1. Analyze and enhance customer
experience using mobile technologies
and data analysis
Tsukasa Makino
Manager IT Planning Department & Corporate Planning Department,
Tokio Marine & Nichido Fire Insurance Co., Ltd.
Visiting Professor at Tsukuba and Kyushu University 1

2. First of all..
• Our deepest condolences and sympathies for
those lost or suffered in the Great East Japan
Earthquake
• Our sincere appreciation for the best wishes,
donations, rescue operations and assistances
from all over the world
©Tokio Marine & Nichido

3. Overview of the Great East Japan Earthquake
Death: 16,103
Missing : 4,746
Completely Destroyed houses: 110,826
Half Destroyed houses: 134,379
Partly Destroyed houses: 134,379
Epicenter
As of 2011-07-28 15:00
Fukushima Dai-ichi
Nuclear Plants(30km)
225km
Tokyo
Kyoto
©Tokio Marine & Nichido 3

4. Large earthquake insurance payments in the past
Area Date Claims Paid (million yen)
East Japan 2011/3/11 758,209
1 Hanshin Awaji 1995/1/17 78,300
2 Hiroshima-Ehime 2001/3/24 16,900
3 Fukuoka 2005/3/20 16,900
4 Niigata 2004/10/23 14,900
5 Niigata 2007/7/16 8,200
6 Fukuoka 2005/4/20 6,400
7 Hokkaido(Tokachi) 2003/9/26 6,000
8 Iwate-Miyagi 2008/6/14 5,400
9 Shizuoka 2009/8/11 4,500
10 Iwate-Miyagi 2008/7/24 3,900
Source: Japan Earthquake Re-iInsurance
©Tokio Marine & Nichido

5. Tokio Marine & Nichido’s support for the disaster area
• 8,800 in accumulation TMNF employees were assigned to
Tohoku area as support staff from the branches across Japan.
• Additional 1,800 terminals were deployed for support staff.
• 190 terminals were delivered to the agencies who lost their
terminals in the earthquake and tsunami.
• Three “Mobile Office” equipped with agency terminals and
wireless modems to help agencies continue their business.
• Vehicles, gasoline, oil and countless materials were sent.
©Tokio Marine & Nichido

6. Technologies and BPR helped us a lot
Thin Client
Mobile
Video Conference
Standardization
Paperless
Cashless
©Tokio Marine & Nichido 6

7. Appreciation from customers and agencies
• We were motivated by receiving a lot of “thank you” voices and
mails from our customers and agencies for our quick actions
and warm-hearted help.
• We leaned that even if the customer’s policy doesn’t cover the
loss and we couldn’t pay claims, customers will appreciate if
we hear their voice sincerely with sympathy.
©Tokio Marine & Nichido

8. What we could have done differently
Less paper!
More simple and flexible system operation
More telework
Mobile devices
©Tokio Marine & Nichido 8

9. Prevention
IT for Disaster Support
Recovery
9

10. Safety system for “Shinkansen “(Bullet Train)
The railroads suffered severe damages.
All trains stopped automatically before the seismic wave
reached to them.
No trains were damaged or derailed, and no injuries.
II I I I I II I II I I I I II
©Tokio Marine & Nichido 10

11. Earthquake Early Warning System
Give the warning automatically several seconds before the
seismic wave comes to site.
Earthquake
Warning!
The
Meteorological
Agency
Earthquake
Warning!
©Tokio Marine & Nichido 11

12. Road recovery map
Gather driving record data from car navigation systems
and plot on the map. This shows which road has recovered.
©Tokio Marine & Nichido

13. Mobile Technologies:
Providing a New Customer Experience
13

14. About Tokio Marine & Nichido
Established in 1879 (131 years old)
1) Profile
Total Assets：US$87 Billion
Net Premium Written：US$16 Billion
Employees: Domestic:17,000,
Overseas:16,000 （As of Aug.2010 1$=90Yen)
• Automobile • Kid’s
2) Product Lines • Superinsurance（Non-life+Life） • Saving Type
• Homeowners • 401k
• Injury, Sickness • Mutual Fund
• Travel, Leisure • Life
3) Distribution Tokio Marine & Agencies（46,932)
System Nichido
Branch Branch Independent Car Post office
Bank
HQ (125) (435) Dealer
Etc..
©Tokio Marine & Nichido 14

15. Today’s Topics
• Changes in environment
• How to be innovative
• Insurance distributed by mobile phone
Sales Analysis
New products
• Technology Background and the Future
©Tokio Marine & Nichido 16

16. Changes in competition environment
Competition within insurance
industry took place in the closed
arena, where size was the
dominant power.
Competition with
new entrants
might take quite
different shape
New entrants Traditional insurance
companies
©Tokio Marine & Nichido 17

17. Mobile Phone Technology & Service
using mobile phones, you can do almost anything
Golf
e-Pass Train Timetable Exercise Fishing
e-Wallet e-Ticket Swing
Credit card Analysis
Analysis game
Digital
TV
Face
Resemblance
Check Sports
Face Travel Golf &Leisure
Fingerprint
Recognition. Insurance Insurance Insurance
Recognition.
Earthquake
early warning
QR code
Car Navigation Reader Giga-pixel Karaoke with Active Poster
Location aware
Camera skill rating Reader
coupon
©Tokio Marine & Nichido 18

18. People carry mobile phones anytime, anywhere
(Mobile phone as a sensor)
Commuter
train
Office
Home
Station Restaurant
SALE
Supermarket Jogging Shopping
©Tokio Marine & Nichido 19

19. How to be innovative
Unleash your mind
21

20. Eyeglass: What functions would you like to implement?
（Example）
）
Train pass,
Electronic Money Ear pick
Eye drops
Auto sunglass Mobile Digital camera/
Auto translator phone Movie
（Voice or Caption)
Pulse, Temperature, Movie/music
Blood Pleasure player, TV
monitor
Iris identification
News, Stock price
Timetable
Auto focus
Smiley GPS
e-Mai reader
navigation
Forget the Technical restrictions, Common sense!, and Insurance
©Tokio Marine & Nichido 22

21. Eyeglass– What functions would you like to implement?
（Example）
）
Train pass,
Electronic Money Ear pick
Eye drops
Auto sunglass Mobile Digital camera/
Auto translator phone Movie
（Voice or Caption)
Pulse, Temperature, Movie/music
Blood Pressure player, TV
monitor
Iris identification
；
News, Stock price
Timetable
Auto focus
Smiley GPS
e-Mail reader
navigation
©Tokio Marine & Nichido 23

22. " Killer Ideas" not “Idea Killers”
•Good at making ideas
•Doesn’t like detailed work.
Creator
(Innovation)
• Good at communication.
Advancer • Spreads good ideas
Refiner (Communication) within company and
(Analysis) makes consensus.
• Good at analytical thinking.
• Finds a lot of errors and • Good at carrying
omissions within ideas. Executor out the actual work
(Materialize)
Creator Advancer Refiner Executor
From Keynote Speech, ISO tech 2005 Ideas by Mr. Allen Fahden, Innovation Network
Refiner Executor
©Tokio Marine & Nichido 24

23. Insurance distributed by mobile phone
(One Time Insurance)
25

24. docomo “One Time Insurance”
On market since April, 2010
Short term, affordable and easy-to-buy injury
insurance distributed by mobile phones
Point １
Available whenever and wherever, just for the days you need insurance
Point ２
From application to payment, all you need is your mobile phone
Point ３
Automatic suggestion, when and where you are in need of insurance
©Tokio Marine & Nichido
6

25. Comprehensive business alliance agreement
Provide innovative and competitive Provide innovative services
“High Quality Services” and chosen throughout alliance with business
by customers. partners, using the advantages of
mobile phone technology.
17 million customers 55 million customers
Provide insurance services which provide Provide mobile phones which support
"relief and safety“ to the daily life daily activity as an infrastructure
Fusion of assets and know-how
Make our society
more confortable and convenient
©Tokio Marine & Nichido 27

26. Products and conditions
Product Coverage（Economy Type) Premiums
・Death & Residual disability ¥3.25m
・Hospital expense ¥4,500
Sports and ¥300
・Liability ¥20m
Leisure ・Rescuer's Expenses ¥0
(Two days One Night）
・Baggage ¥0.1m
・Casualty ¥2m
・ Liability ¥30m ¥300
Golf ・ Golf Clubs ¥0.1m (Two days One Night）
・Hole in One ¥0.3
・ Death & Residual Disability ¥3.25m
¥300
・Hospital expense ¥4,500
Domestic Travel ・ Liability ¥20m
(Two days One Night）
・ Baggage ¥0.1m
・ Loss of Life from Injury ¥0
・ Residual disability from injury ¥0
・ Medical & Rescue Expenses ¥5m ¥980(One day～）
Overseas Travel
・ Loss of Life from illness ¥0
・ Liability ¥10
・ Baggage ¥0.1m
©Tokio Marine & Nichido

27. Overseas travel insurance
Travel
Guide
for illustrative purposes only
©Tokio Marine & Nichido 29

28. Ski insurance
30
for illustrative purposes only
©Tokio Marine & Nichido

29. Products and conditions
Product Coverage（Economy Type) Premiums
・Death & Residual disability ¥3.25m
・Hospital expense ¥4,500
Sports and ¥300
・Liability ¥20m
Leisure ・Rescuer's Expenses ¥0
(Two days One Night）
・Baggage ¥0.1m
・Casualty ¥2m
・ Liability ¥30m ¥300
Golf ・ Golf Clubs ¥0.1m (Two days One Night）
・Hole in One ¥0.3m
・ Death & Residual Disability ¥3.25m
¥300
・Hospital expense ¥4,500
Domestic Travel ・ Liability ¥20m
(Two days One Night）
・ Baggage ¥0.1m
・ Loss of Life from Injury ¥0
・ Residual disability from injury ¥0
・ Medical & Rescue Expenses ¥5m ¥980(One day～）
Overseas Travel
・ Loss of Life from illness ¥0
・ Liability ¥10
・ Baggage ¥0.1m
©Tokio Marine & Nichido

30. Golf Insurance (Hole in one coverage)
Congratulations!
In Japan, if you made a “Hole-in-One”, you have to host a party to celebrate your
accomplishment and give out commemorative gifts at YOUR OWN EXPENSE! 32
($3,000～$5,000）
©Tokio Marine & Nichido

31. Application Process
Example: Golf Insurance All you have to input is these three items!
（PIN, date of birth and playing date）
）
Select Enter Confirm Input Declaration Confirm End of
HOME Playing date,
Product PIN Personal Application Process
Info Select Type
©Tokio Marine & Nichido 33

32. “Auto GPS” Function (Position-aware active recommendation)
Enjoy Skiing?
Ski insurance
covers injury, You’ve arrived
indemnity, at Narita Airport.
damage or theft Would you like
of your gear me to arrange a
from Y300 a day travel
insurance?
Good day! Golf insurance
Please beware is available
of heat attack. from Y300 a
Insurance for day!
protecting your
day on the beach
from ¥300
©Tokio Marine & Nichido 34

33. How it works
To make sure the user is at the target location,
mobile phone waits about 10 minutes before it displays
the recommendation
©Tokio Marine & Nichido 35

34. How it works
Mobile phone monitors the owner’s activities for
one month and determines where to recommend
insurance to its owner
©Tokio Marine & Nichido 36

35. Issues solved by mobile devices: micro & mobile insurance
Transaction
Time stamp
Location
Identification of insured
Authentication
Payment
for Sporadic, Simple and Short term insurance
©Tokio Marine & Nichido 37i

36. Sales Analysis
38

37. Sales Volume
Started selling at Vacation 3.11
Promotion Earthquake
the end of April Season
©Tokio Marine & Nichido 39

38. Peak time of application: Golf Insurance
Early Morning of the playing day
Late evening of the previous day
©Tokio Marine & Nichido 44

39. Tweets about One-time Insurance
Nice idea!
You can buy insurance 24/7. It’s innovative!
Sounds fairly convenient. Anytime, anywhere concept
Looks convenient. Hope the plans are easy to understand
It’s nice to synchronize geographical position and insurance service.
This is good. Clear scope and easy operation.
Wow! Looks handy!! Amazing that an old traditional insurance
company launches such an innovative product!
Looks nice for a short trip.
Hole-in-one expense is covered by Golf insurance. If you feel lucky
today, consider it! ©Tokio Marine & Nichido 45

40. What we get from “One Time Insurance”
• Explored new needs for existing insurance
products.
• Explored new insurance sales opportunity.
• Got customers’ insurance purchase behavior
pattern data.
• Established “Cool” and “Advanced” image for
both NTT docomo and Tokio Marine & Nichido.
©Tokio Marine & Nichido

41. New Products
47

42. On the market from July 21, 2011
Medical Insurance
• Exclusive for NTT docomo “Premier Club” members.
• Can be purchased via mobile phones.
©Tokio Marine & Nichido 48

43. Medical Insurance: Plan and Premium
Basic Three Major Lady’s
Disease
Expense for More coverage for More coverage for
injury, sickness cancer, apoplexy, Lady’s specific diseases
acute M
Hospitalization ¥5,000 ¥5,000 ¥10,000
Lady’s
(per day, max 60 days) Others¥5,000
Operation ¥50,000 ¥50,000 ¥50,000
(according to the type of ¥100,000 ¥100,000 ¥100,000 ¥200,000
operation)
¥200,000 ¥200,000
Advanced Medical - ¥3,050,000 ¥3,050,000
lump-sum for serious - ¥1,000,000
disease
Lady’s plastic - ¥100,000
surgery(according to ¥200,000
the type of operation)
Premium ¥820～ ¥1,120～ ¥1,170～
(monthly、starting from)
©Tokio Marine & Nichido 49

44. On the market from July 21, 2011
Medical Insurance
• Grant 150 “docomo point※” a month (maximum) according
to the daily workout and diet.
※Can be used to buy goods, repair services etc., (100point=¥100)
Walk Jog Dietary Note
(5points/day) (5points/day) (1point/day)
Walk more than Jog more than 30 Record daily diet
10,000 steps minutes more than two
times a day
©Tokio Marine & Nichido 50

45. On the market from Oct, 2011
One day auto insurance
• For those who don’t own a car and drive seldom by
borrowing his/her friend’s or parent’s car.
• Can be purchased via mobile phones.
• Grant maximum 20% discount for those who
switched to annual policy.
Plan Basic Automobile coverage
• ¥1000/day (incl. automobile physical damage)
• Premium (indemnity, driver/passenger injury)
¥500/day ¥500/day ¥1,000/day
• Liability (bodily injury Unlimited Unlimited
and property)
Driver/Passenger ¥10 million ¥10 million
injury (lump-sum¥100,000) (lump-sum¥100,000)
Liability for borrowed - ¥3 million
car damage (¥50.000 deductible)
©Tokio Marine & Nichido 51

46. One day auto insurance background
Market
Young generation who has driver’s license and doesn’t own a car
(16million)
Drive parents’ car frequently (and Drive parent’s or friend’s car
covered by parents’ auto insurance) once a month in average
(9million) (7million)
Have an intention to own a
car within a year(0.7million)
Objectives
• Cultivate auto insurance market in younger generation
• Reduce the accident caused by non-insured cars.
• Provide more opportunity to drive cars to younger generation
©Tokio Marine & Nichido
52

47. Our Goal
Support our customers’ daily life
using mobile technologies
©Tokio Marine & Nichido 53

48. Technology Background
and
the Future
54

49. Japanese national project “Information Grand Voyage”
Initiated by METI (Ministry of Economy, Trade and Industry)
Websites Pictures, Location Purchase
Movies, history
Music
Info-
Web Non-Web
Plosion
Blogs, SNS Databases Audiovisual Healthcare
:::::::::::::::::::::
:::::::::::::::::::::
:::::::::::::::::::::
:::::::::::
Next generation search & analysis engine
Innovation & new value creation
©Tokio Marine & Nichido 55

50. Sensor Network
Mobile phones
Road sensors Field sensors as sensors
Automobile sensors
Body sensors
SNS as sensors
©Tokio Marine & Nichido

51. More detailed data may change auto insurance rating
Age
Ordinary Vehicle type
insurance Claims
Record
Age Mileage
Gender Area
Risk Vehicle type
Violation
segmented record ABS/Airbag
Insurance
Purpose of Low
vehicle emission
Activity based Accurate Hour/day
insurance Mileage Acceleration
(Pay as you Drive) Speed Deceleration
©Tokio Marine & Nichido 57

52. More detailed data may enable
fast, fair and objective claims settlement
Ordinary
investigation
On-site investigation ----------------------------------
----------------------------------
after the accident ----------------------------------
-----------------------
Drive
recorders
Engine rev Brakes
Real-time recording by
camera and black-box Speed Airbag
Gravity Seat belt
©Tokio Marine & Nichido 58

53. More detailed data may change life insurance rating
Ordinary Age
insurance Gender
Age
Gender
Risk Fitness
segmented
Insurance Smoking
Habit
Heart rate
Activity based Miles run or
insurance Blood walked
pressure
(Pay as you live)
Weight
Blood-sugar
level
©Tokio Marine & Nichido 59

54. We have been dealing with very limited information
Marketing
What the
customer wants/
How is the thinks/ feels
customer’s health
condition
Feedback Market
form Research How the accident
happened
Karte
Claims
Claims
Underwriting form
/Rating
Application Structured Data
How the Form
customer
drives
Filter & Convert
Real Information
©Tokio Marine & Nichido 60

55. We have to deal with real and huge information to create value
Marketing
What the
customer wants/
How is the thinks/ feels
customer’s health
condition
Blogs Facebook
How the accident
YouTube Mixi
Heart rate Miles run
happened
Amazon Twitter
or walked
Blood
pressure Weight
Underwriting Engine Brakes
/Rating Claims
Speed Airbag
Analyze& Gravity Seatbelt
How the Create Value
Accurate Hour/day
customer What the
Mileage
drives Acceleration
Speed Deceleration
customer is doing
Real Information
S
A
©Tokio Marine & Nichido
L 61
E

56. Cloud Computing Mobile Device Smart Technologies
How to be “Selected” Anything
among the “cloud” Anytime
Anyplace
Any amount
Far powerful than
The “CLAY-1” iPad2!
Overwelming power Partnership
beyond imagination
Smart Grid
Geological position, schedule, Smart City
contacts, music, shopping record,
train pass, airline tickets…everything
Smart Share
“Just now, just for you,
Breathtaking
just here” information
business model
Emancipation of
“Digital Slaves”
Change the world
We are smarter
than me
Information 33 times larger than
that of the web world
“We” are smarter
than “Me”
Sensors on
Sensors in Revest of individual
human bodies Collaboration beyond “Unleash the talents
automobiles power
the barriers of of individuals
“Crowd beats many
companies and
professional talents
organizations
Sensors in
mountains, rivers
and lakes
Exchange value
Emancipation of
Sensors in without money
“Corporate Slaves”
town
Sensor Network Social Network Crowdsourcing
©Tokio Marine & Nichido

57. Thank You!
63