Japan’s First Insurance Dedicated to Encouraging People Requiring Care to Improve their Condition: Asu e no Chikara(PDF/59KB)

August 23, 2017 Sompo Holdings, Inc. Sompo Care Message Inc. Sompo Care Next Inc.

Aiaru Syougakutankihoken Corporation

The Sompo Holdings Group and Aiaru Syougakutankihoken Corporation (President and Representative Director: Katsuyuki Ando, hereinafter "Aiaru") will roll out Asu e no Chikara, the first insurance in Japan dedicated to encouraging people requiring care to improve their condition on September 1, 2017. The companies are jointly conducting research related to contributions to preventative care from insurance products. Aiaru developed Asu e no Chikara and will successively offer it to the residents and users of Sompo Care Message Inc. (President and Representative Director: Ken Endo, hereinafter "Sompo Care Message") and Sompo Care Next Inc. (President and Representative Director: Ken Endo, hereinafter "Sompo Care Next").

1. Background and history

   • As Japan's population ages, the number of people certified as requiring assistance or care is increasing, along with the amount of insurance benefits being paid under the public long-term care insurance system.

   • Meanwhile, steps to reduce the degree of care or assistance that is required and foster independence for the elderly to live their lives their own way are becoming increasingly important. Promoting such steps helps reduce the elderly's out-of-pocket expenses for care services as well as the government's care benefit payments.

   • Against this backdrop, the Sompo Holdings Group and Aiaru agreed to jointly conduct research on how insurance products can contribute to preventative care. Through this research, Aiaru developed Asu e no Chikara insurance. By encouraging people requiring assistance or care to improve their condition, the product can help reduce the required level of assistance or care and promote independence. This can help to curb care benefit payments made by the government.

2. Features of Asu e no Chikara, insurance encouraging improvement in the status of people requiring care * For product details, please see the attachment.

3. Payment of a reward for improvement in required level of assistance or care

   • A "care status improvement benefit" of a predetermined amount is paid to people certified as requiring assistance or care under Japan's public long-term care insurance system

     when there is a reduction in their required level of assistance or care during the insurance coverage period as a result of their own efforts or otherwise.

4. Enrollment possible for people requiring level 1 assistance to level 5 care

• People certified as requiring assistance or care (from level 1 assistance to level 5 care) under Japan's public long-term care insurance system are eligible for enrollment in this insurance.

5. Future development

• Starting on September 1, Aiaru will gradually rollout Asu e no Chikara insurance promoting improvements in the level of care that is required to residents and users of Sompo Care Message and Sompo Care Next.

• After that, the two companies will consider expanding the scope of sales to residents and users outside of the Sompo Holdings Group, taking into account sales trends.

• The Sompo Holdings Group will use this product to test the utilization of insurance itself to contribute to reducing the degree of care required and apply its findings in future business strategy proposals.

■Overview of Aiaru Syougakutankihoken Corporation

Company name	Aiaru Syougakutankihoken Corporation
Head office	Aska V Nihonbashi Building 2F, Nihonbashi Odenmacho 1-3, Chuo-Ku, Tokyo
President and representative director	Katsuyuki Ando
Business activities	Small-amount, short-term insurance
Establishment	April 25, 1983
Capital	¥99.5 million

Attachment Overview of Asu e no Chikara, insurance encouraging care status improvement
1. Insurance structure

   People certified as requiring assistance or care under Japan's public long-term care insurance system are paid a predetermined care status improvement benefit when their required level of assistance or care improves during the insurance coverage period as a result of their own efforts or otherwise.

2. Policy period 1 year
3. Eligibility (the insured)

   People certified as requiring assistance or care under Japan's public long-term care insurance system.

4. Policy details

   Type of insurance payout	Causes for insurance payment	Beneficiary
   Care status improvement insurance payment	When the insured applies for renewal or change in status of their certified level of required assistance or care under Japan's public long-term care insurance system and improvement* in their required assistance/care level is recognized on or after the 90th day from the effective date of the initial insurance contract or thereafter during the policy period.	The insured

   *Recognition of improvement includes no longer being certified as requiring assistance or care (independence).

5. Sales pattern

   A plan	B plan	C plan
   Insurance amount	¥25,000	¥50,000	¥100,000
   Insurance premiums	¥5,000	¥10,000	¥20,000

   * The same premium regardless of age and required level of assistance or care.

6. Insurance underwriter

Aiaru Syougakutankihoken Corporation