FISNet Company Visiting - Mitsui Sumitomo Insurance

                                             

On March 15^th 2016, Mr. Fusato Suzuki along with FISNet members visited Mitsui Sumitomo Insurance. Mr. Morikiyoshi Yuki and Mr. Kageyama Kenichi were the representatives of the company, and FISNet members were treated with warm welcome.

           Each year, around 30 flights of rocket have been launched to space in order to conduct scientific experiments that will lead humanity to be greater civilisation. Within the 30 launches, about 1 – 2 launches are unsuccessful. That is about a 5% failure rate. The question is: “Who is there to insure those failures?” This is where the insurance company comes into play.

There are two types of insurance: life insurance and non-life insurance. In Japan, there are fifty two non-life insurance companies licensed by the Japan Financial Service Agency. However, only three major groups hold the majority share of the market. These three groups are: MS&AD Group, Tokio Marine Group and SJNK Group. Mitsui Sumitomo Insurance belongs to MS&AD Group, which deals with non-life insurance, such as car insurance, marine and fire.

With the world changing rapidly, these insurance companies are trying to find the new risks in order to insure those new insecurities. The dangers do not come from only car accidents, marine-related accidents, or fires anymore. As the world evolves, the risks involved also evolves. Coming back to the rocket launching scenario, this is why space agencies are willing to fork out $3 billion just for launching insurance.

             As Japan is a developed country with high economic power, Japan comes in fifth place in The Global Share of General Insurance Market, behind the United States, China, Germany and the United Kingdom. MS&AD Insurance group is the seventh biggest insurance group in the world, with  the top place taken by Berkshire Hathaway. The company is always looking for opportunities to expand its market share. However, with the population of Japan declining, Mitsui Sumitomo Insurance is shifting its focus toward other countries in Asia as their main target.

MS&AD has around 93,000 employees worldwide in 42 countries, with 8,200 employees being overseas staff. For global expansion strategy, MS&AD Holdings uses “tripolar system” where there are three sub holdings below the main holdings: Asian Holdings, European Holdings and American Holdings. With Asia as a main target of expansion, Asian Holdings companies are ranked top ten among major South East Asia countries, such as Malaysia, Philippines, Singapore, Thailand, Indonesia and Hong Kong. MS&AD group is also aware of dramatically growing Chinese and Indian markets. The company has strong networks in China, and more than 90 offices in India.

While many companies are trying to minimize and avoid risks, non-life insurance company such as Mitsui Sumitomo Insurance is constantly searching for new possible risks in order to insure the security. In the past, the insurance covered damages from marine and fire. With the world evolving rapidly nowadays, new risks appear, and new challenges occur for Mitsui Sumitomo Insurance to keep providing world class securities to all of us. 

FISNet members would like to thank Mr. Morikiyoshi Yuki and Mr. Kageyama Kenichi for making this company visit such an wonderful and educational experience. We would also like to give special thanks to Mr. Fusato Suzuki for arranging the company visit, and making this happen. We are looking forward to the next company visits. Thank you!!!

By Pasith Tangdhanakanond (Leo)
TUFSA Media Team Coordinator