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Head of Japan’s largest and most conservative insurance group aims to deploy nursing and preventive medical services in an aging society around the world to become a global giant.
Kengo Sakurada, CEO of SOMPO Holdings, told the Financial Times that the pivots of groups away from the traditional business of accidents and disasters will be shaped around expression. “Vuca”.. The term was coined by the US military to refer to volatiles, uncertainties, complexity, and ambiguity.
“There is plenty of room to change yourself and change something new,” Sakurada said. “If we continue to be a traditional insurance company, I don’t think we can be the best in the world.”
Sakurada added that he would also consider overseas transactions in order to acquire more customers. Non-life insurance companies have allocated 600 billion yen ($ 5.4 billion) to “growth investment” over the next three years.
2016, non-life insurance Buy Bermuda-based rival Endurance For $ 6.3 billion, it’s a template for the company’s approach to transforming its portfolio and quickly rebranding and consolidating acquisitions. This has historically not been the strength of the Japanese group when it comes to overseas mergers and acquisitions. Through M & A, the Group hopes to double its overseas earnings ratio to more than 30% by the fiscal year ending March 2024.
“To survive in this insurance business world, we have to be huge. Our size, already one-third [Japanese] The market share isn’t quite enough, “said Sakurada.
Last year, Sompo invested $ 500 million in Palantir, a US data analytics group co-founded by billionaire Peter Thiel. The two have set up a joint venture as insurers are leveraging Palantir’s technology to transform the fast-growing but deficit- $ 90 billion long-term care industry.
Sompo entered the industry with a series of domestic acquisitions in late 2015, making the group the second largest long-term care service provider in the country.
Palantir uses large amounts of data collected at long-term care facilities to improve the productivity of long-term care workers and analyze patient health.
At some point in the future, non-life insurance companies envision creating insurance packages that can predict the progression of dementia and plan how long patients can continue to drive without being involved in an accident.
In the long run, the company wants to build a $ 5 billion business using a variety of data platforms, including those working for the long-term care industry.
According to Sakurada, Japan’s rapidly aging society offers both challenges and opportunities to create businesses that can ultimately be brought to China and other countries facing similar social problems. To do.
“If we succeed in Japan, we can export that model and know-how not only to developed countries but also to developing countries,” he said.
Japan’s non-life insurance company aims to develop long-term care services in an aging society around the world.
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