Specifically, we will review business practices that can be an obstacle to appropriate market competition, such as strategic equity holdings and overly accommodative behaviors, and will also update employee evaluation criteria to create an environment where we will be able to engage squarely with our customers. In addition, to prevent a recurrence, we will establish an appropriate insurance underwriting management system based on thoughtful dialogue with customers and agents.
Changing the mindset of each and every executive and employee is also important to create an environment of appropriate competition and management system for insurance underwriting. We will transform our corporate culture, emphasizing a customer-centric focus and compliance, by promoting activities that encourage each individual to be mindful of not only compliance with laws and regulations but doing the right thing.
In addition to this, in the final fiscal year of the Medium-term Business Plan (2022-2025), we aim to make further progress toward realizing our vision of supporting the future of our customers, local communities and society at large through CSV x DX*1, by ensuring that our customers and members of local communities and society truly feel the benefits of the CSV x DX value chain.
- *1Portmanteau phrase combining CSV (creating shared value) and DX (acronym for digital transformation).
We sell telematics auto insurance (hereafter telematics insurance), the AD product which best epitomizes CSV x DX, under the concept of 'SAFE TOWN DRIVE' . This product not only supports safe driving by the customer but also enables the visualization of risk points by analyzing customer driving and accident data. By sharing this data with regional governments and others, AD is working with our customers, local communities and society to create neighborhoods that are safe and secure.
I will share an example of our initiatives to support the reconstruction of the region impacted by the Noto Peninsula Earthquake of 2024.
Leveraging driving data from telematics insurance, AD created a new Road Surface Condition Monitoring System (Disaster reconstruction support plan) to support the rebuilding of roads. This system makes it possible to quickly understand damage to roads from natural disasters and can be used in formulating repair plans to support early recovery from disasters. Going forward, AD will support rapid recovery initiatives in regions impacted by large-scale natural disasters.
Separate from telematics insurance, AD is focused on providing a menu of support services to address issues in Japan and overseas, and the development of new services.
In response to the rising frequency and intensity of natural disasters in Japan in recent years, AD provides a real-time service to project damage to buildings in individual regions in the event of typhoons, torrential rains or earthquakes (hereafter cmap). Many corporates and regional governments are using cmap to enable swift evacuation and to prepare for potential damage. AD has also initiated joint development of a bridge structure inspection support tool with the city of Susono as a way of addressing the aging of infrastructure. Using inspection images, the system leverages AI to identify damage to bridge structures, quantify the extent of damage and assess the soundness of structures.
Overseas, we established Aioi R&D Lab-Oxford in the autumn of 2022 jointly with Mind Foundry, an Oxford University AI venture in which we have invested. This research institute has begun developing an app that will make it possible to grasp the business risk resulting from the impact of corporate activity on the environment and biodiversity. This is a part of its objective to solve global social challenges by contributing to addressing the issue of maintaining and improving the environment and biodiversity.
The catchphrase for CSV x DX is ‘Together create a peace of mind not yet known’. We continue to accelerate our efforts to address the issues faced by local communities and society at large to increase the number of people that viscerally experience a peace of mind not yet known.
Going forward, AD will continue to embrace the spirit of CSV x DX. Our executives and employees are committed to working together with a customer-centric focus to become a company that is trusted by its customers, local communities and society at large.
We humbly ask for your continued support.
Thank you.