Progress of Social Security Card and e-P.O. Box in Japan Porvoo13 @ Beautiful Voyage

1. Progress of Social Security Cardand e-P.O. Box in JapanPorvoo13 @ Beautiful Voyage April 9, 2008 Hiroshi Shimada NICSS JAPAN

2. New pension management system plan • The ruling party agreed the introduction of Social Security Card • It is expected the card also serves as a pension booklet, health insurance card, and nursing care insurance card in each different entry age. • Health insurance for persons under 20, the pension for persons from 20 to 39, and the nursing care insurance for persons 40 or older. • Considering the health insurance card for example, the number of card is 110 million for people of age 10 or older. • One card per person is scheduled to be issued in 2011. • For security purpose, the card will be made of an Smart card. • Generally, the card will be multi-application. Sistem Informasi Asuransi dan Keuangan

3. Feature of multi-application card • Multiple service applications share an IC chip. • Separated logically Firewall • Started to be used practically as resident registration cards. • Triangular model consisting of a card issuer, card user, and service provider. • New service can be added to the card even after issued. • Service provider centric Sistem Informasi Asuransi dan Keuangan

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5. Advantage and disadvantage of multi-application card • Advantage • Since the card issuer controls the usage of the card, the card issuer can stop the card service at one time if necessary due to theft or loss. • One-stop service is possible. • User convenience increases considerably. • Disadvantage • It requires tight control to manage a free service area in the card and to add/delete service securely. • It is difficult to add/delete surface printing on the card. The trend toward multi-application card will result in multiple cards. Sistem Informasi Asuransi dan Keuangan

6. If social security card is used alone • The card will be multi-application because it works 3 roles: • Pension booklet • Health insurance card • Nursing care insurance card. as the 1st step of social security services. • Currently, the health insurance number and nursing care insurance number in each paper based card must be re-numbered in association with occupation change or house-moving. • Safe and secure rewriting requires high-level security in Smart card. • If it is possible to fix the health insurance number and nursing care insurancenumber throughout the life like the pension insurance number, renumbering may be eliminated but changing and updating expiry data and others is still required. Sistem Informasi Asuransi dan Keuangan

7. Current discussion for Social Security Card • 4 kinds of identifiers were proposed for individual identification: • Unified number that can be used in common with different systems. • Card identifier. • Current insurance number for each of the different systems. • Prepare and use a fixed number for each of the systems. • 4 personal information. (Name, birth date, gender, address) • 3 kinds of issuers were proposed: • Municipalities. • Health insurer. • Pension insurer. • Qualification management system of insurance Function requirement • Information to identify everyone in the country • Linkage with social security card and authentication method • Information required for each service • Pension: Recorded information (Month and year, standard monthly report, and amount of payment etc.) • Health insurance (Name of insurer, insurance number, and expiry etc. • Nursing care insurance (Name of insurer, insurance number, and level of care needed etc.) Sistem Informasi Asuransi dan Keuangan

8. Case Study How to tie the existing system with new eID? Case1: Qualification management system has personal identification number. Case2: Card has each insurance number. Case3: Personal identification number and each insurance number is linked in junction system. Case4: Not tie between eID and existing system. Which is the most realistic way in EU countries ? Sistem Informasi Asuransi dan Keuangan

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12. Current social status • Current social status • Increase of average life span and decrease of birthrate • Declining birthrate ⇒ Decreasing worker population ⇒ Revenue shortages • Aging ⇒ Increase in social security costs • Keep a balance between satisfaction and financial resource. • Establish a method to disclose individual information of a person to the person • e-P.O. Box (electronic Post-Office Box) Sistem Informasi Asuransi dan Keuangan

13. Introduction of e-P.O. Box (1) • Purpose • Disclosure of information on a person to the person by administrative and social security-related organization • Background • Proposed in the IT Strategy Headquarters of Dec. 2006. • Described in the Priority plan 2007, Large-boned policy of the government. • The support body will be established newly in the IT Strategy Headquarters; Cooperation by the Cabinet Secretariat, Ministry of Internal Affairs and Communications, and Ministry of Health, Labor and Welfare. • Basic policy will be decided in 2007, environmental arrangement will be made in 2008, and the e-P.O. Box will be implemented in 2010. Sistem Informasi Asuransi dan Keuangan

14. Introduction of e-P.O. Box (2) • Open a personal account in the cyberspace for every Japanese resident • Just like a bank account, Smart card will be used for a secure and easy access Good for the social acceptance • Convergence all services provided through the portal • e-Government services; One stop service • Social security status check; national pension, health insurance, employment insurance etc. • Healthcare; EHR for better preventive medicine Sistem Informasi Asuransi dan Keuangan

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16. e-P.O. Box consideration Cooperation between the social security card and the e-P.O. Box. • Disadvantages of the multi-application card can be overcome. • The social security card can be used as an ID card if it is designed as a single-application card (access card). • There arises a possibility to coexist with the resident registration card. (Both cards can be accessed from each other.) • Furthermore it is expected the card can be shared with private services. Sistem Informasi Asuransi dan Keuangan

17. The security of e-P.O. Box (1) • Securing confidentiality • All the personal information is sent after encryption. • Confidential communication • Personal information of a person can be decrypted only with the person's card. • The key used for decryption is stored in an Smart card with anti-tampering • capability. • Securing availability • Every information sent through a e-P.O. Box is written in a standard format. • You can access your e-P.O. Box from anywhere anytime. Sistem Informasi Asuransi dan Keuangan

18. The security of e-P.O. Box (2) • Securing completeness • Every information sent from a back office should bear an electronic signature • e-P.O. Box service providers authenticate the signatures. • Certificates, such as residence and tax certificates, are sent to e-P.O. Boxes electronically and can be used as original and certified copies. • Users can print certificates on a papers. Sistem Informasi Asuransi dan Keuangan

19. Key issues for social acceptance • Bank account for cash flow 1. Service provider is well trusted by holders 2. Account status could be checked by the holder at anytime 3. Use of the account is under the holder’s contro • e-P.O.Box for information flow • Just like the bank account + Additional functions • Additional functions: One stop service for e-Gov., Navigation of public services, Letter Box to send and receive confidential mails, Validity check of digital signature • Loose connections to the back offices Sistem Informasi Asuransi dan Keuangan

20. Summary (1) • Since the social security card serves as a health insurance card as well, more than 100 M card has been issued. • It is recommended to have the resident registration card and social security card coexist and to support access to the e-P.O. box by those cards as new e-ID Card through the use of public personal authentication service. • Since the foreigners who receives social security service are also targeted, cooperation of municipalities is indispensable. • Considering the improvement of card user convenience, security of safety, flexibility of the card management system, and expandability to the next e-government service; it is effective to utilize the concept of the e-P.O. Box. Sistem Informasi Asuransi dan Keuangan

21. Summary (2) • In order to implement the social security service (reading pension record and checking effectiveness of insurance certificate) at which the social security card aims, e-P.O. Box should be implemented as the basic functions. • Since the value of the e-P.O. Box service can be improved by private services, efforts should be made to realize the e-P.O. Box with a view to hybridization--basic service by the government and extended service by private services. • As an example of service in which residents take the lead by controlling the flow of information, this should be informed to all over the world. Sistem Informasi Asuransi dan Keuangan