GIAJ Chairman's Statement (Summary) released on June 21, 2007 (June 21, 2007

I would like to report and comment on our activities, which have been implemented in the last ten months.

Mr. Kunio Ishihara, Chairman
Mr. Kunio Ishihara, Chairman

In November 2005, the Financial Services Agency (FSA) issued administrative orders to a number of our member companies due to certain inadvertent non-payment of claims, especially in the area of automobile insurance. Taking this situation seriously, I took office as Chairman of the General Insurance Association of Japan (GIAJ) in September 2006, with the firm commitment to devoting myself to restoring confidence in the industry, and making these restorative efforts a top priority.

Specifically, we have recommitted ourselves to the fundamentals of our industry. These fundamentals include respecting and listening carefully to our consumers and responding to them quickly and effectively, as well as maintaining a system that ensures compliance where each member company addresses issues proactively in order to achieve swift resolution. In setting these fundamentals as our basic policy, we believe that we are making steady progress toward solving our shared issues.

Throughout the last 10 months we have focused our efforts consistently on the restoration of customer confidence. We have addressed inappropriate non-payment of claims in 3rd sector insurance, and while doing so we have also addressed improper underwriting practices in the area of fire insurance which we discovered while responding to the above-mentioned issues.

So far, our activities involve reviewing our whole business process, from binding insurance contracts to the payment of claims, and I believe that we have made progress in reinforcing core business processes common to all market players. In order to rebuild and maintain consumer confidence, however, each member company must make continuous efforts toward maintaining a high level of customer service.

Accordingly, I believe that the insurance industry in general should accelerate its efforts toward restoring consumer confidence.

The following are the main consumer confidence initiatives we have implemented since I assumed the role of Chairman of the GIAJ:

(1) Review of industry operations with a consistent focus on our consumers' needs

i. Establishing and maintaining the "Advisory Panel to Listen to Consumers' Voices", with third party experts maintaining the majority.

ii. Establishment of a system to integrate, analyze and assess the needs of all of our customers.

iii. Establishment of a system to listen to consumers' opinions more proactively

(2) Response in consideration of consumers' voices

i. Promoting the publicity of the "General Insurance Buyers' Guide"

ii. Making the "Guideline on Description of Solicitations Materials"

iii. Reviewing the examination system for general insurance agents

iv. Discussing the understandability of insurance products and policy conditions

(3) Reinforcing Compliance

i. Strengthening the functions of the Compliance Committee

ii. Establishing the "Self-Imposed Guideline on Payments for Insurance Claims"

iii. Establishing the "Compliance Guide for Solicitation"

(4) Others

i. Implementing internal investigations to ensure appropriate underwriting

ii. Responding to the "Suitability Rule"

General insurance covers all kinds of risks in our society and should provide due and proper payment when a covered loss occurs, thus contributing to social stability and economic growth. While I am confident that our industry strives to provide such stability and growth, I deeply regret that recent events have eroded customer confidence in our industry.

We, the GIAJ, are determined to play our "social role" of ensuring the general safety of citizens, social stability and economic growth by providing reliable insurance products, and thus achieving full recovery of confidence in our industry.

We would highly appreciate your continuous support and guidance.