Insurance Benefit and Business Continuity Risks from Large-Scale Disasters and Infectious Diseases
First written in FY2016. 7 of 14 entries say "Restated". Latest entry: FY2024-Q2.
Lifenet Insurance Company moved to the "Worse" side of this theme in 2022, 2 years after the typical company in this theme (2020).
The whole theme swung hardest in 2020: 4 of 9 companies on the "Worse" side.
1 other company's latest entry also says "Other".
- FY2024-Q2End of deemed hospitalization special treatmentAnnual report
「Because the special treatment of paying hospitalization benefits and other benefits to people diagnosed with COVID-19 who recuperated at accommodation facilities or at home under the supervision of a physician or other medical professional (hereinafter, “deemed hospitalization”) was ended on or after 8 May 2023, an appropriate amount cannot be calculated using the method prescribed in the main clause of Article 1, paragraph 1 of the Ministry of Finance Notification No. 234 of 1998 (hereinafter, the “IBNR Notification”). Accordingly, the amount calculated by the following method is recorded pursuant to the proviso to Article 1, paragraph 1 of the IBNR Notification.」
The company disclosed that the special treatment for deemed hospitalization and other arrangements relating to COVID-19 ended on or after 8 May 2023, and revised its method for calculating incurred but not reported reserves. - FY2023-Q3MaterialisedAnnual report
「Insurance claims and other payments were ¥9,137 million, up 148.0% year on year, mainly due to an increase in benefits relating to COVID-19 and higher reinsurance premiums under modified coinsurance reinsurance. Insurance claims and benefit payments as a percentage of premiums rose to 27.5% from 19.9% in the same period of the previous year. COVID-19-related insurance claims and benefit payments amounted to ¥1,326 million.」
The increase in COVID-19-related benefits was reflected in actual insurance claims and other payments, with COVID-19-related payments reaching ¥1,326 million. Insurance claims and benefit payments as a percentage of premiums also rose from 19.9% in the same period of the previous year to 27.5%. - FY2023-Q2MaterialisedAnnual report
「Insurance claims and other payments were ¥5,738 million, up 141.1% year on year, mainly due to an increase in benefits relating to COVID-19 and higher reinsurance premiums under modified coinsurance reinsurance. Insurance claims and benefit payments as a percentage of premiums rose to 25.8% from 21.0% in the same period of the previous year. COVID-19-related insurance claims and benefit payments amounted to ¥883 million.」
The increase in COVID-19-related benefits was reflected in actual insurance claims and other payments, with COVID-19-related payments reaching ¥883 million. Insurance claims and benefit payments as a percentage of premiums also rose from 21.0% in the same period of the previous year to 25.8%. - FY2023-Q1MaterialisedAnnual report
「Insurance claims and other payments were ¥2,821 million, up 148.0% year on year, mainly due to an increase in benefits relating to COVID-19 and higher reinsurance premiums under modified coinsurance reinsurance. Insurance claims and benefit payments as a percentage of premiums rose to 26.3% from 19.9% in the same period of the previous year. COVID-19-related insurance claims and benefit payments amounted to ¥278 million.」
The increase in COVID-19-related benefits was reflected in actual payments. COVID-19-related insurance claims and benefit payments amounted to ¥278 million, and payments as a percentage of premiums were 26.3%. - FY2022WorsenedAnnual report
「If a pandemic or a major disaster such as an earthquake, tsunami, terrorist attack or interstate conflict affects a densely populated area or a wide region, in addition to its impact on underwriting and liquidity risks, our business continuity may be affected and additional costs may arise because our officers, employees and other personnel or related personnel may be affected or infected, our facilities may be damaged, or external service providers may cease to function.」
The company expanded its description of major disaster and infectious disease risks to include interstate conflicts, impacts on officers, employees, facilities and external service providers, and additional costs. - FY2022-Q3RestatedAnnual report
「The lapse rate for the cumulative third quarter was 6.6% (5.6% in the same period of the previous year), including the impact of collectively recording as lapsed policies those contracts for which the premium payment grace period had been extended as part of the special measures relating to COVID-19.」
The impact of the special measures relating to COVID-19 continued to be reflected in the lapse rate through the recording of contracts with extended payment grace periods as lapsed policies. - FY2022-Q2RestatedAnnual report
「The lapse rate for the cumulative second quarter was 6.9% (5.5% in the same period of the previous year), including the impact of collectively recording as lapsed policies those contracts for which the premium payment grace period had been extended as part of the special measures relating to COVID-19.」
The impact of the special measures relating to COVID-19 continued to be reflected in the lapse rate through the recording of contracts with extended payment grace periods as lapsed policies. - FY2022-Q1RestatedAnnual report
「The lapse rate for the cumulative first quarter was 7.6% (5.5% in the same period of the previous year), including the impact of collectively recording as lapsed policies those contracts for which the premium payment grace period had been extended as part of the special measures relating to COVID-19.」
The impact of COVID-19 is reflected in the lapse rate through the recording as lapsed policies of contracts whose premium payment grace periods were extended. Although the impact of the infectious disease had already emerged, the quarterly report stated that there were no material changes to business and other risks. - FY2021-Q3RestatedAnnual report
「As the impact of the spread of COVID-19 remained uncertain, including the reissuance of a state of emergency in January 2021, we continued to monitor developments. At that point, its impact on insurance claims and benefits, asset management and business operations was limited.」
The company continued to monitor developments because the impact of COVID-19 remained uncertain, while it said the impact on insurance claims and benefits, asset management and business operations was limited at that point. - FY2021-Q2RestatedAnnual report
「Although the impact on insurance claims and benefits, asset management and business operations is currently limited, the impact of the infectious disease remains uncertain, and we will continue to monitor developments in our business operations.」
COVID-19 has actually affected new business, while the company said its impact on insurance claims and benefits, asset management and business operations was limited at that point. Uncertainty remains. - FY2021-Q1MaterialisedAnnual report
「New business increased in the cumulative first quarter, as described in “(1) Contract Status,” mainly because demand for life insurance rose amid the spread of COVID-19.」
The infectious disease previously identified as a risk actually occurred and affected new business. While the company said its impact on insurance claims and benefits, asset management and business operations was limited at that point, it continued to monitor developments. - FY2018RestatedAnnual report
「We have prepared a business continuity plan assuming that we may be affected by an earthquake or other event, but if a major disaster exceeding the assumptions of this plan occurs, our business operations may be seriously disrupted.」
In addition to the risk that benefits may exceed catastrophe reserves, the company continues to identify the risk of operational disruption caused by a disaster exceeding the assumptions of its business continuity plan. - FY2017RestatedAnnual report
「We set aside catastrophe reserves in accordance with the standards under the Insurance Business Act, but these reserves do not necessarily cover payments in the event of every major disaster, and insurance claims and benefits may exceed the catastrophe reserves.」
The company continues to identify the increased benefits and impact on business continuity from major disasters and infectious diseases, as well as the possibility that payments may exceed catastrophe reserves. - FY2016First statedAnnual report
「If a large number of deaths occur due to a pandemic such as novel influenza or a major disaster, including an earthquake, tsunami or terrorist attack, affecting densely populated areas such as Tokyo and Osaka, we may face the risk of incurring unpredictable liabilities relating to insurance benefits.」
The company indicated that major disasters could exceed the capacity of its catastrophe reserves and business continuity plan.