Product Strategy That Supports Total Life Planning

Transcription

1 FALIA Invitational Seminar in Japan Product Development Strategy Course Product Strategy That Supports Total Life Planning September 5 th, 2013 Koichiro Niwa Manager Product Development and Management Unit The Dai-ichi Life Insurance Co., Ltd.

2 I. Transition of Major Products of the Dai-ichi Life

3 1. Transition of Major Products 1.Endowment Insurance - Protection and savings are assured. 2.Endowment with Term Life Insurance - Death protection is increased. 3.Whole Life Insurance - Death protection (also savings) for whole life is assured responding to longevity. 4.Whole Life Insurance with Term Insurance - High amount of death protection for his/her working prime years besides the merits of whole life insurance is assured. 5.Whole Life Insurance with Term Insurance Rider - High amount of death protection with renewal of term is assured by relatively cheaper premium. Plan design flexibility and high-multiplying death protection is obtainable with term insurance rider. It is also possible to select a plan that improves existence security through minimum insurance benefits reduction for whole life insurance. 6.Renewable Insurance with Conversion Option to Whole Life - More flexibility and premium competitiveness are added besides the merits of whole life insurance with term insurance rider. 7.Whole Life Medical Insurance - From death protection for whole life to medical protection for whole life. Risk in life is increased by progressing in longevity. 1

4 1-1. Whole Life with Term Insurance Rider Allows death insurance within a certain insured period to be added on to whole life death insurance, in response to the contract holder s life cycle Insurance period 10 years Insurance period 10 years Insurance period 10 years Death / Disability Protection Term Insurance Rider (Basic Policy) Whole Life Contract Renewal of Term Insurance Rider Renewal of Term Insurance Rider Expiration of Premium Payment Period 2

5 1-3. Whole Life Medical Insurance Guarantees medical insurance for life For living insurance Accidental Hospitalization and Sickness Hospitalization Benefit: Daily hospitalization benefit x Hospitalization days (B1 type, B2 type: The hospitalization benefit is double in case of lifestyle-related diseases) (C1 type, C2 type: The hospitalization benefit is double in case of women s specified diseases) Operation Benefit : [Operation in hospitalization] Daily hospit. benefit x 20 [Operation for outpatient] Daily hospit. benefit x 5 Radiation Treatment Benefit: Daily hospitalization benefit x 10 Bone Marrow Donors Benefit : Daily hospitalization benefit x 20 (A1 type, B1 type, C1 type: Hospitalization lump sum benefit Daily hospitalization benefit x 5) Contract [Main benefits] 1. Accidental Hospitalization Benefit/ Sickness Hospitalization Benefit The hospitalization benefit is paid when the insured is hospitalized more than 1 day. (60 days or 120 days or 240 days per one hospital stay; 1,000 days in aggregation) B1 type, B2 type: The benefit is double in case of lifestyle-related diseases (cancer, cerebrovascular disease, cardiac disease, diabetes, highblood pressure disease) C1 type, C2 type: The benefit is double in case of women s specified diseases (cancer, abnormal labor, uterus and ovary disease, etc.) 2. Operation Benefit The operation benefit is paid when the insured has an operation which is covered by National Health Insurance. 3. Radiation Treatment Benefit The benefit is paid when the insured has a radiation treatment which is covered by the National Health Insurance. 4. Bone Marrow Donors Benefit The benefit is paid when the insured undergoes as a donor bone marrow stem cell or peripheral blood stem cell harvesting. 5. Hospitalization Lump Sum Benefit (A1 type, B1 type, C1 type) The hospitalization lump sum benefit is paid when the insured is hospitalized and is eligible for accidental hospitalization benefit / sickness hospitalization benefit. 4

6 II. Products that Support Total Life Planning

7 2-1. Care Annuity Whole Life Security Insurance Insurance for one s own nursing care Contract Care Annuity (Whole Life Annuity with the guarantee period of 5 years) Liability Reserve Condition requiring care Exemption from premium payment after that Expiration of premium payment The condition requiring care means the condition satisfying one of the following (1) or (2). (1) Support is required when rolling over or walking or problematic actions due to organic dementia (2) The condition requiring care in any two items of bathing, excretion, cleanliness and cosmetic, dressing and undressing. [Major benefits] (1) Care Annuity The first care annuity is paid when the person assured falls under the condition requiring care, that condition continues at least 180 days, and there is no prospect of recovery. The second and subsequent annuities are paid on the same date of the year as the first payment as long as the person assured lives. (2) Death Benefit The liability reserve at the moment of the death is paid when the person assured dies before the start of annuity payment. 6

8 2-2. Child Education Endowment Insurance Insurance for child s education, wedding fund preparations In case of 18-years old maturity Educational benefit Death benefits Maturity proceeds Premium paying period Scholarship annuity Educational benefit Standard insurance benefits 50% 15 years old Death benefits Maturity proceeds Standard insurance benefits 100% 18 years old 0 years old (*) 15 years old 18 years old Up to 15 years old Liability reserves Up to 18 years old Maturity benefits of rider Standard annuity benefits 30% (*) Can be enrolled 140 days before the expected date of delivery. [Main benefits (in the case of maturity at 18 years old)] (1) Educational benefit On the first February 1st after the living insured (child) turns 15, an educational benefit which is 50% of the standard insurance benefits will be payable. (2) Maturity proceeds At the maturity of the insurance period, the maturity proceeds which is 100% of the standard insurance benefits will be payable to the living insured. (3) Premium payment exemption Premium payment will be waived in the case upon the death of the policy holder (parent) or when the policy holder becomes a prescribed invalid or disabled person. (4) Death benefits Upon the death of the insured, the liability reserves for the insured at the time of death will be payable as death benefits. (5) Scholarship annuity (rider) Upon the death of the policy holder (parent) or when the policy holder becomes a prescribed invalid, a scholarship annuity will be payable annually. 7

9 2-3. Individual Annuity Insurance Saving insurance for accumulating funds for old age Liability reserves Accidental death benefits (liability reserves x 1.1) Death benefit Annuity Contract date Premium paying period Date for the start of annuity payments 10-year annuity certain [Structure and Features] Annuity premiums payable in the future are defined in order to apply the assumed interest rates at the time of the contract conclusion over the entire period of insurance. Planning for asset growing for the future is possible. 8

10 2-4. New Type Single Premium Endowment Prepare for the worst and Savings insurance with equivalent death benefits and maturity proceeds Liability reserves Surrender value Death/disability protection Maturity proceeds Contract Insured period 10 years (5 years) [Structure and Features] Single premium type insurance with 5 year or 10 year maturity periods. Product which is more responsive to the market money rates. - Setting for assumed interest rates for new contracts carried out monthly. - Applicable assumed interest rates are based on the average interest rates for government bonds just one month before with additional safety rates. (Interest rates for 10 year government bonds are used for 10 year maturity product while interest rates for 5 year government bonds are used for the 5 year maturity product) - Invested assets are matched with fixed-income securities for the remaining period which is the same as the insurance period. - When the contract is cancelled mid-way, a surrender deductible is set against the operable risks, and risks against interest rate fluctuations are factored in. 9

11 2-5. Nonparticipating, Single Premium Whole Life Insurance (declaration unneeded) Whole life insurance available regardless of state of health Insurance that combines the two functions of prepare for the worst and savings Basic insurance benefits (single premium) Liability reserve (dotted line) Death proceeds (solid line) Contract 1st insurance period 5th year 2nd insurance period 10th year 3rd insurance period [Structure and Features] Premium paid as a single payment Death proceeds curtailed for a set period after entry, eliminating need for declaration/examination Products more responsive to the market money rates -The assumed interest rates applied at the time of new contract entry are set monthly according to the market rate. (Because the assumed interest rates applied at the time of contract entry do not change during the insurance period, the amount for refund upon contract cancelation is determined at the time of contract entry.) 10

12 2-6. Rider to Secure Accidental Death, Injuries, Hospitalization & Medical Operation (1) Name of Rider Name of Benefit Content of Benefit New Comprehensive Medical Care Rider Accidental Hospitalization Benefit The daily hospitalization benefit x hospitalization days is paid in case of hospitalization for more than 1 day due to injury. Payment is made within the maximum limits of the daily hospitalization benefits of 60 / 120 / 240 days per hospitalization and of 1,000 days in aggregation. Hospitalization Lump Sum Benefit Rider Hospitalization 8 Major Lifestyle Disease Rider Sickness Hospitalization Benefit The daily hospitalization benefit x hospitalization days is paid in case of hospitalization for more than 1 day due to sickness. Payment is made within the maximum limits of the daily hospitalization benefits of 60 / 120 / 240 days per hospitalization and of 1,000 days in aggregation. Operation Benefit The benefit is paid when the insured has an operation which is covered by National Health Insurance due to sickness or injury. [Operation while in hospitalization]: daily hospitalization benefit x 20, [Operation for outpatient]: daily hospitalization benefit x 5 Radiation Treatment Benefit The benefit, daily hospitalization benefit x 10, is paid when the insured has a radiation treatment which is covered by National Health Insurance due to sickness or injury. Bone Marrow Donors Benefit The benefit, daily hospitalization benefit x 20, is paid when the insured undergoes as a donor of bone marrow stem cell or peripheral blood stem cell harvesting. Hospitalization Lump Sum Benefit The hospitalization lump sum benefit is paid when the insured is hospitalized and is eligible for accidental hospitalization benefit / sickness hospitalization benefit. Hospitalization Benefit The daily hospitalization benefit x hospitalization day is paid when the insured is hospitalized for more than 1 consecutive day for cancer, cardiac disease, cerebrovascular disease, diabetes, high-blood pressure disease, liver disease, pancreatic disease, or kidney disease. Hospitalization Women s Specified Disease Rider Advanced Medical Treatment Rider Hospitalization Benefit Advanced Medical Treatment Benefit Advanced Medical Treatment Single Benefit Payment is made within the maximum limits of the daily hospitalization benefit of 60 / 120 / 240 days per hospitalization and of 1,000 days in aggregation. The daily hospitalization benefit x hospitalization days is paid in case of hospitalization for more than 1 consecutive day due to women s specified diseases (cancer, abnormal labor, uterus, breast and ovary disease, etc.). Payment is made within the maximum limits of the daily hospitalization benefit of 60 / 120 / 240 days per hospitalization and of 1,000 days in aggregation. Payment equivalent to the cost of advanced care under the public medical insurance system. Overall payment limit: 20 million yen 20,000 yen will be paid at the time of payment of advanced medical treatment benefits. 11

13 2-6. Rider to Secure Accidental Death, Injuries, Hospitalization & Medical Operation (2) Name of Rider Name of Benefit Content of Benefit Injury Rider Accident Benefit The accident benefit is paid when the insured dies due to the accident within 180 days from the accident. Disability Benefit From 10 to 100 % of the accident benefit is paid according to the condition of disability when the insured becomes disabled due to an accident within 180 days from the day of accident. Specific Damage Rider Specific Damage Benefit The standard specific damage benefit is paid when the insured has treatment for a broken or dislocated bone and a tendon rupture due to an accident within 180 days. The aggregate times of payment are limited to 10. Women's Specific Treatment Rider Women's Specific Operation Benefit 100%, 50% and 25% of the rider standard benefit amount is paid respectively when the person assured has removal of the breast due to breast cancer, a hysterectomy or an oophorectomy. Breast Reconstruction Benefit 20% of the rider standard benefit amount is paid when the person assured has a breast reconstruction operation after the removal of the breast due to breast cancer. 12

14 2-7. Rider to Cover Various Risk While Living (1) Name of Rider Name of Benefit Content of Benefit Specific Disease Security Term Insurance Rider *One of these benefits will be paid. Security for Diagnosis of Designated/Specified Diseases Death Coverage Rider *One of these benefits will be paid. Disability Security Rider *One of these benefits will be paid. Specific Disease Insurance Benefit The specific disease insurance benefit is paid when the person assured has any of the 3 major diseases (cancer, acute cardiac infarction, and stroke). Disability Insurance Benefit The rider insurance benefit is paid when the person assured becomes a prescribed invalid. Death Insurance Benefit The rider insurance benefit is paid when the person assured dies. Designated Diseases Benefit The rider insurance benefit is paid when there has been a definite diagnosis of in situ carcinoma, and the person assured is hospitalized for more than 1 day due to acute cardiac infarction or stroke. Specific Disease Insurance Benefit The specific disease insurance benefit is paid when the person assured has any of the 3 major diseases (cancer, acute cardiac infarction, and stroke). Disability Insurance Benefit The rider insurance benefit is paid when the person assured becomes a prescribed invalid. Death Insurance Benefit The rider insurance benefit is paid when the person assured dies. Disability Insurance Benefit The rider insurance benefit is paid when the person assured becomes disabled (paralysis of an arm or a leg, equipped with a pacemaker, dialysis treatment, artificial urinary bladder, artificial anus, etc.). Death Insurance Benefit The rider insurance benefit is paid when the person assured dies. Nursing Care Rider Nursing Care Benefit The benefit is paid when the person assured falls under the condition requiring care due to sickness and injury, such condition continues more than 180 days, and there is no prospect of recovery. 13

15 2-7. Rider to Cover Various Risk While Living (2) Name of Rider Name of Benefit Content of Benefit Specific Condition Income Security Rider *One of these Specific Disease Annuity The rider annuity is paid yearly when the person assured has any of the 3 major diseases (cancer, acute cardiac infarction, and stroke) and if he/she survives. The annuity payment period is selected from whole life, 5 years, 10 years and 15 years at the time of purchase of this rider. annuities will be paid. Disability Annuity The rider annuity is paid when the person assured becomes disabled (paralysis of an arm or a leg, equipped with a pacemaker, dialysis treatment, artificial urinary bladder, artificial anus, etc.) and if he/she survives. Nursing Care Annuity The rider annuity is paid when the person assured falls under the condition requiring care due to sickness and injury, such condition continues more than 180 days, and there is no prospect of recovery, and if he/she survives. Death Benefit The death benefit of the same amount as the rider annuity amount is paid when the person assured dies without the payment of the rider annuity. Living Needs Rider Specific Condition Insurance Benefit The amount insured of the main policy designated by the person assured, after subtracting the relevant interest and premiums for 6 months, is paid when he or she is judged to live less than 6 months. 14

16 2-8. Rider to Reduce Premium Payment Name of Rider Content of Benefit Premium Payment Exemption Rider (*) The subsequent premium payment of the whole contract is waived when the person assured by the master contract has one of the 3 major diseases (cancer, acute cardiac infarction, and cerebral embolism), is physically disabled, or needs care. Does not apply to breast cancer within 90 days from the start of the liability period, in situ carcinoma, and skin cancer other than malignant melanoma. (*) Sale of Premium Payment Exemption Rider was launched in 1999 current added rate 98% Best-selling product that matched the increasing sense of burden caused by a decrease in household income 15

17 III. Direction of the Product Development Strategy Going Forward

18 3.Product Strategy that Supports Total Life Planning (1) From Death Insurance Company to a Life Insurance Company As the death coverage market scales down, we cannot grow business by offering death security to the core policy purchasers (people in their 20s 40s) Development of products which can be offered to the existence security market including health protection and nursing care insurance has become indispensable The death security market with over JPY1,100 trillion of insurance in force is still the main market; however, the focus should be shifted over to existence security in line with social trends of deflation and aging population In the existence security market, close combination of products which fit the characteristics of the target market and sales channels which can grip the market will be the key 17

19 3.Product Strategy that Supports Total Life Planning (2) Product Design without Assuming Steady Growth in Economy Traditionally, products including renewal of special riders, stepped payment system and long-term fixation of the assumed rate of return were developed and designed anticipating steady growth in economy, assuming customers income should increase every year, stock prices should rise and interest rates should be maintained at the high level. As the deflationary economy persists and the household income decreases, demand for products with unchanging premiums is increasing. Development of products assuming continuing deflation in economy is sought after. 18