10 th June, 2013 Federation of Non-Life Insurance Workers’Unions of Japan (FNIU)

1. Improve the Reliability of Customers－The Role of Trade Unions in Promoting the Customer Oriented Business Model－～Approaches by FNIU and Non-Life Insurance Industry～ 10thJune, 2013 Federation of Non-Life Insurance Workers’Unions of Japan (FNIU)

2. Overview １．Introduction of FNIU ２．Current situation of Non-Life Insurance Industry ３．Review of business conduct with customer perspective ４．The other challenges FNIU faces

3. 1．About FNIU • Affiliates • 21 enterprise-based unions • Majority of the domestic non-life unions belong to us • Composed of unions of :non-life insurance, claim adjusting, information systems, business service, and life insurance • Memberships • Approximately 88,000 members • Male-female ratio of 50:50 • Approximately 1,000 members newly joined in this period

4. 2．Status of the Non-Life Insurance Industry • The following 4 holding companies take up a large portion of the market share of the industry • Many of FNIU’s affiliates are with their business companies • ＡＩＧJapan Holdings KK • MS&AD Insurance Group Holdings, Inc. • NKSJHoldings, Inc. • Tokio Marine Holdings, Inc.

5. Development in Industry Restructuring • Deregulation of insurance • Mutual entry between life and non-life • Deregulation of products and premium rates • Diversified sales channelsetc. • Group management by the holding companies • Slumping domestic market • Rash of large-scale natural disasters • Worsening (rising) auto insurance loss ratioetc.

6. ３. Reviewing Business Conductwith Customer Perspective Having industry standardized, and promoting business reduction and efficiency throughout the industry Making the industry more user-friendly Providing better service by improving job satisfaction for union members Realizing sound development of the industry and companies • Having industry standardized, and promoting business reduction and efficiency throughout the industry

7. Efforts by Non-Life Insurance Industry • Response to the Great East Japan Earth Quake • In order to improve the convenience for customers such as speedy payment of insurance claim, industry-wide efforts have been made as follows; • Introduction of common research and documentary assessment by different companies • Simplify the procedure of transfer • Commonalize the administrative forms in the industry Based on the visit experience to the affected areas in the aftermath of the Quake and the voices heard from each enterprise unions, FNIU also made a proposal to General Insurance Association of Japan to realize the above measure.

8. Efforts by Non-Life Insurance Industry General Insurance Association of Japan: 6th Midterm plan “Priority Agenda for next 3 years” “Improvement of customer convenience and business efficiency through prompting the industry-wide commonalization and standardization ” →　Remain under deliberation on concrete plan inside the association. FNIUAct as a check in regular consultation with each company’s managements.Have a better understanding of operation problem through the union of General Insurance Association of Japan which affiliates to FNIU.

9. Approaches by FNIU Voices from workplace We sort out issues from single workplace to industry-wide level through 50 more meetings in various places held every year. Policy proposal Approach PR・Feedback Every year we compile the opinions heard into a policy booklet in order to work on parties concerned stimulate the discussion within FNIU. In order to realize our policies, we outreach not only to industry groups but also various stakeholders such as consumer groups and Financial Service Agency to have dialogues • Convey opinions based on voices from workplace • Develop policy proposal 2013 • Outreach to various parts of the society: strengthen the external activity

10. ４．Other Challenges The holding companies’ business strategy for the groups might have a great impact on the employees Impact on employment and working conditions Building positive relations with local employees • Corporate merger • Business restructuring (company split, assignment of business) • Selling off unprofitable companies, withdrawal from unprofitable operations, etc. • Acquisition of foreign insurance company

11. Given the situation that technically no labor relations exist between pure holding company and business company’s workers, in order for the entire group to make sound development, what kind of relations should unions build with the pure holding companies?

12. What Unions Need To Do • To enhance cooperation with unions in the group • Sharing information (to identify the issues to address in the group) • Forming a coalition for the spring wage negotiations • Building organizational structure to cope with pure holding company • Liaising with overseas resident workers, workers on loan to overseas subsidiaries, and local unions • To organize unorganized workers • Supporting business companies in the group to found unions • Organizing unorganized workers • To build relations with holding companies • Starting with an unofficial labor-management meeting • Having the meetings continuously • Signing collective agreement (covering the entire group)

13. Thank you for your kind attention!