【ノート】
・ Please turn to page 2.
・ Since I took office in June, a number of stakeholders, including investors, have asked me why we are not merging our two core non-life insurance companies.
・ Let me explain my thoughts.
・ Merging them is a major possibility if you consider restructuring, emphasizing only cost cutting, based on the understanding that the domestic market will shrink due to the falling birth rate and the aging and shrinking population. However, I am afraid this way of thinking could lead to a balanced contraction.
・ It is true that the Japanese market will not likely grow as fast as emerging countries, including other Asian countries, but the market has a number of customers with a wide range of risks.
・ Innumerable risks are subject to be insured, and new risks emerge as new technologies and markets are created continually. As a market grows mature, customers’ risks and needs continue to diversify. Barriers among industries and barriers separating nations are lowered.
・ This situation gives us a great opportunity to play a large role in providing insurance and services to meet diversifying needs.
・ If we view the business environment this way, having insurance companies based on different business concepts - an insurance company which is providing comprehensive global services and an insurance company which develops into a region based business with close relationship with customers - is the best way to meet customer needs from a long-term perspective. This perception led us to choose reorganization by function.