MS&AD Insurance Group CSR Report 2014 Digest Version Message from the President MS&AD Insurance Group's the “reorganization by function”strategy Partial Overview Partial companies recognize anew our social responsibility. We Headquarters Headquarters also have been actively working through our initiatives The MS&AD Insurance Group is addressing functions functions to prevent and reduce disasters as well as support the challenging task of intra-Group reorgani- MS&AD Holdings reconstruction activities. zation in an unprecedented style, seeking to realize further progress with a sense of speed. Integrated Risk Management Using the foundation that we have built over the years By means of the “reorganization by function” Foreign Business Control as a springboard, we have embarked on our new strategy, we are striving to attain three goals medium-term business plan "Next Challenge 2017," – (1) realize ‘Growth’ and ‘Efficiency’ across setting our sights to further develop our company. The the entire Group, (2) reinforce our response BUSINESS/SALES CHANNEL Aioi Nissay Dowa Insurance

Mitsui Sumitomo Insurance REORGANIZATION basic strategy of the Next Challenge 2017 is to reorga- to diverse customer needs by maximizing the nize by function, which was announced in January FY leveraging of the special strengths of the two Hull Insurance, Cargo Insurance, 2013, enhance group governance, and drive forward core non-life insurance companies (MSI and Aviation Insurance ERM (Enterprise Risk Management). The reorganization ADI), and (3) strengthen the Group gover- by function strategy is a business model that has never nance system centered on the Holding Com- Motor Channel Agencies which have Aioi Nissay Dowa Insurance as been done before, which will make business concepts pany – and we expect that doing this will a main business partner of group companies clearer to demonstrate their enable the Group to achieve sustainable individual strengths to maximize group synergy, and growth and to increase its enterprise value. REGIONAL SALES NETWORK, COMPANY thereby enhance corporate values across the entire BASE CONSOLIDATION AND SHARING group while meeting the ever diversifying needs of our TRANSFER OF THIRD-SECTOR I am Yasuyoshi Karasawa, and I took over as president of customers. By following through on this reorganization LONG-TERM CONTRACTS this company, effective June 23, 2014. With this CSR by function, we will swiftly realize sustainable "growth" MSI Aioi Life Report of FY 2014, I would like to introduce the CSR initia- and "business efficiency" at the same time. REORGANIZATION OF OVERSEAS BUSINESS tives of MS&AD Insurance Group. Consolidation of foreign subsidiaries/ Our CSR activities in 2014 have two core elements that operations Since its foundation in April 2010, MS&AD Insurance are based on our group basic strategy of Next Chal- Group has been consistently working together for the lenge 2017. One is "to earn trust” and the other is "to achievement of the medium-term management plan contribute to solving social issues” through “improving "New Frontier 2013," which was initiated at the inception the quality of our products and services." Also, we will of this company, under the philosophy of "bringing deepen our engagement by making the most of KPI CSR information Perspective Website security and safety and contributing to the develop- (Key Performance Indicators) to visualize our progress. http://www.ms-ad-hd.com/en/csr/index.html ment of a vibrant society and to help secure a sound Toward the goal of "creating a world-leading insurance of disclosure future for the earth, through the global insurance and and financial services group that is always in pursuit of PDF of CSR report (Full version) and the Digest version is downloadable. sustainable growth and enhancing enterprise value,” Data related to CSR approaches is listed. financial services business." Especially for our CSR activi- MS&AD Insurance Group issues a CSR report every we mobilize and use the strengths of all our employees ties, we have been promoting our initiatives based on year so that stakeholders can understand our CSR of all our group companies under the new leadership our company philosophy and management vision to activities. structure in order to meet the expectations of all our fulfill our social responsibilities through all our business This Digest version is issued so that the overall picture stakeholders every step along the way. We appreciate activities. of the Group's CSR approaches and the outline can your continued support for our endeavors. be understood. Please see the CSR report on the Contents In the meantime, over the past four years, we have website about the details of each approach. experienced major natural disasters in and outside the ●Implemented actions(main items) for achieving the country, including the Great East Japan Earthquake. July 2014 social responsibility that the MS&AD Insurance Group Message from the President 1 We focused our overall group effort on the prompt is required by stakeholders are reported by subject. payment of claims with a vital role as a group of insur- Representative Director ●The characteristic measures in each company of the ance companies, and all our employees in all our group President & CEO MS&AD Insurance Group are reported. (Coverage of CSR in the MS&AD Insurance Group report is as follows) 3 Scope of report Pillar of CSR Initiatives Ⅰ ■ Period covered Improvement of Quality of Products and Services 5 Principles for Financial Action towards FY2013 (April 1, 2013 - March 31, 2014) Participation in initiatives * The report also includes some activities that began in April 2014 or later. a Sustainable Society Pillar of CSR Initiatives Ⅰ MSI, ADI, MSI Aioi Life, and InterRisk Research Institute & ■ Subject organization and abbreviation 8 U.N. Global Compact Consulting have signed the "Principles for Financial The following is a list of abbreviations for the Group and its Growth with Our Agents The MS&AD Insurance Group, following Action towards a Sustainable Society (Principles for member companies. the declaration of support of the United Financial Action for the 21st Century)," which was (Domestic Group insurance companies are indicated by asterisks.) Pillar of CSR Initiatives Ⅱ Nations Global Compact in June 2004, by 9 published in October 2011 to provide behavioral ●MS&AD Insurance Group For a Sustainable Global Environment MSI as the first financial organization, will guidelines for financial institutions desiring to play their ●MS&AD Insurance Group Holdings, Inc. keep conducting corporate activities that required roles and maintain their responsibility to build MS&AD Holdings ▶ Pillar of CSR Initiatives Ⅱ respects the 10 Principles regarding a sustainable society. ●Mitsui Sumitomo Insurance Co., Ltd. Contributing to Creating a Safe and Secure Society 11 human rights, labor, the environment, and ▶MSI* anti-corruption. ●Aioi Nissay Dowa Insurance Co., Ltd. Principles for Responsible Institutional ADI* ▶ Pillar of CSR Initiatives Ⅱ Investors ●Mitsui Direct General Insurance Co., Ltd. 13 Principles for Sustainable Insurance Mitsui Direct General* To Resolve Issues of Local Community MSI signed the "Principles for Sustainable Insurance" ≪Japan’s Stewardship Code≫ ▶ In May 2014, MSI and ADI assented to the main idea of ●Mitsui Sumitomo Aioi Life Insurance Co., Ltd. published in June 2012 by the United Nations Environ- Japan’s Stewardship Code from the perspective of ▶MSI Aioi Life* ment Program Finance Initiative (UNEP FI). These ● fulfilling corporate social responsibility and announced Mitsui Sumitomo Primary Life Insurance Co., Ltd. Respect for Human Rights and Growth of Employees 15 principles require insurance companies to consider the MSI Primary Life* their support. ▶ issues of its business activities related to the environ- ※We also report about activities of Affiliated Operating Companies ment, society, and governance in order to fulfill their such as InterRisk Research Institute & Consulting. Outline of MS&AD Insurance Group 18 role in the sustainable development of the earth. ■ Publication : September 2014

1 CSR Report 2014 CSR Report 2014 2 （※1）

CSR in the MS&AD Insurance Group 対象会社 4

ADI ADI MSI, MSI, CSR Report 2014 Covered insurance insurance insurance companies companies companies Companies domestic group domestic group domestic group MS&AD Holdings, MS&AD Holdings, ℓ ％） the the ap- ap- 6.8 year 70.0% (-0.2%) 90.0% 90.0% Group 13,560t Equal to Target previous than the (-15.0%) 7,612k Continue Continue or greater proaches proaches （＋ Over 90.5% Over 90.0% 163,249MWh ％） 296 10.5 see P6 see P6 see 11,168 24,914 details, details, (-4.1%) 15,947t 87.0% (-0.6%) 7,126KL Perfor- mance

For further further For further For 4.0 points 4.3 points （＋ 163,505MWh FY2013 FY2014 ％） the the 10.9 ap- ap- year 90.0% 89.4% 90.0% 90.5% 90.0% 87.0% 90.0% 65.0% 61.9% (-2.4%) 7,264KL (-0.5%) 16,004t Target Equal to previous than the Continue Continue or greater proaches proaches （＋ 163,698MWh FTSE4Good Index Series Index FTSE4Good Register Investment EXCELLENCE Ethibel Indices ECPI® Morningstar Socially Responsible Investment Index Index Investment Responsible Socially Morningstar (MS-SRI) ・ ・ ・ ・ 231 three companies, Mitsui Direct General, MSI Aioi Life, and MSI MSI and Life, Aioi MSI General, Direct Mitsui companies, three Primary Life, for the aim to further our initiatives effectively in effectively initiatives our further to aim the for Life, Primary line with the PDCA cycle. PDCA the with line MWh 5,697 87.6% 89.9% 51.7% 89.3% 88.7% 16,142 14,431t Perfor- 164,521 mance FY2012 4.1 points4.1 4.3 points ） *2 Ratio of customers wishing to recommend any agents to their friends and acquain- tances. Ratio of customers satisfied with accident response for automobile insurance. Ratio of customers satisfied with accident response for fire, personal accident, and casualty insurance. Ratio of customers who are willing to recommend either MSI or ADI to their friends and acquaintances. Electricity consumption of all domestic locations Paper consumption of all domestic locations (Copy paper, prints, machine tabulation) Gasoline consumption of all domestic locations (From FY2013) The ratio of contracts selectedwhich the Web policy Number of female employ- ees above section manager Ratio of employees feeling pride or job satisfaction (all-employee average on a 6-point scale). Ratio of employees, regardless of sex and age, feeling free and lively at workplaces (all-employee average on a 6-point scale). Index （ ） *1 （ as a result of studies, and developinging our productsand improv- to address these new issues/risks. (1) Improvements(1) of products/services initiated by customers' voices. satisfaction Customer (2) response overall for accidents. to results) (questionnaire (3) Ratio of customer recommendation company/agents for (questionnaire results). (5) Electricity consumption Paper(6) consumption (7) Gasoline consumption (8) Web policy selection rate Number(9) of female managers (section manager or above) Employee(10) satisfac- tion(questionnaire results), "Pride, Job satisfaction" Employee satisfac-(11) tion (questionnaire results), "Working Vigorously" Number(12) of employees practicing social contributionactivities Of the(13) above, the number of employees participating in waterside biodiversity conservation activities. (4) Disclosing new issues/risks confronting our society Contribution to solving social issues Earning trust through the improvement of through improving quality of products quality of products and services and services Diversity, External Evaluation Key Performance Indicators (KPIs) to Promote Our CSR Initiatives CSR Our Promote to (KPIs) Indicators Performance Key Employee Satisfaction, Pillar I Pillar II Social Contribution Activities Issues

Priority Issues The MS&AD Insurance Group introduced "KPIs for the promo- the for "KPIs introduced three in Group Group" Insurance MS&AD Insurance The MS&AD the at initiatives the CSR ADI, of at and MSI, tion Holdings, introduced MS&AD were including KPIs the companies, 2013, Group fiscal After 2012. fiscal in Socially Responsible Investment(SRI) is a method of investing that that is of a investing method Investment(SRI) Responsible Socially assesses the company not only through profitability but from a viewpoint and of Social Corporate this Responsibility(CSR) prac- tice is spreading. The MS&AD assessment Insurance provided Group by is major utilizing SRI the evaluation organizations improve its to approaches. As Index. of SRI July of The 2014, components MS&AD following Insurance the in included is Group (*1) Former(*1) brochure-type covenants are replaced with "Environment-friendly(*2) Number of employees covenants" participating which are available in or on contributing the Company website to volunteer (P10). activities at work or in private.

Priority Issues I: Earn customers' trust through improvement in quality Priority Issues II: Resolution of Social Issues (Environmental) Our Values "Customer "Customer Focused," "Teamwork," "Innovation," "Integrity," sionalism" "Profes- Priority Issues II: Resolution of Social Issues (Society) Importancefor the MS&AD Insurance Group

Earn trust through the improvement of product and service quality quality service and product of improvement the through trust Earn the to contribute and stakeholders, with communication on based issues. social of resolution

Importance for Stakeholders During the drafting process of the "Next Challenge 2017," which started started which 2017," Challenge "Next the perspec- of two process from drafting mapped the During were ISO26000 of issues 37 the 2014, April in tives to establish website. the our on Pillars Report CSR the of on found CSR be can Initiatives (priority details issues). Further Mapping the Pillars of CSR Initiatives (priority issues) (priority Initiatives CSR of Pillars the Mapping Communicate with stakeholders, with customers at the center, promote the at with promote customers the with center, stakeholders, Communicate win to operations and improve quality and service of product enhancement trust. Promote the improvement and development of and the and products Promote development improvement services that contribute contribute to resolving social issues (global environmental conservation, prevention/mitigation of disasters prevention/mitigation and accidents, low birthrate and aging population), reduce the environmental burden of burden and our activities business the reduce environmental population), conserve biodiversity. conserve Our Vision To create a world-leading insurance insurance a world-leading create To and financial growth services sustainable seeks group consistently that value enterprise enhance to and Explanation Earning trust through quality. the trust improve- through Earning service and product of ment Contributing Contributing to the resolution the of quality. improve- through issues social service and product of ment Take steps to protect the global the protect to steps Take Strive to raise corporate value. corporate raise to Strive As a member of society, contribute society, of member a As that meet customers' expectations customers' meet that quality. for to its sustainable development. sustainable its to information and appropriate returns appropriate and information shareholders. to environment. cooperate to fulfill corporate to cooperate responsibility. Grow together as partners. as together Grow and purpose, of sense a grow. to opportunities Maintain sound relationships and relationships sound Maintain Provide products and services and products Provide Provide a comfortable environment, comfortable a Provide Provide appropriate disclosure of disclosure appropriate Provide Ⅰ Ⅱ Pillars ofCSR Initiatives (priority issues) Perspective of CSR Initiatives of the MS&AD Insurance Group Insurance MS&AD the of Initiatives CSR of Perspective

Pillar of CSR of Pillar Initiatives Pillar of CSR of Pillar Initiatives The approach is guided Our by Mission, Our Vision and Our Values. Stakeholders "Next Challenge 2017" Group Basic Strategy Basic Group 2017" Challenge "Next Our Mission To To contribute to the society development and of help a secure earth, a vibrant by bringing sound security and safety through future the for businessservicesfinancial and insurance global the Customers Shareholders The Environment The Agents suppliers,etc.) communities Local/international Employees Business partnersBusiness (contractors and (contractors Based on the Group basic strategy of "Next Challenge 2017," we established the Pillars of of Group. Pillars the the established across we common 2017," issues Challenge "Next priority of as strategy basic Group undertaking the on are Based we which Initiatives, CSR ● We fulfill our corporate social responsibility to the stakeholders through all business activities. business all through stakeholders the to responsibility social corporate our fulfill We The MS&AD andInsurance Our Values Group'sGroup to establish has basic Challengebeen the strategyguided Pillars mote2017," by ourand in(MaterialOur CSR thewill Mission, initiatives. new utilizeIssues), medium-term Our whichkey Vision, performance consider management the indicators plan "Next (KPIs) to pro-

●Basic principles of the approach are corporatehuman rights, and environmental conservation.governance, compliance, risk management, information ●Ourdisclosure, stakeholdersrespect for local/international communities. are our customers, shareholders, agents, business partners, employees, the environment, and CSR in the MS&AD Insurance Group CSRMS&AD in Insurance the CSR Report 2014 3

CSR in the MS&AD Insurance Group Pillar of CSR Initiatives I Improvement of Quality of Products and Services

The whole Group strives to improve the quality of products and services at all times, and promotes better business practices based on feedback from stakeholders, thereby winning trust from society and customers and generating growth.

Quality Improvement in Response to Stakeholder View Develop and Improve Products and Services from Stakeholders Perspective Schemes for receiving feedback from Schemes for receiving feedback from The mission of MS&AD Insurance Group is to provide the best solution to social anxiety and risks, reflecting its basic focus on the public nature of the insurance and financial service business. Our aim is to deliver to people security and safety, and supporting customers external experts the enrichment of their lives. We will achieve this through activities such as publicizing the results of research and studies on new At MSI, ADI, and MSI Aioi Life, an ad-hoc unit that engages The MS&AD Insurance Group has constructed various social issues and risks, and developing and improving our products, while always listening to the opinions of our customers and in the quality improvement of business practices conducts schemes to take in stakeholder opinions and reflecting them other stakeholders, and taking into account the various changing circumstances of our environment. in discussions on the management level to improve our work periodical exchange of ideas with external professionals processes and the quality of our products and services. to secure advice for providing satisfactory products and Development of products and services responding to new risks Customer Questionnaires services to customers. Those expert opinions are reported to Focusing on the Japanese government’s growth strategies that are attracting attention, MS&AD Insurance Group is developing Pillar of CSR Initiative I Improvement of Quality of Products and Services and Products of Quality of Improvement I Initiative CSR of Pillar management and utilized in quality improvement. Services and Products of Quality of Improvement I Initiative CSR of Pillar To proactively understand the expectations and needs of new products to provide optimal coverage for those business areas. MSI is developing new products and started sales for the our customers and improve quality, MSI and ADI ask their renewable energy field which is growing notably, for agriculture, which is an area in the sixth industry that is gathering attention, customers about the degree of satisfaction with the services Schemes for receiving feedback from and particularly in the industrial field of extending healthy life expectancy, which is deeply related to the medical and nursing at the time of contract, the advisability of the products agents fields. Furthermore, MSI started sales of products developed in response to the increasing needs for measures against information and services to others, and the degree of satisfaction with leaking risks.We will continue to proactively develop progressive products in response to new risks that would occur with changes MSI, ADI, and MSI Aioi Life utilize the opinions of agents for in policies and environments, technological innovation, and other factors. accident responses through the questionnaire. As a result, the development and revision of easily understandable they designate key performance indicators (KPIs*), and are products from the customer's perspective. By valuing Schemes for developing and improving products and services working on efforts to gain trust through the improvement of communication with agents, it has established schemes MS&AD Insurance Group analyzes and considers information obtained at any point of contact with customers and other the quality of their products and services. like the Product Monitor Program / Proposal Box and Agent stakeholders, so as to improve the quality of our products and services, as well as our operations. Through efforts for increasing *KPI: Key performance indicator (P4) voice system to listen to opinions. corporate value and resolving social problems, it aims to fulfill its responsibilities to its stakeholders, and meet their expectations. Customer feedback structure Domestic Group insurance companies formulated Customers Shareholders Agents their response policies in accordance with the "MS&AD Schemes for receiving feedback from Insurance Group Basic Policy for Responding to Customer employees Communications" and sincerely carry out responses to The MS&AD Insurance Group has adopted a system to

customer opinions, which include complaints, and are collect employees' opinions for business improvement. Questionnaire for customers, Complaints, IR meetings, Personal Meetings for personnel in charge, considering measures for improvement. MS&AD Holdings on Their opinions are considered at each division at the Opinions, Contact Center, Home Page, interviews, Briefing sessions Distributor meetings, Product monitoring Communication with employees of for investors system, Posting system a quarterly basis confirms the status of accepting complaints headquarters, and the feedback of results is provided Business Partners agencies and the Company Employees at each company, checks whether systems regarding through such means as bulletin board disclosure. Long-term responses to customer communications are properly issues are also monitored and considered by an ad-hoc unit. Local community/ International society Communication Environment managed, and reports it to the Management Committee. They also have a system where corporate executives with Stakeholders

In addition, MSI, ADI, MSI Aioi Life, and MSI Primary Life exchange views directly with the employees in order to Checking of Questionnaire for operate a complaint handling management system in utilize the views of employees. outsourcing contractor employees, Talk with management management, Submission accordance with the international standard "ISO10002" system (Quality Management - Customer Satisfaction - guidelines Communication with experts, NPOs, and NGOs, Dialogue Communication with experts, NPOs, and exchange with local communities, Holding of NGOs, Studies on global environment for complaints handling in organizations). seminars, symposiums, and other events. and natural disasters Improve the Simplicity and Convenience for Customers Development and improvement Analysis/Consideration The MS&AD Insurance Group is developing business processes Our declaration form won UCDA Award 2013 of products and services utilizing the Internet and PCs to make products and services MSI Aioi Life has introduced a life insurance declaration simpler and more convenient for customers. We also have systems form designed with the aim of enabling customers to to provide information about insurance products and services to a properly and completely declare their health condition. In Improvement of products and services wide range of customers regardless of age and ability. the "Category of Life Insurance Declaration Form of UCDA based on customers' opinions (KPI 1.) Approaches to resolve social issues (KPI 4.) Outcomes in FY 2013 FY in Outcomes Award 2013" hosted by the Universal Communication Started to respond on Saturday, Sunday, and holidays to inquiries, Developed the "Comprehensive Coverage Plan for Small and Middle- consultation, procedures for partial change of contents of contract in sized Water Power Generation", the "Comprehensive Coverage Plan for Design Association (UCDA), this declaration form won the respect to Overseas traveler's insurance which can only be bought Food & Agribusiness," and the "Comprehensive Coverage Plan for Provision of understandable explanatory top prize "UCDA Award 2013" (a prize for design that easily online. [MSI] Medical Institutes," as products to respond to new risks. [MSI] (P6・P10) documents to improve convenience communicates information). Provided tools for taking into account the readability of the font size Supported sustainable development of small and middle-sized and style of senior accident insurance pamphlets, policy conditions, companies. [MSI/ADI] MSI and ADI adopted fonts that are easy to read and identify in and disclosure statements friendly for senior customers. [ADI] （P11) pamphlets and disclosure statements for explaining to customers Continued to improve screen view and operability of its website. Publicized driving methods to reduce traffic jams, encourage [Mitsui Direct General] eco-driving, and prevent traffic accidents on a dedicated website. about important areas in their documentation from October Initiatives for people with disabilities [Mitsui Direct General]（P12） MSI has adopted SP codes, which were developed for older Launched the "New Medical Insurance A (Ace) " which includes a main 1, 2013, with plain terms and figures. In response to customer We revised the "declaration form" in pursuit of understandability and contract that sufficiently covers short- and long-term hospitalizations, opinions, we started to streamline our disclosure statements for fire people or those with visual impairment, on the pamphlets easiness to fill out, which was certified with the "UCDA certificate," and eight special contracts that can be selected from depending on and won the "UCDA Award 2013". [MSI Aioi Life]（P5） insurance in July 2014. for its GK Automobile Insurance, GK Fire Insurance and GK your needs. [MSI Aioi Life] (P13) Personal Accident Insurance products. When the codes are Prepared the "Claim Support Guide," which summarizes matters that Launched the "Tanoshimi, zutto" (pleasure for life), foreign-currency fixed In addition to efforts for boosting readability and understandability are inquired about frequently regarding death insurance claims. We amount life insurance, which responds to risks that arise from old age and read with a special reading unit, the recorded information is started enclosing this guide with the claim documents. [MSI Primary the needs for building asset portfolios with the backdrop of a super-aging of documents that are sent to customers, we have also Life] society becoming a reality. [MSI Primary Life]（P13） introduced the "eco insurance certificate" and the "insurance reproduced by voice. clause on the web," which are available for browsing anywhere MSI and MSI Primary Life prepare pamphlets certified by the Color Universal Design Organization, an NPO entity that with a PC and other devices. This would also eliminate the Increasing corporate value Resolution of social problems concern about misplacing the information and makes the letter presents easy-to-read information to all people regardless of enlargement and data retrieval functions available. personal differences in color vision. Realizing management principles (Mission) and management vision

5 CSR Report 2014 CSR Report 2014 6 Pillar of CSR Initiatives I Growth with Our Agents

We strive to maintain and improve quality through ongoing dialogue with agents. We also aspire to grow with agents while supporting the work quality of agents and de- livering high-quality products and services to customers of all types.

Payment of insurance claim Quality Improvement of the Improvement of Agent Work Quality Communication with agents service preferable to customers Contact Centers Scheme and system for Improvement of Cooperation with organization of agents Reliable receipt system for accident At the Contact Centers of the Group insurance companies, Agent Work Quality MSI and ADI are supporting mutually provoked synergies are being created by joint activities to raise the The headquar ters' depar tment in charge of agent information exchange between the company and its reports and the provision of information quality of dealings with customers and the joint use of the education provides education programs for agents to gain agents through the agent organization, so that about accident response progress telephone system infrastructure. knowledge about topics, such as compliance, products, communication is activated and services of higher quality At the domestic non-life insurance companies in the Group, office work/systems, and sales skills. In addition, business are offered to customers. each company's accident report reception center accepts procedures, employee behavior, and awareness reviews At MSI, "Mitsui Sumitomo Insurance Agent Association", Pillar of CSR Initiative I Improvement of Quality of Products and Services and Products of Quality of Improvement I Initiative CSR of Pillar domestic accidents reports 24 hours a day, 365 days a year. Quality improvement in the Group on the basis of customers' opinions (complaints and organized mainly by professional agents, and "Advanced In addition, during midweek nights and holidays, in response Contact Center Strategy Meeting and Quality compliments) and examples of suggested improvements Club (AC)", formed around automobile mechanic to the customer’s request, initial support such as "contacting Improvement Committee were incorporated into agent workshop sessions. businesses, have been active. Taking into account with the counterparty of the accident" is provided. In case the reorganization by function, AC will start to be The MS&AD Insurance Group holds the Group Contact of hospitalization due to injury, the company also provides operated jointly with ADI from October 2014. Both agent Center Strategy Meetings and the Group Contact Center Agents Our with Growth I Initiative CSR of Pillar a service for visits by special-assignment staff. The assigned Support for Improvement of Agent Work Skills organizations are putting their best effort to upgrade their Quality Improvement Committee holds meetings on personnel gives information on the state of progress after organizational setups and boost their growth through a regular basis, which is composed of Contact Center Providing an Online Learning Environment accidents and makes efforts to reply to their queries from organizational activities so that agents can offer high representatives. Besides the sharing of information, the MSI and ADI have a "College" that allows for the integrated their perspective. quality services and the most optimal insurance product meetings are held for the purpose of making the work of management of insurance qualifications, group training to customers. Contact Centers more efficient and improve their service attendance, and e-learning progress by participant. The Improvement of skills of personnel quality. In ratings by HDI (Help Desk Institute), the world's e-learning contents are used by agents and canvassers, At ADI, the Nation-wide Professional Group (*) (AD We are enged in the quality improvement of personel largest membership association for the service and support delivering preliminary learning for seminars and qualification Professional Group) was set up by professional agents. directly responsible for customer support. industry, ADI received three stars, which is the highest score acquisition on compliance, details of products, and other The AD Professional Group works on committee activities information, which leads to better solicitation quality. for enhancing growth and improve quality. They Good Support Campaign for inquiry counters, and MSI and ADI also received three stars for its support portal site. MSI, every month, delivers the "Agent Educational Program", a also conduct local and social contribution activities, MSI implements training programs for telephone call-handling to continue providing assurance and satisfaction to Personnel exchange system studying tool to enable an agency to develop and educate role-playing and for preventing complaints so employees solicitation staff independently. By delivering an information customers through mutual efforts between agents and assigned to the total loss support department can provide The personal exchange system between contact centers program about insurance matters, “NewsADvance” and the company. customers with services of a high-quality standard. within the Group was established, and staffs of contact a program to introduce good practices related to agent Business quality improvement project centers actively interact with each other through "SV business, "Genba Damashii", ADI introduces information and (*) Organization consisting of professional agents of ADI ADI is promoting the LIPS (Lady Improvement Projects), one of (Supervisor) networking event", "SV discussion meeting", tools useful for solicitation activities by agents and canvassers. and MSI Aioi Life Persons qualified in non-life and life the project for the quality improvement of operations with a "Mutual dispatch of trainees" and "Participation in training as insurance perform the activities. an observer". Training in response to the needs of agents focus on female employees. This project is improving quality MSI Primary Life by improving and reviewing approaches at each workplace Call handling contes t developed and provides while presenting and sharing results of various activities at the To improve call-handling a new training program Management assistance of agents annual national tournament. skills, enhance motivation for agents, "Financial and exchange between Knowledge Academy," More specialization and objectivity as well as a middle- all the group company making it possible to to long-term perspective are required to provide a contact centers, the MS&AD systematically learn high level of support for agent management. Therefore, Group annually conducts about fundamental the Call-Handling Contest. MSI established a career agent management support financial knowledge office in the sales promotion department. About 90 In fiscal 2013, 15 finalists My Value (life planning, taxation, specialist staff in support of agent management, which representating each pensions, and encourages agents to sustain growth and accomplish company competed their Call handling contest Primary SUCCESS Training Center inheritance) with a focus their goals through periodical meetings (once a call-handling skills with each other. on practical knowledge. month)."

Mariko Naka Sharing telephone system infrastructure Framework to secure quality in agent work By setting up a "Professional Support Center " in the retail Senior staff, Service Center The Contact Centers of MSI, ADI, Mitsui Direct General, MSI Agent Quality Certification System sales development department in April 2014, ADI Mitsui Direct General Aioi Life, and MSI Primary Life now share a single telephone MSI thoroughly makes agents execute a series of operations provided various support and education by special system. related to the solicitation of insurance called the "Fundamental staff to professional agents. ADI strives to expand the I believe that claim adjusting work that This telephone system infrastructure is placed in two Insurance Cycle" at agents. Furthermore, it established an business foundation of the professional agents and I am in charge of can help customers locations, one in Chiba Prefecture and the other in Hyogo improve their quality, by supporting agents individually feel reassured the most. I will strive to agent quality recognition system (Q mark system) based on Prefecture, so that either one can take the place of the other the quality index related to the "Fundamental Insurance Cycle" to help management, clerical work, and IT utilization, as quickly pay insurance claims, respond in times of system failure at one location caused by natural empathetically to consultations by and knowledge about insurance products, damage support, well as practical training for insurance solicitors in accumulating expertise, so that customers disasters or mechanical hitches. This integration of telephone and other information in an effort to boost quality. respect to knowledge on insurance products, peripheral system infrastructure has resulted in a synergistic effect, such who had an accident can rely on me. To improve the quality of agent and canvasser operations, ADI knowledge, sales methods, and other information. as the reduction of system maintenance costs. I am most motivated by customers' saying clarified the quality standards and action guidelines, which "I'm lucky that I have an insurance policy". agents and canvassers need to meet for each operational process. They are now promoting the customer-oriented reform effort "Project ADvance."

7 CSR Report 2014 CSR Report 2014 8 Pillar of CSR Initiatives II For a Sustainable Global Environment

The situation of global warming and biodiversity indicate that the sustainability of the world is on the verge of a crisis. MS&AD Insurance Group works on those issues by provid- ing products and services to secure "a sound future for the earth" with our stakeholders.

Supporting Climate Change Response Contributing to mitigating climate change Climate change is already a reality in progress. We will Support to establish disaster preparation systems New businesses have emerged that address the worsening The Use of Sustainable Resources mitigate climate change, and as a business that provides issue of global warming. Through providing insurance MS&AD Insurance Group provides Eco-insurance certificates risk solutions, we will support mitigation measures by and consulting services, we contribute to stimulating the and Web policy clauses, encourages the use of recycled assessing and controlling risks caused by climate change economy and mitigating climate change by proactively Pacific Disaster Risk Financing Pilot Program automobile parts during car repair and other activities, in an impacts. supporting the growth of such businesses. Since 2013, MSI has been participating in the "Pacific Disaster effort to promote a circular society and reduce environmental Risk Financing Pilot Program," which was cofounded by the burdens. Supporting Corporate Adaptation Measures Japanese government and the World Bank. Supporting new businesses that leads to climate This program is designed to finance quick reconstruction change mitigation Eco-insurance certificants and Web policy clauses

Pillar of CSR Initiatives II For a Sustainable Global Environment Global Sustainable a For II Initiatives CSR of Pillar funds to the vulnerable Pacific Island countries, when they are Environment Global Sustainable a For II Initiatives CSR of Pillar As a part of their environmental protection activities, MSI afflicted by natural disasters. As the frequency of large-scale In line with the start of the Risk management consulting services and ADI have introduced, in lieu of documented insurance disasters is increasing, through this program, we aid the natural "feed-in tariff" system established At InterRisk Research Institute & Consulting, we utilize our high certificates (or continuing insurance certificates) and "policy disaster activities in the Pacific area, and we fulfill our social in July 2012, MSI released the and leading level of expertise on the environment to provide leaflets," "Eco-insurance certificates" and "Web policy clauses" responsibilities in the area. "Comprehensive Coverage risk solutions such as analyzing environmental risks that cause Plan for Mega Solar" for mega that can be referred to on their websites. Through these efforts, damages to corporations, consulting on risk prevention and solar power producers in June we are driving forward the reduction of paper use. To the mitigation, establishing environmental management systems, Support on Thailand's Natural-disaster insurance scheme 2012, and the "Comprehensive extent that our customers agree with this idea, we support and providing a variety of survey research. With natural disasters taking place repeatedly causing Coverage Plan for Small and environmental protection with our donations. immense damage around the world, the Thai government has Medium-sized Water Power At ADI, customers who selected "Eco-insurance certificate" Generation" for small and medium-sized producers of and the "Web policy clause" can receive extra "Bell Mark Weather derivatives instituted "Thai Natural Disaster Insurance System," after learning lessons from the flood damage that occurred in 2011. MSI hydropower in July 2013. These plans respond to the need points." Through these activities, we are proactively involved in MSI sells weather derivative products which helps hedge or assisted the establishment of this system. This contribution to the for risk coverage, and we support the spread of renewable social contribution activities. mitigate losses caused by unfavorable weather, and the U.S. Thai insurance industry, which included the concerted energy by providing insurance products. subsidiary MSI GuaranteedWeather also provides weather recovery efforts for the Thai flooding recieved high recognition. risk hedging instruments. This company has been awarded Use of recycled automobile components the "Best Dealer, Asia" award four times by the U.K. monthly Environmentally friendly automobile insurance MSI explains to customers and auto-repair shops about magazine "Environmental Finance" in the area of weather MSI and ADI have obtained the Eco-Mark certification recycled components in a careful and easy-to-understand derivatives. through the promotion of Eco-insurance certificates and Web manner. It also asks for customer's desires and requests, and policy clauses, and provision of information for safe driving then proposes a repair method. In addition, through alliance and approaches to reduce environmental burden, such as maintenance factories, we proactively make an effort for encouraging the use of recycled automobile parts. In addition, component repair which generates no waste parts and less to encourage the spread of automobiles making a higher environmental burdens. Supporting the Sustainable Use of Ecosystem Services environmental contribution, MSI, ADI, and Mitsui Direct General At ADI, for the approporate disposal of waste cars and the offer insurance discounts for environment-friendly automobiles, commercialization of recycling parts, the "total loss vehicle Natural bounty provided by biodiversity (ecosystem Supporting the creation of a biodiversity-friendly such as hybrid vehicles, electric vehicles, CNG (Compressed online auction system" was developed in collaboration with services) is the basis of our lives and economic activities. Natural Gas) vehicles. At ADI, to spread environment-friendly the NGP group (National network fo dismantling companies). A business model in consideration of biodiversity supports local communities (Indonesia) automobiles and to spread driver awareness, products and About 25,700 units were released and approximately 1,620 the sustainability of the entire society, which includes MSI has promoted the Indonesia tropical rain forest recovery discounts are provided, such as the car insurance "Dohn! to companies participated in fiscal 2013. companies. project. Since 2005, in cooperation with the Department of Omakase" and the "PAYD" automobile insurance that is linked Forestry of Indonesia, we have planted approximately 300,000 to driving distance. trees to restore and rehabilitate wildlife sanctuaries, which Biodiversity conservation consulting services deteriorated due to illegal logging by local residents during the InterRisk Research Institute & Consulting makes proposals economic crisis around 1997. To prevent the residents from The status of reduced environmental burden from business activities ranging from corporate greenspace land use at such illegally cutting down trees again, agricultural technical locations as business establishments and factories, to proposals guidance for financial independence and environmental education for teachers of elementary schools were on biodiversity risk assessments and business opportunities At MS&AD Insurance Group, all companies and employees implemented. In this way, we aim at creating a sustainable Domestic Group environmental burden performance across the entire business value chain. In this area where are working together to reduce environmental burdens local community capable of restoring forests. In FY2014, We strive to reduce the consumption of energy and paper new environmental management issues are involved, we from our business activities by enhancing our environmental Indonesian parliament members visited and inspected the because these areas have the biggest impacts among the provide services to many top global corporations with our management systems. leading-edge solutions and abundant expertise. forest, and highly praised the project, saying it could be a environmental burdens generated by our business activities. model of reforestation in other regions. ISO140001 certification and maintenance We constantly reduce environmental burdens by curbing the increase of special factors such as site relocation and With coverage of all the headquarters of 7 Group system integration. Japan Business Initiative for Biodiversity companies*, ISO14001 certification is acquired and activities are conducted to keep this certification. At each Change from the As the chair company, MSI has supported the activities of the Fiscal 2013 Fiscal 2012 previous fiscal year Japan Business Initiative for Conservation and Sustainable Use site of each company, we are promoting environmental of Biodiversity (JBIB) since its establishment (April 2008). The and social contribution activities with the entire Group Electricity 168,269MWh 166,109MWh 1.3% activities of JBIB were referred to in the "National Biodiversity based on our unique management system "OUR EARTH Strategy of Japan 2012-2020" and is highly regarded as one of Project." Gasoline 7,126kl 7,437kl ▲4.2% the bodies with which the government should pursue further (*) MS&AD Holdings, MSI, ADI, Mitsui Direct General, MSI Aioi Harvesting work during training of Education program Paper 15,969t 14,445t 10.6% collaboration and cooperation. agricultural techniques Life, MSI Primary Life, InterRisk Research ＆ Consulting

9 CSR Report 2014 CSR Report 2014 10 Pillar of CSR Initiatives II Contributing to Creating a Safe and Secure Society

Under the our Mission of providing security and safety through the global insurance and financial service business, the entire Group has made efforts to prepare for a wide range of risks such as sup- porting disaster prevention and mitigation measures, and reducing traffic accidents.

Supporting Preparation for Large-Scale Disasters Initiatives to Reduce Traffic Accidents The MS&AD Insurance Group is preparing a company-wide Support for implementing corporate earthquake Providing an application for accident prevention Provision of automobile risk management insurance payment scheme to fulfill our mission as an insurance company of paying insurance claims as soon as countermeasures and Business Continuity Plans (BCPs) and disaster preparation services to corporate customers possible to customers affected by disaster. Measures include The MS&AD Insurance Group is actively engaged in advisory services for MSI and ADI provide free applications In addition to preventing economic loss and cost cutting, it is a setting up local disaster-response rooms and dispatching mitigating earthquake and tsunami damage, and formulating Business for smartphones. pressing issue for companies to prevent and decrease traffic additional support staff to the field for when a large scale Continuity Plans (BCPs). Operational drills with disaster scenarios are also MSI offers "SumaHo," which can be accidents from the viewpoint of CSR. MSI, ADI, and InterRisk

Pillar of CSR Initiatives II Contributing to Creating a Safe and Secure Society Secure and Safe a Creating to Contributing II Initiatives CSR of Pillar disaster occurs. We also consider supporting the mitigation supported in an effort to "contribute to the creation of a flexible and robust used to check and change customers’ Research Institute & Consulting provide to corporate customersSociety Secure and Safe a Creating to Contributing II Initiatives CSR of Pillar of damages from disasters and preparation for early society from the prevention and mitigation of disasters to business continuity.” In policies and provides "Emergency various effective programs and solutions to prevent and restoration as our social responsibility. 2013, a new tool to support the formulation of corporate BCPs was released. We Navigation" that is useful at the time of decrease accidents. were also involved in the formulation of the BCP formulation support tool, the an accident or a breakdown and the "Miyagi Corporate BCP Formulation Guideline" for Miyagi Prefecture. "Driving Capability Spreading earthquake insurance In recognition of our knowledge and experience related to Business Continuity diagnosis" that Education for Traffic Accident Prevention After the Great East Japan Earthquake, we received many Management (BCM) and our activities spreading public awareness that we provides advice (Thailand) opinions ("it was really good to have joined earthquake have conducted so far, an employee of InterRisk Research Institute & Consulting based on the MSI Thailand insurance") from disaster victims at the time of payment of won the "BCI Asia Award *" as the first Japanese individual to receive this award. analysis and branch is insurance. MSI and ADI rediscovered the importance of We will keep on providing valid and useful information on how to cope with the diagnosis of your promoting customers understanding the necessity and the contents of pressing issues of BCP measures. driving abilities. SumaHo "Contribution of earthquake insurance correctly. We are advancing activities to ADI offers "Sapo Helmets for spread earthquake insurance to many people. (*) An award hosted by an international NPO "BCI (The Business NAVI," which has the driving diagnostic Students and Continuity Institute)" which spreads and raises BCM awareness function that analyzes and diagnoses Enlightening individual driving abilities, and provides Accident advice. It also has the function that notifies Prevention" and Support for Sustainable Development of Small and Medium-sized Companies points on the route to the destination "Anti-drunk where accidents frequently occur. Driving Charity" For many companies, overseas expansion is a critical business Sapo NAVI every year to strategy issue. For example, shrinking domestic markets are Support for the Reconstruction after the contribute to the prevention of traffic accidents in the triggering expansions into overseas markets, and increasing Great East Japan Earthquake local region. In FY2013, a driving seminar for elementary overseas operations is requiring special measures as a supplier, MUJICOLOGY! Project school students was held in Samut Prakan, and 3,000 Toward a quick recovery of the disaster-afflicted areas, the MS&AD Mitsui Direct General invited Professor Katsuhiro Nishinari, the helmets for students were donated. requiring diversifying risk factors such as considering natural Insurance Group has conducted activities, such as quick payments disasters when locating production sites. The MS&AD Insurance University of Tokyo, Research Center for Advanced Science In the Anti-Drunk Driving Charity, a competition for video of earthquake insurance claims, donation of relief money, and and Technology, as the president of clips on the elimination of drunk driving was held for college Group provides products and services in preparation for various volunteer activities. risks arising from expanding operations overseas. the "MUJICOLOGY! Laboratory" center students. These videos were used for the anti-drunk driving As the stage shifts from recovery to reconstruction, MSI has worked for disseminating information, which is campaign. on various support activities in collaboration with local governments. a part of the "MUJICOLOGY! Project," Supporting small and medium-sized Specifically, we participate in the "Regional Recovery Matching a campaign aiming to achieve a car companies to expand overseas operations 'Yui-no-Ba Activities'," which is sponsored by the Recovery Agency as society without accidents. In addition, Safety campaign at school (Taiwan) As a company that provides small and medium-sized companies a partner company, and we support the spread of corporate BCPs lecture videos on "jamology" were Mingtai a high level of expertise based on the June 2013 "Act on Support for as well as the market and overseas expansion of companies. released, and a symposium was also Insurance, MSI's Strengthening Management Functions for SMEs," MSI was the first held. Original characters local entity in insurance company to be certified as a "supporting organization "Mujicoro" and "Mujicorin" Taiwan, held for management innovation." MSI holds a "seminar on overseas the events as expansion" and a "seminar for advancing into Asian emerging Support for a safe and secure bicycle lifestyle shown below economies" on a regular basis in collaboration with financial institutes, With the recent increase in serious accidents caused by for the purpose local governments, and other entities, in order to support small and My Value bicycles and the court decision that called for heavy of improving medium-sized companies to expand overseas operations. reparations, there is a growing social need for insurance safety and In addition, we provide appropriate advice regarding local risk policies. In response to this, MSI has released the insurance for preventing risks management and general matters about insurance using our Yukitaka Sakamoto bicycles, which can be filled out online. In addition, MSI made on campus overseas network, which includes 39 countries. This is done through Manager, Reconstruction booklets and a website that compiles the safety rules and for schools the "SMEs' Overseas Development Fastpass" system, which we were Promotion Section, driving manners that cyclists should observe, to deliver safety (kindergarten - certified as a supporting organization by Japan's Ministry of Economy, Tohoku Division and security to our customers. high school) all over Taiwan, which were implemented Trade, and Industry. MSI ADI has continued to conduct the "Awareness campaign for in continuation from FY2012. preventing bicycle accidents" together with the Tokyo Insurance for Overseas Crisis Management Expenses (joint development) While starting with approaches such as donation of relief metropolitan government, police offices, and other ○ To provide an opportunity to improve safety consciousness MSI and ADI jointly developed Insurance for Overseas Crisis money, volunteer activities, and other activities shortly after autonomous bodies since 2011. In FY2013, where there are a lot regarding school life, musical theaters were performed Management Expenses for small- and medium-sized companies the disaster, MSI believes that, in order to continue to support of bicycle users in the tokyo metropolitan area, such as in front at 22 elementary schools. The number of audiences expanding overseas operations. This product covers expenses the reconstruction of the devastated areas in the long of train stations, we handed out leaflets on safety rules and amounted to 7,800 combining parents and students, incurred by the company for emergency evacuations of their term, it is necessary to work not only from the viewpoint of examples of accidents related to bicycles, appealing for the exceeding 11,000 including the number in 2012. social contribution, but also as a part of the local economic employees and continuing business in overseas emergency situations importance of safe bicycle riding. ○ To raise safety awareness, edited DVDs were delivered such as wars, terrorist attacks, and natural disasters. The product activities. We will sincerely address the reconstruction of the as educational materials to elementary schools all over comprehensively covers risks which had been ineligible for coverage devastated areas for many years to come, in cooperation with local governments and other companies. Taiwan. so quick decisions can be made during emergencies. 11 CSR Report 2014 CSR Report 2014 12 Pillar of CSR Initiatives II To Resolve Issues of Local Community

As a member of society and to contribute to its sustainable development, we will ad- vance initiatives through our insurance and finance business, while continuing our activi- ties to solve local community issues with our environmental conservation activities lead by our employees and our contributions to local communities.

Supporting a Healthy and Enriched Life Approaches for Preserving Biodiversity

Providing medical information and Activities of sending vaccines MS&AD Insurance Group is involved in consulting services for Tropical rainforests recovery companies regarding biodiversity conservation as well as In the world, a lot of children At MSI and ADI, activites such as Eco insurance certificates and awareness-spreading activities volunteering activities and tree planting activities by employees. die of infections that can only Web policy clauses that helps reduce paper use are leading to In addition to providing excellent primary insurance contracts be prevented with vaccines. the recovery of tropical rainforests in asia. We also are restoring that allows short- to long-term hospitalization, MSI Aioi Life One of the U.N. Millennium "MS&AD Ramsar Supporters" wild animal protection forests in Indonesia and are planting released the "New Medical Insurance A (Ace)" in 2013, which Development Goals is to As a part of biodiversity conservation activities of Ramsar trees in the Philippines. allows the selection of special contracts based on customer decrease the death rate of Convention registered wetlands, we conduct volunteer needs, such as lump-sum insurance payments for cancer or children under five years old to activities by employees and their families and biological one of the other three main diseases, or insurance for doctor one third of the level in 1990 by Pillar of CSR Initiatives II To Resolve Issues of Local Community Local of Issues Resolve To II Initiatives CSR of Pillar assessments at eight locations around the country. In addition, Community Local of Issues Resolve To II Initiatives CSR of Pillar visits needed for cancer treatments. In addition, it is a part of 2015. from January 2014, we have created an education program our social mission to inform people about healthcare, which is With the fervent wish to cherish ©JCV for spreading awareness to the next generation and began evolving everyday. To achieve this, we are proactive in hosting and sustain "life" ever into the future, MSI Aioi Life has launched traveling lectures at elementary schools. seminars on leading medical practices, distributing booklets, a campaign to donate funds in the sum corresponding to My Value and disseminating information through our Website. the number of newly contracted "&Life" brand of insurance In addition, MSI Aioi Life promotes the "Cerebral Stroke Project" products to the "Japan Committee Vaccines for the World's to increase the awareness of cerebral stroke prevention in Children (JCV)", a certified NPO incorporation, to defray the collaboration with the Japan Stroke Association. purchase cost of vaccine, etc. In fiscal 2013, the corresponding Yoshinori Yasumoto number of new contracts amounted to the donation of 131,000 Manager, Corporate people equivalent of polio vaccines. Planning Department Provision of insurance corresponding to MS&AD Holdings the super-aged society Creation of employment in rural areas (India) Cholamandalam MS General Insurance Company Limited, Traveling lecture Biological assessments We participated in the Ramsar Supporter In Japan, one in three people are activities at Yatsu-higata. My sons observed expected be elderly by 2035. In order a local subsidiary of MSI in India, planned two years ago to creatures with many participants from group to meet the needs of preparing for entrust the issuance of insurance policies in rural areas to Transmitting information from "ECOM Surugadai" companies, and observed them doing clean-up retirement funds and asset building a NGO, to create employment opportunities for residents The public environmental communication space "ECOM Surugadai" activities. My sons really enjoyed the event, with the arrival of a super-aged in rural areas where there are no job opportunities other was opened in May 2012. This saying "I want to do it again!" society, MSI Primary Life serialized the than agriculture. As a result of education conducted space has the role of transmitting Currently, the Group is moving forward with an foreign-currency-denominated fixed continuously about topics from insurance products to information to the community unprecedented business model "Reorganization English lessons, approximately 180 staffs are presently about the surrounding green by Function". Through daily work and participating whole-life insurance "Shiawase Zutto," in activities like this, I would like to help strengthen and sells "Tanoshimi Zutto." It meets the engaged in issuing insurance policies for automobile spaces, and hosting events. insurance and individual medical insurance. They issue the Group's teamwork skills and take on needs of wanting to use the increased In addition, with the theme of challenges together. amount for yourself while still leaving a about 600,000 policies annually. urban biodiversity for urban future behind for your family. development, it conducts activities in cooperation with local governments and universities. ECOM Surugadai Social Contribution Activities by Employees

Each one of our employees conducts a range of activities MS&AD Unison Smile Club Community contribution activities around the country domestically and internationally, while they think about At the MS&AD Insurance Group, employees who At each company of the MS&AD Insurance Group, community contribution activities are conducted that what can be done and what kind of activities would support an activity donate ￥100 apiece from their meet the local needs at each site around the country. At overseas local subsidiaries, we also actively conduct be useful to our lives, to the areas where we operate our salary to NPOs, to social contribution programs by environmental protection and philanthropic activites. business, and to society. branch departments, to host charity events, Group Disaster Relief and to send knitted The MS&AD Insurance Group has the "Disaster Relief goods to children Matching Gift System" where the Group donates on top of living in the mountain the relief money donated by employees for disaster victims. regions of Vietnam. In fiscal 2013, with the Shimane and Yamaguchi prefectures The number of the heavy rain disaster in July, the Philippines Typhoon Haiyan in participants in the November, and the nine domestic and overseas disaster whole Group was cases, a total of ￥37,250,000 of relief money was donated about 17,886 as of the from 18,086 employees combined with the additional end of March, 2014. "Let’s present knitted goods to MSI ADI MSI Aioi Life Mitsui Sumitomo Insurance company donation. children around the world" project Cleaning activites and biodiversity Traffic safety awareness activity in Flowerbed and greenspace (London Management) Ltd, the UK learning and surveying at the Hyogo front of Shibuya Station in Tokyo cultivaiton activities at the Zoorasia local subsidiary for MSI Prefecture Koshien Seaside Park. Yokohama Zoological Gardens The CSR working group

13 CSR Report 2014 CSR Report 2014 14 Respect for Human Rights and Growth of Employees 16 2.12% 2.73% 2.02% 2.08% 2.08% 2.08% CSR Report 2014 My Value Ishida Tomoko Manager, Tokyo Kita Branch ADI for growth was limited when continuing to do only from my colleagues, I have continued to take on to support others who challenge themselves. challenge who others support to When challenging a new field, it is necessary to getting promoted to section manager. With support With manager. section to promoted getting challenges whilepreparing myself do so to without experience own my use to like would I complaining. administrative work, I challenged myself, such as be prepared. Feeling anxious that my potential by transferring to sales from the back-office and work hours and overtime work overtime and hours work caused by sexual harrassment, power harrassment, and and harrassment, power harrassment, sexual by caused harassments of types other Employee mental, physical, health and other issues, Any matters Any working related to environment, such as Any matters related to non-compliance to related matters Any The following matters are subject to the reporting system. reporting the to subject are matters following The MSI ADI Mitsui Direct General MSI Aioi Life MSI Primary Life Domestic Group insurance companies Employment rate of people with disabilities Reporting System from System conduct Reporting unethical and unfair illegal, prevent to order In Group Insurance MS&AD the spread, directly and can neglected being employees that system reporting the a place recognize in has promptly can company the so through report measures. necessary take and facts ○ ○ ○ The MS&AD Insurance Group companies continue to engage disabilities engage with to people of employment continue Employment of companies places Group anchor Insurance and MS&AD expand The to activities hiring in and workplaces disabilities. conditioning with also fulfilled are people They by disabled. the work companies for Group facilitate to domestic duties all law. by developing 2013, fiscal required of end (2.00%) the At rate employment minimum the elderly the for Employment program The Theage. MS&AD Insuranceretirement Group has a rehiringreached have program who for so employees hours work and are options allowsdays, from. work employees to continueSeveral working choose skills. exercising and of theirto talentsexperience by their number applying available types, are job by patterns offered working of variety a that ） ） ） ） ） 1 6 10 （ （ 159 120 （ （ （ 4.4% 2.9% 1.8% 2.1% 6.7% ） ） ） ） ） 3 1 10 90 141 （ （ （ （ （ Fiscal 2012 Fiscal 2013 2.1% 4.0% 1.8% 1.2% 6.4% Joint declaration Respect for human rights human for Respect diversity of Promotion knowledge and provide opportunities to broaden our field of of field our broaden to opportunities provide and knowledge vision. measures to assist ambitious employees to continue working working continue to employees ambitious assist to measures commitments. life other meeting while we will foster an environment that encourages women to challenges. take In support of career development, we will enhance our In support of balancing our work with life, we will implement implement will we life, with work our balancing supportof In In support of creating a productive workplace atmosphere, atmosphere, workplace productive a creating supportof In We will actively work to realize the vision of the Next Challenge Challenge Next the of vision the realize to ourselves. work actively will limiting We without growth new our for aiming 2017, ① ② ③ MSI ADI Mitsui Direct General MSI Aioi Life MSI Primary Life Share of management positions occupied women by (figures in parentheses indicate number of persons) Diversity Management Selection 100 "2013 in prize a won ADI DiversityManagement Selection 100" hosted by the MinistryEconomy, Trade and Industry,in recognition of of itspromoting initiatives diversityand the role of female employees. Promoting the role of females of role the Promoting The MS&AD Insurancetraditional beyond Grouproles their considersexpand to employees it importantfemale for 2011, In companies. of growth sustained the for boundaries of role the promoting for declaration joint the instituted we buildsupporting their are and to them employees female careers. The MS&AD Insurance Groupsupporting the conducts by company, a as rights human activities respecting to on signing whilethrough Rights Human of Declaration Universal Compact. Global UN the rights human on Training and rights human about understanding furtherdeepen To about wareness foster to and responsibility social corporate respecting In rights. employees human all regarding training humanfor awareness conducting training workplace rights,provided we 2013, eachfiscal group companywith commonis training at routine daily during the harassment power "considering materials under workplace". thethe theme of In order to promote the Group management consciousness consciousness management Group the promote to order In about global environmental changes, it is importantdiverse with individual abilitiesemployees of the combine to values. The MS&AD Insurance Group gives all ambitious their demonstrate and grow to opportunity the employees work. their through talents My Value Hosaka Atsushi Manager, Claims Section, Policyholder Services Department. MSI Primary Life why I work on revising claim documents Administration department of MSI Aioi Life. Life. Aioi MSI of department Administration hearcustomers saying "procedures often AsI first priority. In order to reassure and satisfy customers. to respond sincerely to mind in for life insurance claim are difficult." This is illustrations,experiences whilemy referring to customers regarding insurance claims, which insurance customersregarding are apt be to considered difficult, I willkeep and preparing a claim support guide with at the company and giving customers participated in the training at the Claims Using the Group's Trainee System, I Supporting challenges Supporting Trainee system Domestic Group insurance companies have the Trainee System, which enables employees to have a short-term experiencein roles of experiencedthey not have before and workplacesother of work the understand they haveemployees help anwe interestprogram company. in.another Through of work thisthe or divisions In-house application system system. application In-house provide Life Aioi MSI ADI, MSI, of career-building of support the for contributes system This have and spirit challenging strong a have who employees current their in achievement of amount certain a recorded position. The MS&AD Insurance Group conducs an opinion poll every every poll opinion an conducs Group Insurance MS&AD The yearfor all employees in the Group spread to awareness to as well as Mission, VisionGroup's Values, and the about of one as implemented checkwhether is employee growth poll and work motivation the is of result The realized. being initiatives. CSR our for KPIs the Employee opinion poll opinion Employee Commendation ceremony employees theof Group ten companies one-daygroup training session for all new Development of human assets human of Development The MS&AD Insurancebedding Group'sa ascorporate professionals "Next strategies,Challengeculture and where 2017",which developing positionsemployeeswe will work human"em- take on as assets"on our challenges duty. as one of its basic Respect for Human Rights and Growth of Employees of Growth and Rights Human for Respect

MSI was highly recognized Award for Companiesrecognized Providing Career Support in 2013 highly was MSI voluntar of support its for and development career "Award the awarded was Providing for Companies 2013" for in Support Career the the firstby industry insurance time in Labor theHealth, of Ministry Welfare. and Innovation of employee roles employee of Innovation enhanceTo employees, roleinovation and human asset We All" initiative for "Be Professional the has MSI initiative. development, Roles" Individual of are "Innovation we the and has ADI and challenges new on take that employees support women. of success the to leading also Developing global human assets human global Developing support can that assets human develop and to ADI, and MSI At overseas have we business, our of expansion global the external dispatching also we these, traininglike assets human of programs.foundation the expand In addition, to training. group conduct overseas at Furthermore,experience work gain MSI can has work thegain Globalcan employees Traineebases Japanese Systemoverseas whereof employees local and bases Japan. in experience Education and training and Education various offer companies insurance sessions Group training Domestic including self-education, for employees assist opportunities to courses, correspondence external and self-directed their with and learning fiscal In development. a held we 2014, training group one-day new all for session 10 the of employees an in companies Group of sense a foster to effort Group among unity employees. (*) OJT: On the Job Training Job the On OJT: (*) The MS&AD Insurance Group envisions the ideal employee to to employee ideal the envisions Group Insurance MS&AD The be "Employees who learn and think by themselves, take up challenges, andand continueprofessionals as work educate to employees for we companies, insurance jobs, their towith grow."satisfied are Atand domesticpride feel that Group support staff"Self-education." through measures including "OJT*" and CSR Report 2014 15 Respect for Human Rights and Growth of Employees Achievement of work-life balance Outline of MS&AD Insurance Group The MS&AD Insurance Group values the diverse outlooks on Innovation of work styles values of employees, so we are enhancing the work MSI considers it to be important to encourage their environment and support measures so employees can work Company Data employees to go home early for the improvement of (As of March 31, 2014) energetically and experience job satisfaction and growth, work-life balance and help them increase productivity while striking a good balance between work and life. during limited hours. Corporate MS&AD Insurance Group Holdings, Inc. Number of 265 (Consolidated number Name Support of employees raising children To enable compatibility between innovation of work and Employees employees: 37,055) work styles and improve productivity, ADI is striving to Date The MS&AD innovate the role of each employee. Apr. 1, 2008 1. Management of non-life and life insur- Insurance Group Established (Name changed on Apr. 1, 2010) ance companies and companies provides various Business qualified to become subsidiaries Paid-in Description under Insurance Business Act. supporting systems 100,000,000,000 yen for employees Capital 2. Any business associated with the above. raising children.To make it easier for 27-2, Shinkawa 2-chome, Chuo-ku, Tokyo, Stock Listing Tokyo Stock Exchange (First Section) female employees My Value Headquarters Japan Nagoya Stock Exchange (First Section) who are going to (Effective after October 1, 2014) URL www.ms-ad-hd.com/en give birth to take Mariko Mita childcare leave, MSI, Deputy Manager, Mitsui Direct Medical Underwriting General, MSI Aioi Section Underwriting The in-house day-care center for children Life, and MSI Primary Department Life have implemented a system where substitutes are MSI Aioi Life assigned. In addition, MSI and ADI also hold seminars that Business Development Structure assist the smooth return to work for employees after they Presently, I work while raising a child by

Respect for Human Rights and Growth of Employees of Growth and Rights Human for Respect We will pursue group synergies by combining our MS&AD Holdings is a listed holding company with five directly invested have taken child care leave. using the shorter working hour system. While comprehensive strengths to provide high-quality Group insurance companies in Japan: Mitsui Sumitomo Insurance Co., We also prepare shorter working hours and flextime systeme it felt difficult to execute duties efficiently products and services that meet the needs of Ltd. (MSI), Aioi Nissay Dowa Insurance Co., Ltd.(ADI), Mitsui Direct better than required by law for employees that have within the prescribed working hours, I individual customers. General Insurance Co., Ltd. (Mitsui Direct General), Mitsui Sumitomo

have received the cooperation from all Group Insurance MS&AD of Outline returned to work. Furthermore, from April 2013, we have Aioi Life Insurance Co., Ltd. (MSI Aioi Life) and Mitsui Sumitomo Primary expanded the scope of eligible users of the in-house the members of my department including the support staff, who are aware of the Domestic Non-life Life Insurance Co., Ltd. (MSI Primary Life); and seven affiliated day-care center at ADI, allowing employees of the four Insurance Business necessity of mutual support. This is why I operating companies: InterRisk Research Institute & Consulting, Inc., companies ADI, MSI, MSI Aioi Life, and Mitsui Direct General really feel the value and preciousness of MS&AD Business Support Co., Ltd., MS&AD Staffing Service Co., Ltd., to use it. teamwork every day. I will work hard on MS&AD Systems Co., Ltd., MS&AD Business Service Co., Ltd., MS&AD my day-to-day duties, so that I will become Domestic Life Insurance Research Institute Co., Ltd. and ANSHIN DIAL Co., Ltd. able to support other members in the future. Elderly care support Overseas Business (as of July 1, 2014) Business Group Organization Chart We have in place a system which supports employees to continue work while caring for a family member. MSI and Mitsui Sumitomo Insurance Co., Ltd. MSI Aioi Life provide leave for nursing relatives and Aioi Nissay Dowa Insurance Co., Ltd. temporary retirement for nursing. In addition to leave for Implementation of Family Day Mitsui Direct General Insurance Co., Ltd. nursing and temporary retirement for nursing, ADI has MS&AD Insurance Group provisions for shorter hours for nursing, and also has a (Company tour for family) MS&AD Insurance Group Mitsui Sumitomo Aioi Life Insurance Co., Ltd. provision to rehire employees who retired for nursing reasons. Holdings, Inc. MSI holds Family Day, where families who support our Mitsui Sumitomo Primary Life Insurance Co., Ltd. Actual use of child-support program, employees are invited to the workplace, in order to care support program in fiscal 2013 deepen their understanding about the company and Directly invested affiliated operating companies (figure for fiscal 2012 in parentheses) the workplace, and for the children to learn about hte Risk-Related importance of work. By increasing communication at the Financial Services ・InterRisk Research Institute & Consulting, Inc. Temporary Childcare, Nursing Temporary workplace, this event has led to the creation of a more lively Services Business Business ・MS&AD Business Support Co., Ltd. Leave for Provisions for Leave and active working environment. ・MS&AD Staffing Service Co., Ltd. Childcare Shorter Hours, etc. for Nursing ・MS&AD Systems Co., Ltd. MS&AD Business Service Co., Ltd. MSI 244 239 185 153 4 5 ・ （ ） （ ） （ ） ・MS&AD Research Institute Co., Ltd. ・ANSHIN DIAL Co., Ltd. ADI 267（206） 309（242） 8（8）

MSI Aioi Life 25（ 19） 27 （ 14） 2（1）

Fiscal 2013 Key Financial Data Net premiums written by Insurance Category Exchanging name cards for Visiting parent's workplace Safeguarding employees' health the first time (consolidated data) ¥2,811.6 bn Outline of consolidated financial statements (million yen) Other Voluntary ¥357.4 bn 12.7% Automobile The MS&AD Insurance Group aims to create a workplace Mental health of employees Fiscal 2013 Fiscal 2012 ¥1,393.1 bn 49.5% where all employees can work lively with good physical and Marine With the cooperation between the health management Net premiums written(*) 2,811,611 2,639,015 ¥97.0 bn 3.5% mental health. centers and employee consultation offices, MSI is assisting Ordinary profit / loss(∆) 190,259 150,300 Personal Accident with quick recovery in mind. ¥227.5 bn 8.1% Total Health management of employees ADI is undertaking prevention activities through training as Net income / loss(∆) 93,451 83,625 ¥2,811.6 bn We operate a Group-unified medical checkup system that well as establishing an internal and external contact point to enables group employees to get health check-ups and build a system where employees can seek consultation Net assets 2,285,832 2,021,625 Compulsory without worry. We also provide consultation to employees Automobile Liability results no matter where they are employed. For the Total assets 16,878,148 15,914,663 ¥338.2 bn 12.0% employees who need a follow-up health check, the welfare under treatment, to support employees returning to work Fire and Allied guidance by industrial doctors and nurses are provided at and to employees after they return to work. (*) Key sales item of non-life insurance business, which is our core ¥398.1 bn 14.2% each company’s health management departments. business within the Group.

17 CSR Report 2014 CSR Report 2014 18 www.ms-ad-hd.com

27-2, Shinkawa 2-chome, Chuo-ku, Tokyo, Japan

Contact details Corporate Social Responsibility Section, Corporate Planning Dept. TEL：+81-3-5117-0306 / FAX：+81-3-5117-0602 Mail：[email protected]