Daiichi Life Is Lowering Risks and Focusing Investment in Areas With Returns Above Capital Cost

Following its demutualization and IPO in 2010, Daiichi Life Group has transformed from one of Japan’s big four traditional life insurers to a multinational holding company with a multibrand, multichannel strategy. In Japan, Daiichi Life Insurance Co. is still the largest entity, accounting for more than half of total assets, premiums, and profits. Its main sales channel is tied agents who are long-term employees of the company and give customized consultations to potential customers at their workplaces or homes, with various products tailored to different age groups and their savings and protection needs. The second-largest domestic entity is Daiichi Frontier Life, established in 2006 when Japan was deregulating bancassurance and having steadily grown since then. It provides in-depth on-site training to bank tellers who mainly sell savings products, particularly foreign-currency-linked annuities. The third and smallest domestic entity is Daiichi Neo Life, which focuses on selling via the internet by providing products that are relatively easy to understand and easy for the insurer to process. Neo is small but growing rapidly with a skew toward younger customers.