Lifenet refers to Sustainability Accounting Standards Board (SASB) standards for the insurance industry.

As described below, we will promote initiatives for our stakeholders, including “customers,” “society” and “employees,” while continuing to enhance “corporate governance,” which is the foundation of our management.

We have established the following in the Manifesto: Listening to what our customers are saying. Recognizing their needs and acting accordingly. Allowing our actions to be borne out of their voices and needs. Delivering the caliber of products and services that we would feel confident recommending to our own friends and families.

We will strive to “create the future for our customers” by promoting customer-oriented business operation so that our customers can understand, accept and select the coverage they truly need in their lives.

• Customer-Oriented Business Conduct Principles
  We formulated customer-oriented business conduct principles in 2017 to further operate business from the customer’s point of view. Moreover, we periodically disclose the status of our initiatives under the Principles and the achievement indicators to promote even more specific efforts.
  Announcement of the Results of Our Initiatives in fiscal 2022 for Our Customer-Oriented Business Conduct Principles (Japanese version only)
  
  We have also disclosed in chronological order the content of communication with customers (e.g., the regular gatherings of policyholders and our response to customer questions and grievances) in the Annual Report 2023 (Japanese version only): 5. Communication with Customers on page 27.
   

• Personal Information Protection Policy
  We recognize that it is an important social responsibility as a company to appropriately handle the valuable information of our customers, and we have established a personal information protection policy. All our officers and employees comply with relevant laws and ordinances (e.g., laws and guidelines on the protection of personal information) so that we do our utmost to protect the personal information of our customers.

  Privacy Statement (Japanese version only)
   

• Basic Policy of Information Security
  We recognize that ensuring information security is one of the most important issues for the smooth operation of life insurance online. We have been building a robust information security system to protect our information assets.
  Basic policy of Information Security (Japanese version only)

Chapter 2 of the Manifest concerns our pursuit of comprehensible life insurance. Our products are specialized in pure protection with no surrender value. We provide simple and comprehensible coverage.

We also introduce the basic knowledge of life insurance, how to select insurance and the social security benefits so that our customers themselves can understand, accept and select the coverage which is suitable for themselves.

Tips on How to Choose Life Insurance! (Japanese version only)

Moreover, we have provided careful support with our customers with using the telephone and chat even though we offer our products and services online. We also pursue comprehensibility when customers claim insurance claims and benefits. We deliver the information on claims not only through our website, but through mail once a year, and support our customers firmly. 

Chapter 3 of the Manifesto states our aim to make life insurance premiums affordable. We propose the necessary coverage to our customers with appropriate insurance premiums. We disclose the breakdown of life insurance premiums so that our customers can understand, accept and select products with being convinced.

Aiming for Complete Information Disclosure: Working on the Full Disclosure of the Additional Insurance Premium Rate (Japanese version only) 

Lifenet is the only life insurer in Japan which disclose the breakdown of insurance premium.

We utilize the Internet in all points of contact with our customers, and we provide highly convenient services to them while reducing the use of paper resources .

We have developed an environment which enables customers to request insurance consultation, apply for insurance, undergo procedures during their contracts and claim benefits over the Internet according to their lifestyle 24 hours a day, 365 days a year.
 

Our products and services have been praised by our customers.

We ranked highest for three consecutive years in overall customer satisfaction, and also awarded top ratings in two factors – Price and Forms and documents. – in J.D. Power 2023 Japan Life Insurance Contract Customer Satisfaction Study＜Direct Distribution Channel Segment＞ .

In addition, we have been awarded three stars in two categories for the tenth time, the most in the industry, in the HDI Benchmarking rating chosen by internationally certified professional evaluators and consumer volunteers.

Lifenet Ranked “1st Place of Direct Life Insurance” for 3rd Consecutive Year in J.D. Power 2023 Japan Life Insurance Contract Customer Satisfaction Study

Lifenet’s Contact Center and Website Awarded 3 Stars in the HDI Benchmarking for the 10th Time, the Industry Record

We started our business in 2008 as a new life insurance company utilizing the Internet in the life insurance industry, where the main sales channels were sales representatives. To this day, we have been providing products and services unique to online life insurance companies. Going forward, we aim to provide new value through life insurance while leveraging the strengths of both our own and our partner companies.
In addition, we will take initiatives on climate change and the global environment. As a life insurance company engaged in the asset management business, we will also include ESG considerations in our investment. Through these initiatives, we will strive to “create the future for a better society”.

We collaborate with corporate partners that have a strong customer base and advanced brand power to deliver our new insurance value proposition to even more customers.
 

In the life insurance industry as well as other financial industries, we believe that shifting to online is structural and irreversible change. We recognize that we need to provide comprehensible and convenient products and services online in all processes involved in life insurance like search, consultation, enrollment, maintenance, review and claim. Therefore, we established a subsidiary in May 2021, and it started business in July. We are building an online life insurance platform to meet the expectations of our customers.

We recognize that it is essential to manage insurance premiums which we received over a long time safely and reliably to pay insurance claims to our policyholders. We have established an asset management policy and have been managing the assets safely and reliably.
Asset Management Policy (Japanese version only)
 
We have also disclosed an overview of our asset management in the Annual Report 2023 (Japanese version only): 4. Indicators regarding Asset Management on page 73.

In addition, given the nature of life insurance as a long-term business and the achievement of a sustainable society, we invest with ESG considerations in the context of investment performance and risks. 

As our business model focuses on the Internet since the beginning of the business, we are contributing to the reduction of paper resources and GHG (greenhouse gas) emissions by not having branches and sales offices.

We recognize the potential impact of climate change on the life insurance industry, including Lifenet, as a business risk. We will promote initiatives to address climate change in a medium- and long-term perspective.

Regarding GHG emissions from our office (Kojimachi NK Building) in fiscal 2022, Scope 1 (direct emissions by Lifenet) was 25.6 t-CO2, and Scope 2 (emissions from the use of electricity supplied by other companies) was 79.7 t-CO2.

For details, please refer to the Securities Report for fiscal 2022 (Japanese version only): 2. Initiatives to Solve Social Issues, a. Addressing Climate Change on page 18.

We believe that in order to provide new value of life insurance for the diversified customer needs and society while flexibly responding to the changing times, it is important to create an organization in which employees themselves have diverse perspectives and respect each other. At the same time, we will provide employees with opportunities for each of them to grow and an environment in which they feel they want to grow and can work in a healthy, cheerful, and positive manner. We will strive to “create the future with our employees” so that the growth of our employees will lead to further growth of our company.

Regarding our human capital development policy and internal environmental development policy, as well as indicators and targets based on these policies and our performance in fiscal 2022, please refer to the Securities Report for fiscal 2022 (Japanese version only): (5) Strategies, Indicators and Targets Related to Human Capital on page 16 and 17.

With the aim of creating a diverse organization, our recruitment policy promotes diversity. Employees from diverse backgrounds have come together in our company, and we have received high evaluations for our diversity initiatives from external organizations.

• Job Applicants
  In our recruitment policy, we have established “Inclusion Recruitment”, that is to face each personal individuality. Under this policy, we are working on the following three points.
  (1) We provide periodic recruitment (new graduate recruitment) to everyone applicable under the age of 30.
  (2) We are building the foundations so that LGBTQ and all other sexualities can work as they really are.
  (3) We are creating an environment in which our employees can demonstrate their abilities to the fullest regardless of disabilities.

  We have also stated guiding principles in our Recruitment Manifesto concerning periodic recruitment. 
  Recruitment Policy (Japanese version only)
  The Recruitment Manifesto (Japanese version only)

• Employees
  Based on our recruitment policy, Lifenet has employees with various backgrounds. Approximately 60% of our mid-career recruits come from other industries. We believe that we can providing products and services from the customer’s point of view through discussions by employees with diverse personal histories. We have disclosed our employee situation in the Annual Report 2023 (Japanese version only): 3. Employee Situation on page 18.

  We are also training employees to respect diversity. We have introduced a mentor system and conduct one-on-one interviews to boost individual challenges and growth. In addition, we conduct an anonymous employee engagement survey four times a year. We measure engagement from the perspective of whether our employees can proactively engage in their work and whether they maintain a voluntary willingness to contribute to the organization. Furthermore, we have formed a Diversity Team across departments in our company. It is aiming to cultivate an organizational culture that accepts diverse values.

Our Initiative for Customers
With the increasing demand from same-sex couples for life insurance companies to offer products to meet their needs, we expanded our range of designated beneficiaries of term-life insurance products in November 2015. Now we accept same-sex partners who meet specific criteria such as duration of cohabitation as the beneficiaries.

Lifenet Expands Range of Designatable Beneficiaries
Website: Life Insurance for Your Partners (Japanese version only)

Recognition of Our Initiatives
We have been recognized for our LGBTQ initiatives. We have been awarded the highest rating of Gold in the PRIDE Index for the 8th consecutive year.

We are promoting initiatives to support work styles that match the lifestyles of our employees. We believe that the initiatives contribute to continually produce even better products and services from the customer’s point of view and to improve the productivity of our employees.

Our employees can take leave before and after childbirth and childcare leave. We have also introduced a special paid leave program for employees and their families to undergo treatment for illnesses. In addition, we introduced a working from home program even before the outbreak of COVID-19, and proactively allow employees to have multiple jobs. 

Moreover, we have made the LIFENET INSURANCE Health Management Declaration (Japanese version only). Under the declaration, we are continuously promoting the initiatives to keep healthy both physically and mentally. In addition, we have introduced a personnel system to respond to social changes such as the need to support those who will undergo treatment while working even after being diagnosed with cancer. The system provides support for our employee who get cancer treatment while working, and we are making effort to develop a comfortable working environment.

We have introduced the employee stock ownership plan in order to reward employees’ contributions by providing incentives associated with increased corporate value, to improve employee engagement by enhancing employee benefits, and to further promote value sharing with shareholders, not only among directors, but also among employees. We are also working to promote membership and expansion in the employee stock ownership plan.
In October 2018, we increased the percentage of incentive subsidy from 5% to 25%. Also, in May 2021, the membership was expanded to include not only full-time employees but highly specialized part-time employees and contract employees who are contracted for six months or longer as well.
As of the end of March 2023, the participation rate for the employee stock ownership plan is 63%.

We have established the following as our guiding principles in the Manifesto: Being a “straight-shooter.” Committing to transparency. Communicating openly about our management team, our products, and our employees. Acting in good faith means always taking the high road when it comes to compliance and ethics.
We will continue to work on the “corporate governance to create the future” with the aim of building highly transparent corporate governance under the guidelines.

Our Mission is to help our customers embrace life more fully by offering comprehensible, cost-competitive and convenient products and services. Under the Mission, we have been working on ensuring transparency in management and strengthening the supervision and effectiveness of our management organization structure as a life insurance company with a strong social and public nature. Through these initiatives, we aim to strengthen and enhance corporate governance, and to achieve a sustainable improvement in our corporate value.

Please see Corporate Governance for a chart of our corporate governance system and details of the organization. 

• Nomination and Dismissal Policy of Officers
  We have established a discretionary Nomination and Compensation Committee to strengthen the independence, objectivity and accountability of the functions of the Board of Directors concerning the nomination, dismissal, and compensation of officers. The Board of Directors enacts the nomination and dismissal policy of officers upon deliberations by the Nomination and Compensation Committee.

• Skills Matrix of Directors
  We disclose the knowledge, experience and abilities of each Director in a skills matrix based on our business and management strategies. We are working to ensure the effectiveness of the Board of Directors.

• Evaluation of the Effectiveness of the Board of Directors
  We have been evaluating the effectiveness of the Board of Directors through a self-evaluation once a year in principle since fiscal 2016 to ensure the effectiveness and suitability of the Board of Directors. The Board of Directors receives a report of the results and deliberates on it. Then it formulates an improvement plan to make its functions more enhanced. We also evaluate all aspects of the governance system, in addition to the Board of Directors, including the Audit and Supervisory Committee, the discretionary Nomination and Compensation Committee, and the meetings for outside officers.
  
  We distributed a questionnaire to all Directors and obtained their answers for the evaluation of the effectiveness of the Board of Directors in fiscal 2022. In addition, the Board of Directors Secretariat individually interviewed all the Directors based on the results of their answers in the questionnaire. The evaluation items on the questionnaire mainly covered the following: an overall evaluation of the Board of Directors, the composition of the Board of Directors, the operation of the Board of Directors, the quality of deliberations by the Board of Directors, communication among officers, information provision and training, engagement with investors and shareholders, Future of the Board of Directors (transition to Monitoring Board), management of the Audit and Supervisory Committee, the discretionary Nomination and Compensation Committee, and the meetings for outside officers.

  As for the overall evaluation of the Board of Directors, while dealing with a wide range of subjects in a limited amount of time, we were able to continuously improve our operations and focus our discussion on important subjects such as the mid-term business plan and sustainability. At the same time, it was point out that the discussions by the Board of Directors should also be conducted from a medium- to long-term perspective. Therefore, we are working to improve the quality and quantity of discussions.

  With regard to the composition of the Board of Directors, there were opinions regarding the revision of the number of Directors, the Independent Outside Directors becoming the majority over the medium term in order to further strengthen supervisory functions and ensure diversity, and the increase the ratio of female Directors.
  In terms of provision of information and training, we held a corporate governance training course with an external lecturer on timely topics in fiscal 2022 as well, and it was a valuable opportunity. Regarding the operation of the meetings for outside officers, we were able to provide an opportunity for Outside Directors to express their opinions on agenda set by Outside Directors themselves. However, it was pointed out that discussions among Outside Directors should become more active, so we will continue to review the operation of the meetings for outside officers. 

• Compensation of Directors
  The compensation of Directors (excluding Directors Who Are Audit and Supervisory Committee Members and Outside Directors) is designed to give a sound incentive to increase our mid- to long-term performance and to enhance our corporate value as well as to further share value with our shareholders. It is comprised of base compensation (fixed), performance-linked compensation and restricted stock compensation.
  We only pay base compensation (fixed) to Directors Who Are Audit and Supervisory Committee Members and Who Are Outside Directors. 
   

  The Board of Directors determines the amount of compensation for individual Directors upon deliberations by the discretionary Nomination and Compensation Committee. The amount is based on a third-party investigation on the compensation level of corporate executive managers in Japan in consideration of the work areas and range of responsibilities of each Director. 

  The ratio of fixed compensation, performance-linked compensation and restricted stock compensation for Directors (excluding Directors Who Are Audit and Supervisory Committee Members and Outside Directors) is roughly 6:1:3 so that it functions as a sound incentive. The amount of performance-linked compensation is determined according to the level of achievement of targets in a single fiscal year under the premise of a standard amount of performance-linked compensation calculated based on the amount of base compensation. We shall use financial indicators (the indicator of the Company's corporate value improvement etc.) and non-financial indicators (the customer satisfaction etc.) set by the Board of Directors.

• Risk Management System
  We recognize that the establishment and development of risk management system are extremely important from the perspective of the soundness and suitability of operations as a life insurance company, and we have enacted internal rules for risk management. We have developed the system for the assessment and improvement of each risk through taking the initiatives on establishing internal organizational structures. 

  Please see the Annual Report 2023 (Japanese version only): (2) Risk Management System on page 35 for details.

• Compliance System
  Lifenet promotes compliance by setting a policy on legal compliance and a basic policy on legal compliance regarding specific measures, and establishing a compliance system.
  Please see the Annual Report 2023 (Japanese version only): (2) Compliance System on page 34 for details.

• Whistleblowing System
  We have introduced a whistleblowing system to secure and increase social trust as a life insurance company through the early detection and rectification of illegal activities and protection of whistleblowers. 
   

  Not only our officers and employees but part-time and temporary workers can utilize the system. We protect anonymity unless we have the consent of the whistleblower. Furthermore, the safety of whistleblowers is ensured so that they are not subjected to disadvantageous handling by the company. 

• Conflict of Interest Management Policy
  We strive to manage conflict of interest transactions so that we do not harm the interests of our customers. We achieve this by our officers and employees complying with this policy. 
  
  Conflict of Interest Management Policy (Japanese version only)