new business to ease the temporary burden imposed on statutory capital by expenses associated with new business. We will also secure capital sufficiency on an economic value basis in addition to the solvency margin ratio and other indicators of financial soundness, based on our newly established basic policy on risk appetite.