〒103-0028　東京都中央区八重洲1-3-7　八重洲ファーストフィナンシャルビル

お問い合わせ先総合企画部　CSR推進室TEL ： 03-6202-5269／FAX ： 03-6202-6882 Mail ： aaa703_csr@ms-ad-hd.com

09198 15,000 2013.09　（新）

2013

森林管理協議会(Forest Steward-ship Council: FSC)によって認証された、適切に管理された森林の木材を原料とした用紙を使用しています。

Insurance Group

Digest Version

2013

TEL ： 03-6202-5269／FAX ： 03-6202-6882 Mail ： aaa703_csr@ms-ad-hd.com

Insurance Group Holdings, Inc.

Contact detailsCorporate Social Responsibility Section, Corporate Planning Dept.

Yaesu First Financial Building, Yaesu 1-3-7, Chuo-ku, Tokyo, Japan

This report is printed on paper made from lumber that has been sourced from forests certified as well managed by the Forest Stewardship Council (FSC).

President & CEO Toshiaki Egashira

July 2013

to make our CSR activities more transparent we have introduced KPI (Key Performance Indicators). We will return to the basics in fiscal 2013, under our 2 pillars of "Improvement of quality of products and services" and "Contribute to create the sustainable environment and society."

Fiscal 2013 is the year for the completion of our medium-term management plan, "New Frontier 2013," which we commenced at the founding of our Group. By achieving our medium-term management targets, we will further pursue sustainable growth and improve our corporate value. In addition, in January 2013, we announced the functional reorganization of our core non-life insurance business, Mitsui Sumitomo Insurance Co., Ltd. and Aioi Nissay Dowa Insur-ance Co., Ltd. Through this functional reorganization, we are striving to improve the corporate value across the entire Group, meet our customers’ diverse needs, and strengthen our Group’s governance by making each Group company’s business concepts clear and maximizing each of their strengths.

By combining the abilities of each employee and Group company with these core activities, we will make an effort to respond to the expectations of our various stakeholders. It is our sincere wish that we will continue to enjoy your continuing patronage.

Participation in the U.N. Global Compact The MS&AD Insurance Group, following the dec-laration of support of United Nations Global Compact in June, 2004, by MSI as the first finan-cial organization, will keep its active participation.

Signature to Principles for Sustainable InsuranceIn June, 2012, the United Nations Environment Program Finance Initiative (UNEP FI) published the "Principles for Sustainable Insur-ance", requiring insurance companies to consider in their busi-ness activities issues related to environment, society and gover-

Three years have passed since the founding of MS&AD Insur-ance Group in April, 2010. During these three years, such unprecedented large-scale natural disasters, as the Great East Japan Earthquake and the flood in Thailand have occurred one after another in Japan and around the world. Natural disasters such as these, provided us the opportunity for our Group to recognize again the importance of social responsibility as an insurance company to not only provide our customers prompt insurance payment to those afflicted, but also to aid their recovery.

Our Group has been active with its Corporate Social Respon-sibility under the management philosophy, "We contribute to the development of a vibrant society and help secure a sound future for the earth, by bringing security and safety through the global insurance and financial services business."

In fiscal 2012, we have reviewed our perspective of CSR, and

MS&AD Insurance Group issues CSR report every year so that stakeholders could understand our CSR activities.This Digest version is issued so that overall pictures of Group's CSR approaches and the outline could be more understandable. Please see the CSR report on the website about the details of each approach.● Implemented actions(main items) for achieving the social

responsibility that the MS&AD Insurance Group is required by stakeholders are reported by subject.

● The characteristic measures in each company of the MS&AD Insurance Group are reported. (Coverage of report is as follows)

CSR information Perspective　of disclosure

■ Subject Period　FY2012 (April 1, 2012 - March 31, 2013)* The report also includes some activities that began in April 2013 or later.

■ Publication October 2013

　Participation to initiatives

・FTSE4Good index series・Ethibel PIONEER and EXCELLENCE Investment Registers・Morningstar Socially Responsible Investment Index(MS-SRI)

Socially Responsible Investment(SRI) is a method of investing that assesses the company not only through profitability but from a viewpoint of Corporate Social Responsibility(CSR) and this practice is spreading. The MS&AD Insurance Group is utilizing the assessment provided by major SRI evaluation organizations to improve its approaches. As of July 2013, The MS&AD Insurance Group is inc luded in the fo l lowing components of SRI Index.

External Evaluation

Message from the President

nance and to play their roles in developing a sustainable environ-ment on earth.MSI has participated in its implementation and signed to endorse the principles.

Signature to Principles for Financial Action towards a Sustainable Society In October, 2011, "Principles for Financial Action towards a Sus-tainable Society (Principles for Financial Action for the 21st Cen-tury)" was published in Japan as the principles to provide behav-ioral guidelines for financial institutions desiring to play their required roles and responsibility in building sustainable societies.MSI, ADI, MSI Aioi Life and InterRisk Research Institute & Con-sulting have signed the principles.

■ Subject organization and abbreviationThe following is a list of abbreviations for the Group and its member companies.(Domestic Group insurance companies are indicated by asterisks.)

・MS&AD Insurance Group

・MS&AD Insurance Group Holdings, Inc.　⇒ MS&AD Holdings

・Mitsui Sumitomo Insurance Co., Ltd.　⇒ MSI*

・Aioi Nissay Dowa Insurance Co., Ltd.　⇒ ADI*

・Mitsui Direct General Insurance Co., Ltd.　⇒ Mitsui Direct General*

・Mitsui Sumitomo Aioi Life Insurance Co., Ltd.　⇒ MSI Aioi Life*

・Mitsui Sumitomo Primary Life Insurance Co., Ltd.　⇒ MSI Primary Life*

CSR Report 20131 CSR Report 2013 2

Contents

Growth with our agents

CSR in the MS&AD Insurance Group

Message fromthe President

Improvement of quality of products and services

Contribution to createthe sustainable society

Practice of values andgrowth of employees

Overseas approaches

Protection of global environment

Pillar of ApproachesⅠ

Pillar of ApproachesⅠ

Pillar of ApproachesⅡ

Pillar of ApproachesⅡ

Outline of MS&ADInsurance Group

1

3

5

8

9

11

13

16

18

Functional Reorganization

Scope of report

After the inauguration of MS&AD Insurance Group in April 2010, as the first step of the business integration, we merged Aioi Insurance Co., Ltd. with Nissay Dowa General Insurance Co., Ltd. and Mitsui Sumitomo Kirameki Life Insurance Co., Ltd. with Aioi Life Insurance Co., Ltd., and advanced the integration of our shared services to streamline Group management. With this context, as the second step of our business integration, functional reorganization around Mitsui Sumitomo Insurance Co., Ltd. and Aioi Nissay Dowa Insurance Co., Ltd. (the two core non-life insurance companies) is being considered.

■ Improve the corporate value across the entire Group:Realizing the entire Group's "growth" and "efficiency"

■ Meet our customers’ diverse needs:Maximizing the strengths of the two core non-life insurance companies

■ Strengthen our Group’s governance:Strengthening the governance system lead by the holding company

The Revised Insurance Business Act, which came into effect in April 2013, reviewed the regulations pertaining to insurance contract transfers and subcontracting insurance sales. This functional reorganization is a never before done style of reorganization that takes the regulatory review into account, and with the prior approval by relevant authorities, it is scheduled to be progressively executed following April 2014.

WebsitePDF of CSR report (Full version) and the Digest version is downloadable.Data related to CSR approaches is listed.

Reorganization of overseas businessBusiness operations integration of overseas subsidiaries

Transition to a third-sector long-term contractMitsui Sumitomo Aioi Life Insurance Co., Ltd.

Aggregation of Branches and sales networks, Joint use of branches

Reorganizing operations and sales channels

MS&AD Holdings

Mitsui Sumitomo

Insurance Co., Ltd.

Aioi Nissay D

owa

Insurance Co., Ltd.

【Functional Reorganization Conceptual Diagram】Some functions passed to the Head Office

Some functions passedto the Head Office

Hull Insurance, Cargo Insurance, Aviation InsuranceMotor channel distributor

Integrated Risk Management and Overseas Operations Control

Perspective of CSR approaches of the MS&AD Insurance Group

Pillars of CSR approaches (priority issues)

Key performance indicators (KPI) to promote our CSR approaches

We fulfill our corporate social responsibility to the stakeholders through all business activities. ●The approach is guided by Our Mission, Our Vision and Our Values.●Basic principles of the approach are corporate governance, compliance, risk management, information disclosure, respect for human rights and

environmental preservation.●Our stakeholders are our customers, shareholders, agents, business partners, employees, environments, and local /international communities.

We tackle the following 2 tasks as pillars of our fiscal 2013 CSR approaches.

The MS&AD Insurance Group introduced "KPI for the promotion of CSR approaches at the MS&AD Insurance Group" in three group companies, including MS&AD Holdings, MSI and ADI in fiscal 2012. In fiscal 2013, the

To contribute to the development of a vibrant society and help secure a sound future for the earth, by bringing security and safety through the global insurance and financial services business

●Strive to improve the quality of products and services at all times, and promote better business practices based on feedback from stakeholders, thereby earning trust

We will earn the trust of customers through the improvement of quality of products and services

●Promote social contributions and global environmental preservation through the provision of products and services●Conduct activities to support the restoration of areas hit by natural disasters, such

as the Great East Japan Earthquake, and promote social contribution activities tailored to local needs●Promote various solutions to environmental issues, such as reducing the envi-

ronmental burden relating to our business activities and conserving biodiversity

We will contribute to create the sustainable environment and society

Provide products and services that meet customers expectations for quality

Provide appropriate disclosure of information and appropriate returns to shareholders.Strive to raise corporate value

Maintain sound relationships and cooperate to fulfill corporate responsibility

Provide a comfortable environment, a sense of purpose, and opportunities to grow

As a member of society. contribute to its sustainable development

CSR in the M

S&AD Insurance G

roupCSR in the MS&AD Insurance Group

CSR in the MS&AD Insurance GroupIt is a mission of the MS&AD Insurance Group to contribute to the development of a vibrant society and help secure a sound future for the earth, by bringing security and safety through the global insurance and financial services business.We intend to discharge our corporate social responsibility to stakeholders through all our business activities, guided by the fundamental idea that all of our business activities are for the realization of our Mission and Vision.

Perspective of CSR approaches

Take steps to protect the global environment

Grow together as partners

To create a world-leading insurance and financial services group that consistently seeks sustainable growth and to enhance enterprise value

"Customer Focused""Integrity" "Teamwork" "Innovation" "Professionalism"

KPI was introduced at the 3 companies, Mitsui Direct General, MSI Aioi Life, and MSI Primary Life, for the aim to further its approaches effectively in line with the PDCA cycle.

(*1) 　➡Subjected from fiscal 2012 onwards, 　　➡Subjected from fiscal 2013 onwards (*2) The Targets and Performance of fiscal 2012 are figures for the 3 subjected Group companies　 (*3) Former brochure type covenants are replaced with "Environment-friendly covenants" which are available on the company website.　(*4) Number of employees participating in or contributing to volunteer activities at work or in private.

＜Examples from fiscal 2012＞

CSR Report 20133 CSR Report 2013 4

Pillar of approaches

Pillar of approaches

Ⅰ

Our Mission Our Vision Our Values

Provide products and services that meet customers expectations for quality

Provide appropriate disclosure of information and appropriate returns to shareholders.Strive to raise corporate value

Maintain sound relationships and cooperate to fulfill corporate responsibility

purpose, and opportunities

As a member of society. contribute to its sustainable development Take steps to protect the global environment

Grow together as partners

ALL BUSINESSACTIVITIES

Corporate governance, compliance,risk management,

information disclosure,respect for human rights,

the environment

Crstomers

Agents

information and appropriate returns to shareholders.Strive to raise corporate value

ALL BUSINESSACTIVITIES

Shareholders

Employees

Localcommunities

and internationalsociety

The Environment

Maintain sound relationships and

Businesspartners

(outsourcers andsuppliers, etc.)

Improvements of products/services initiated by customers' voices

○The "applicable classes" in the GK Automobile Insurance's expiration guidance was changed to the "Classes for recommended plans 3-1" so it will be more easily understood by customers. [MSI]○On the "Notice of service agreement" for fire insurance, we changed the letters of the disclaimer describing the insurance premiums certificates in red. [MSI]○Regarding the Road Assistance Service, in addition to a pamphlet, a flyer was made to inform our customers about the benefits of this service in an

easy-to-understand way. [ADI]○When sending fire insurance certificates, there were many saying that they "don't know how big and where the Bell Marks are enclosed", so we expressed

our commitment by designing the guidance document so it can be easily understood by customers. [ADI]○The "Mega-Solar General Compensation Plan" was put on sale for mega-solar business enterprises [MSI]○The smartphone application "SumaHo" which has a drive recorder and a contract status checking feature, and the paperless "Eco-insurance

certificates" were released. [MSI]○The smartphone application "Sapo NAVI" equipped with accident prevention features was released. [ADI]

Releasing new tasks/risks confronting our society, and developing and improving our products dealing with such new tasks/risks.

Prio

rity

Issu

es

Issues Index

①Improvements of products/services 　initiated by customers' voices. Continue the

approachesContinue the approaches

Figure found below the table

Continue the approaches

Continue the approaches

Figure found below the table

Equal to or greater than the previous year

Target Performance Target

Subjected Companies (*1) Fiscal 2012 Fiscal 2013

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②Customer satisfaction (as evidenced in questionnaire results) for overall response to accidents.

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.Ratio of customers wishing to recommend any agents to their friends and acquaintances.

Electricity use of all domestic locations

Paper consumption of all domestic locations (Copy paper, prints, machine tabulation)Gasoline consumption of all domestic locations

The ratio of contracts which selected the Web policy clauses

③Ratio of customer recommendation (as evidenced in questionnaire results) for company/agents.

Ratio of employees feeling pride or job satisfaction (all-employee average on a 6-point scale).

⑩Employee satisfaction (questionnaire results) "Pride, Job satisfaction"

Ratio of employees, regardless of sex and age, feeling free and lively at work places (all-employee average on a 6-point scale).

⑪Employee satisfaction (questionnaire results) "Working Lively"

④Releasing new tasks/risks confronting our society, and developing and improving our products dealing with such new tasks/risks.

90.0%90.0% 89.9%

90.0%89.5% 89.3%

90.0%90.0% 88.7%

90.0%90.0%

166,275MWh

161,366,000kWh

163,890,000kWh (*2)

13,619t 11,669t 15,998t (*2)

7,233kℓ

87.6%

65.0%60.0% 51.7%

225 231

4.4 points 4.3 points

4.3 points 4.1 points

Increased relative to last year (14,864 employees for fiscal 2011)Increased relative to last year (4,402 employees for fiscal 2011)

16,142

5,697

⑤Electricity consumption

⑨Number of female managers (section manager or above)

⑫Number of employees practicing social contribution 　activities (*4)

⑬Of the above, the number of employees participating in 　waterside activities of Biodiversity preservation.

⑥Paper consumption

⑦Gasoline consumption 　(from fiscal 2013)

⑧Web policy clauses 　selection rate (*3)

Ⅱ

　 Branded Product for personal customers "TOUGH"ADI marketed "TOUGH" which is leading products for personal customers including automobile, fire and third sector insurance (medical) under the 3 concepts (our promise to customers) of "Quick", "Reliable" and "Kind". It puts up a brand slogan of "Tough security to you" and provides our customers with "assurance for responding to accidents", "utmost compensation and services" and "opportunities for social contribution through our products".

　 Online ContractingDue to their specific business model, Mitsui Direct General emphasizes the importance of the service so that "customer can understand product/services and proceed with contracts on the website". Therefore, with the concept of offering "easy-to-understand, simple products", its products are de-signed for the ease of contracting and provide truly essential coverage. With the additional concept of "convincing a wide a range of c u s t o m e r s " , i t offers discounts a n d i n s u r a n c e premiums that are only possible with Internet trading.

　 Branded Product "&LIFE" for personal customers

At MS I A io i L i f e , a t ype o f l i f e insurance is being promoted under the brand named "&LIFE"."Guard with big 'assurance' against many 'IF Events' in life" characterizes t h e r e l i a b l e insurance that leads customers to a bright future.

　 Foreign-Currency-Denominated Fixed Whole-Life Insurance

At MSI Primary Life, the popular foreign-currency-denominated fixed whole-life insurance in "Happiness, Ever" was turned into a series with the addition sale of "Fun, Ever", a foreign-currency-denominated fixed whole-life insurance, which meets to the needs of wanting to use the amount increased for yourself while leaving a future behind for family.

In addition to the higher interest rate than the Japanese yen with this "foreign investment", this life insurance plan features "regular payments" of annual interest returns over 10 years and "death benefit enhancement" that increases death benefits after 10 years.

　 Branded Product for personal customers "GK"At MSI, a series of key products (automobile insurance, fire insurance, and accident insurance) under the common brand of "GK ~ Wishing to be your assurance Goal Keeper" are offered for personal customers. In "GK Automobile Insurance", they have three plans ("Basic", "Standard", and "Enhanced") according to the width of the coverage and offer "car insurance that is easy to understand and choose".In addition, by allowing customers to choose a customized contract that fits their car lifestyle from "MY option", they offer optimal automobile insurance for customers.

Improve simplicity and convenience for customers

　 Offering smartphone applications ("SumaHo", "Sapo NAVI")

MSI offers "SumaHo," a free application for smartphones."SumaHo," which can be used to check and change cus tomers ’ po l i cy and provides "Emergency Navigation" that is useful at the time of accident or breakdown and the "Driving Capability diagnosis" that supports safe dr iv ing, has had over 270,000 downloads in 10 months since the service launched and was awarded "MCPC Award 2013 Grand Prize" and "The Minister of Internal Affairs and Communications

Award" in April 2013.

ADI offers "Sapo NAVI (navigation)," an application for smartphones, to help prevent car accidents and be a reliable help when an accident does happen.

With "Sapo NAVI", which has the three contents o f "Sa fe dr i v ing , " "Acc ident prevention" and "Accident/Trouble response" as pi l lars, they support our customers' "secure car life."

　 Provision of understandable explanatory documents

MSI and ADI have laid down in-house rules concerning terms to be used in policy clauses and items for notation in pamphlets, we began using policies and pamphlets with plain terms and figures. Furthermore, the "Web policy clauses" is easily accessible by personal computers, without worry about data security, where functions like enlarged prints and a search engine are available.

　 Improve the convenience for customers in contracts

Deferred payment of initial premiumAt MSI Aioi Life, from April 2013, they introduced a "deferred

payment system of initial premium" that starts insurance coverage at the time of receiving application and declaration in which customers pay initial premium by bank transfer after insurance policies become effective. With this system, a cashless application process becomes possible, offering a highly convenient service to our customers.

Declaration formAt MSI Aioi Life, we renewed the declaration form that we ask customers to enter their health condition by utilizing the analysis results of erroneously omitted cases as well as scientific methods. As a result, its easy-to-understand design was evaluated highly, and it was the first life insurance declaration form to obtain the "UCDA cer t i f ied ‘Des ign That Communicates’" by the Universa l Communication Design Association (UCDA).

　 Initiatives for people with disabilitiesAdoption of SP codesMSI has adopted SP codes, which were developed for older people or those with visual impairment, on the pamphlets for its GK Automobile Insurance*, GK Fire Insurance and GK Personal Accident Insurance products. When the codes are read with a special reading unit, the recorded information can be listened to out loud. * Adopted in pamphlets for new contracts since October 1, 2013.

Printed material in using Color Universal DesignMSI and MSI Primary Life prepare pamphlets certified by the Color Universal Design Organization, an NPO entity that presents easy-to-read information to all people regardless of personal differences in color vision.

Internet-based Roadside Services for People with Hearing ImpairmentsMSI and ADI offer an Internet-based roadside service system for people with hearing impairments. Customers can use the e-mail and Internet functions of mobile phones and smartphones (iPhone and Android) and follow on-screen guidance to transmit the required information, rather than using oral communication.

Quality Improvement in response to stakeholder view

Develop products from customers perspective

Schemes for receiving feedback from customers

MS&AD Insurance Group has constructed various schemes to absorb stakeholder opinions and reflecting them in discussions on the management level to improve our work processes and the quality of our products and services.

Customer QuestionnairesMSI and ADI ask their customers about the degree of satisfaction with the services at the time of contract, the advisability of the products and services to others, and the degree of satisfaction with accident responses through the questionnaire. As a result, they designate Key Performance Indicators (KPI), and are working on efforts to gain trust through the improvement of the quality of their products and services.

Customer feedback structureDomestic Group insurance companies formulated its response policies in accordance with the "Basic Policy for Responding to Customer Communications" and is sincerely carrying out responses to customer opinions, which includes complaints, and is considering measures for improvement. MS&AD Holdings on a quarterly basis confirms the status of accepting complaints at each company, checks whether systems regarding responses to customer communications are properly managed and reports it to the Management Committee. In addition, MSI, MSI Aioi Life, and MSI Primary Life, operates a complaint handling management system in accordance to the international standard "ISO10002" (Quality Management - Customer Satisfaction - guidelines for complaints handling in organizations).

Schemes for receiving feedback from external experts

At MSI, ADI and MSI Aioi Life, an ad-hoc unit which engages in the quality improvement of business practices conducts periodical exchange of ideas with external professionals to secure advice for providing satisfactory products and services to customers. Those expert opinions are reported to management and utilized in quality improvement.

Schemes for receiving feedback from agents

MSI and ADI utilize the opinions of agents for the development and revision of easily understandable products from the customer's perspective. By valuing communication with agents, it has established schemes like the Product Monitor Program and Agent voice system to listen to opinions.*1 *1 Please refer to page 8 for "Communication with agents"

Schemes for receiving feedback from employees

MSI, ADI and MSI Aioi Life adopt a system to collect employees opinions for business improvement. Their opinions are considered at each division at the headquarters and the feedback of results is provided through means like bulletin board disclosure. Long-term issues are monitored by an ad-hoc unit to consider their opinions. They also have a system where corporate executives exchange views directly with the employees in order to utilize the views of employees.

Improvem

ent of quality of products and servicesPillar of A

pproaches

Ⅰ Improvem

ent of quality of products and servicesPillar of A

pproaches

Ⅰ

5 CSR Report 2013 6

Improvement of quality of products and servicesThe 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 materializing growth.

CSR Report 2013

Schemes for receiving feedback from

Schemes for receiving feedback from

Domestic insurance companies in the Group are developing readily understandable products from the stakeholders’ perspective, which includes our customers.

Pillar of approachesⅠ

Payment of insurance claim service preferable to customers　 Reliable receipt system for accident

reports and the provision of information about accident response progress

At the domestic non-life insurance companies in the Group, each company's accident report reception center accepts all domestic accidents reports 24 hours a day, 365 days a year. In addition, during midweek nights and holidays, in response to the customer’s request, the reception center provides initial support such as "contacting with the counterparty of the accident." In case of hospitalization due to injury, the company also provides a service for visits by special-assignment staff.The assigned personnel gives information on the state of progress after accidents and makes efforts to reply to their queries from their perspective.

　 "Communication Site" opened for accident-response services

At Mitsui Direct, a communication site is open about accident-response services to remove customer's anxieties.By placing the photos o f ou r emp loyees assigned to accident, they are putting their best e ffor t so that many of their custom-ers may share their feelings of assurance.

　 Improvement of skills of personnelWe engage in the quality improvement of the claim service assigned personnel who contact our customers.

Good Support CampaignMSI imp lements t ra in ing p rog ra ms f o r t e l e p hone call-handling and role-playing so employees assigned to the total loss support department could provide customers with serv ices of a h igh-qual i ty standard.

Business improvement projectA D I i s p ro m o t i n g t h e q u a l i t y improvement of operat ions by female employees by holding up the "Ful l Support Declarat ion" and providing "Speedy", "Kind" and "Reliable" accident handling services (LIPS : Lady Improvement Projects). The results are shared at the national meeting and enhances capabi l i t ies of the ent i re c la im service department.

Communication Site

Scene of the Customer-Response Role-Playing Contest

Scene of training

Call handling contest

LIPS group discussion briefing papers

7 CSR Report 2013 8CSR Report 2013

Quality improvement of the Contact Center

Growth with our agentsWe strive to maintain and improve quality through on-going dialogue with agents. We also aspire to grow with them while supporting to improve the work quality of agents and deliver high-quality products and services to customers of all types.

The Contact Centers of each MS&AD Insurance Group company's personnel work together to further raise the quality of dealings with customers and create synergies such as the joint use of the tele-phone system infrastructure.

　 Quality improvement in the GroupContact Center Strategy Meeting and Quality Improvement Committee Each Group company holds the Group Contact Center Strategy Meetings and the Group Contact Center Quality Improvement Com-mittee on a regular basis, which is composed of representatives of each Contact Center in the Group. Besides the sharing of informa-tion, the meetings are held for the purpose of making the work of each Group company's Contact Centers more efficient and improve its quality.

Personnel exchange systemThe personal exchange system between contact centers within the Group was established, and staffs of contact centers actively inter-act with each other through "SV (Supervisor) networking event", "SV discussion meeting", "Mutual dispatch of trainees" and "Participa-tion in training as an observer".

Call handling contestTo "improve call-handling skills" and "enhance motivation" of all the group company contact centers, the MS&AD Group annually con-ducts the Call-Handling Contest. The contest is positioned as a place

for cross pollination between contact cen-ters within the Group, where every participat-ing staff goes beyond workplace borders and refines their skills in a friendly competi-tive climate.In fiscal 2012, among approximately 3,000 staff members working at the Group’s contact centers, 14 finalists participated in the contest after elimination bouts.

　 Sharing telephone system infrastructureThe contact centers of MSI, ADI, Mitsui Direct General, MSI Aioi Life and MSI Primary Life now share a single telephone system.A similar telephone system infrastructure is placed in two locations; one in Chiba Prefecture and the other in Hyogo Prefecture, so that either one can take the place of the other in times of system failure at one location caused by natural disasters or mechanical hitches. This integration of telephone system infrastructure is positioned as a precedent case of the core systems integration of these companies scheduled in July 2013 and has resulted in a synergistic effect, such as the reduction of system maintenance costs.

Improvement of Agent Work Quality

　 Scheme and system for Improvement of Agent Work Quality

At MSI, ADI, and MSI Aioi Life, the headquarters' department in charge of agent education has formulated education policies and educational programs through the Internet and group training, for agents to gain knowledge about topics such as compliance, products, off ice work/systems and sales skills. In addition, business procedures, behaviors and awareness are reviewed on the basis of customers' voices (complaints and compliments) and they are used for training such as the incorporation of examples of improvements into agent workshop sessions.

　 Support for Improvement of Agent Work Skills

Providing an Online Learning EnvironmentMSI also makes effective use of "MS College", a system for centralized management of information for each canvasser on items such as insurance sales qualifications, participation in group seminars, and history of e-learning. "MS College" makes it possible to support each canvasser to improve the skills in line with each level of them. By the end of fiscal 2012, about 100 e-learning courses had been utilized by about 30,000 agents.ADI has been offering "ADWeb Lecture", a Internet-based system utilized by about 120,000 canvassers of agents. The "ADWeb Lecture" transmits training programs on topics such as compliance and product descriptions for insurance that lead to quality improvement for canvassing, while also offers learning programs and exams to obtain qualifications. And since April 2012, a new information program "News ADvance" started, which

provides information, tools, etc. to help with recruitment activities.

Training in response to the needs of agentsTo respond to diversifying customer needs and changes in the environment, MSI Primary Life is enhancing various training programs for agents and reinforcing its setup for sales support through agent education.Following the Consulting Sales Training, "In-Basket Training," a new hands-on management & leadership skill training p ro g r a m f o r a g e n t s , h a s b e e n developed and offered to improve their judgment and organizational skills such as their abil ity to think and handle various issues promptly and accurately.

　 Framework to secure quality in agent workMSI has established an "Agent Quality Certification System (Q Mark system)" to make arrangements that ensure the provision of services of uniform quality to customers. The system operates as a standard for certification of proper execution of various insurance procedures that suit customer’s requests and on accurate knowledge regarding insurance products and claim handling.At ADI, to improve the quality of agent and canvasser operations, who play an important role as contact points for customers, ADI clarified the quality standards and action guidelines that agents and canvassers need to meet for each operational process, and are now promoting joint efforts with agents and canvassers to reform such process to the customer-oriented "Project ADvance".

Management assistance of agentsMore specialization and objectivity as well as a middle- to long-term perspective are required to provide a high-level of support for agent management. Therefore, MSI established a career agent management support office in the sales promotion department. About 80 specialist staffs in support of agent management, which drives supported agents to sustain growth and

accomplish their goals for materialization through periodical meetings (once a month) "directly" and "continuously". In addition, Aioi NDI Support Box Co. Ltd, an affiliate company of ADI, is proposing business processes to help agents attain the targeted presence and business mode. They are also conducting training to boost their agent sales power and improve their customer-handling and business quality.

Communication with agentsMSI and ADI hold regular training and workshops in order to promote mutual communication with agents and help improve their quality effectively and efficiently.Additionally, they are supporting mutual information exchange between the company and its agents through the agent organization, so that communication is activated and services of higher quality are offered to customers. At MSI, "Mitsui Sumitomo Insurance Agent Association (MSA)", organized mainly by professional agents, and "Advanced Club (AC)", formed around

maintenance shops, have been active. Both agent organizations are putting their best effort to upgrade their organizational setups and boost their growth through organizational activities so that agents can offer high quality services and the most optimal insurance product to customers. At ADI, the Nation-wide Professional Group, under the philosophy that "We are devoted to providing assurance and satisfaction to our customers through mutual efforts among agents together with the company", actively works on providing professional products and services, securing the perpetual prosperity of its business customers and contributing to local communities.

Improvem

ent of quality of products and servicesPillar of A

pproaches

Ⅰ Growth w

ith our agentsPillar of approaches

Ⅰ

Pillar of approachesⅠ

Supports activities of social contribution by employeesIn our view, action by each employee as a citizen of the local community is not only linked to his or her growth but also vital for learning about the kinds of issues in the society, and what is expected of us.

　 MS&AD Unison Smile ClubAt the MS&AD Insurance Group, employees who support the activity donate 100 yen apiece from their salary to NPOs, to support programs such as sending charity Christmas cards and knitting to the world's children. The number of the participants in the whole Group was about 14,795 as of the end of March 2013.

　 Nationwide activities of community contribution

At MSI and ADI, each department and branch actively engage in various local contribution activities. At the end of fiscal 2012, 99.0% of departments and branches were engaged in such activities. At MSI Aioi Life, employees, agents and their families participated in activities such as environmental conservation.

Response to large-scale disastersThe MS&AD Insurance Group is preparing a Group-wide insurance payment scheme to fulfill our mission as an insurance company of paying insurance claims as soon as possible to customers affected by disaster when large-scale disasters occur. Measures include setting up local disaster-response rooms and dispatching additional support staff to the field. Based on our experience in the Great East Japan Earthquake, we are preparing our infrastructure for responding to disasters during normal times and stepping up preparatory disaster-response training.

　 Countermeasure for risksThe MS&AD Insurance Group has been engaged in advisory services for customers such as earthquake countermeasures and Business Continuation Programs (BCP) etc. as an endeavor to "not forget the recent earthquake disasters". Moreover, to pass the precious wisdom learned through experiencing the disaster down the generations, we published booklets entitled "How Companies Have Overcome the Great Earthquake" and "Wisdom to Save Children from Earthquakes and Tsunamis" to widely provide valid and useful information for our customers.

　 Spreading Earthquake InsuranceAfter the Great East Japan Earthquake, we received many opinions "it was really good to have joined earthquake insurance" from disaster victims at the time of payment of insurance. MSI and ADI rediscovered the importance of customers understanding the necessity and the contents of earthquake insurance correctly. For many people to get earthquake insurance, they are offering advice about earthquake risks to our customers.

　 Donation from the Web Policy clausesMSI contributed a part of the donation to the"Green Power Supporter" program, which aids Tohoku reconstruction efforts. ADI also contributes to the Great East Japan Earthquake stricken areas by giving donations through the approaches of the Web Policy clauses.

　 Rice field reconstruction volunteering by employeesThe MS&AD Insurance Group helped restore rice fields damaged by the Great East Japan Earthquake in Minami Sanriku-cho, Miyagi Prefecture. 250 Group employees and their families in total participated in rice planting, harvesting, and debris removal. The harvested rice is served in the company cafeteria. In fiscal 2013, with local elementary school students, we plan to regularly conduct env i ronmenta l educat ion, which inc ludes r ise planting/harvesting and wildlife surveys.

9 CSR Report 2013 10CSR Report 2013

　 Support of instituting "National Catastrophe Insurance Fund of Thailand"

With natural disasters taking place repeatedly around the world and the damage growing ruinously, the Thai government has instituted the "National Catastrophe Insurance Fund of Thailand" to ensure compensations for damage caused by future flooding. They were the first foreign insurance company to be awarded with the "Prime Minister’s Insurance Award 2011: Non-Life Insurer with Outstanding Management" in September, 2012, by the Thai Office of Insurance Commission, in high recognition of the contribution to the Thai insurance industry with their concerted efforts up until now with the Thai flooding recovery efforts and MSI's support of this insurance system.

　 Provision of risk management services in AsiaThe Thai flooding in 2011 gave momentum to an increasing number of companies in ASEAN regions to plan measures for natural disasters and review business continuation plans. Under the MS&AD Insurance Group, InterRisk Asia (Thailand) Company Limited, a specialized risk management company, the first of its type by Japanese-affiliated companies in Thailand, was established to provide closely localized, high-quality risk management services to our customers. With the launch of this new company, the MS&AD Insurance Group has now 5 outposts in the risk management service network; Japan, Singapore, China (Shanghai), India, and Thailand.

　 Approaches to strengthen risk management overseas during natural disasters

At the MS&AD Insurance Group, we are committed to fulfilling the social mission by providing various solutions to our customers against natural disaster risks and offer advisory services for risk assessment and risk control while undertaking risks.In the wake of the Thai flooding, we have further strengthened and upgraded our risk management performance of natural disaster risks overseas.-Streamlined verification process of risk models-Strengthened risk management such as with the improved accuracy of risk information for hazard mapping　

　 Participation in Pacific Disaster Risk Financing Pilot Program

MSI participates in the "Pacific Disaster Risk Financing Pilot Program", which was established in January, 2013 set up jointly by the Japanese government and the World Bank. This program, is designed to finance quick reconstruction funds to nations and regions in the Pacific Islands, where insurance markets have not matured sufficiently, that are afflicted by natural disasters of a certain scale.As large-scale calamities increase globally, by participating in this program, the first of its kind in the Pacific region, they support the region’s economic and social activities.

Oversea approaches

Clearing the rubble

Rice planting

Rice harvesting

Serving rice at the company cafeteria

MSIExtermination of non-native species in Tateyama, Toyama Prefecture.

ADITraffic safety activity at the headquarters

MSI Aioi LifeSupport for greening and flower-bed plantingin Zoorasia Yokohama

Charity Christmas card

"Let’s present knitted goods to children around the world" Project

Contribution to create the sustainable societyPillar of approaches

Ⅱ Contribution to create the sustainable societyPillar of approaches

Ⅱ

Contribution to create the sustainable societyAs a member of local communities and the international community, we engage in social contribution activities through our insurance and financial service businesses. In addition, our employees voluntarily participate in the environmental protection and community activities to contribute to their sustainable development.

http://www.ms-ad-hd.com/en/csr/community/contribution.html

Resolutions of issues in the society by utilizing Group's technology and know-how

Please refer to our website for following approaches.* Approaches Related to Traffic Safety　　　　　　 * Approaches of Education Support* Approaches Related to Life and Medical Services　

Pillar of approachesⅠⅠ

* Approaches Rooted in the Community* Approaches Related to Welfare Fields

Formation of the ecological network

Approaches for preserving biodiversityIn the action plans of the MS&AD Basic Environmental Policy, it explicitly includes the approaches to preserve biodiversity, which we are promoting in the Group. We also engage in biodiversity conservation awareness activities that target corporations and conduct research regarding the mitigation of risks.

　 Provision of biodiversity consulting services

At InterRisk Research Institute & Consult ing, they analyze biodiversity risks throughout the business value chain, on which to base their proposals for business opportunities. In this area where new environmental management issues are involved, they have leading-edge solutions, abundant knowledge, and have been serving many top global corporations for over 10 years now.

　 Information transmission from "ECOM Surugadai"

The public environmental communication space "ECOM Surugadai", was opened on May, 2012. This space has the role of transmitting information to the community such as information about the four seasons of surrounding green spaces, and event information in the local Chiyoda ward. In addition, events such as lectures and gardening courses are held as a quorum for communication with the local populace.

　 "MS&AD Ramsar Supporters"MS&AD Insurance Group is involved in conserving the biodiversity of waterfront areas, particularly focusing on registered wetlands protected under an international convention (Ramsar Convention), which are internationally important wetlands that serve as habitat for waterfowl. In fiscal 2012, activities were conducted at 8 wetland sites in Japan, with more than 1,000 employees and family members participating.

　 Project for tropical reforestationSince April 2005, MSI has been working for the rehabilitation and regeneration of the Paliyan Wildlife Sanctuary on the Java Island of Indonesia. From April 2011, support was provided to local residents through helping to improve their agriculture that leads to income increase and self-support. In addition, from 2012 a degraded land restoration project was started in Merapi National Park of the same Java island with cooperation from JICA.

Medium- and long-term reduction goal of CO2　 TargetsThe MS&AD Insurance Group set up medium- and long-term reduction goals for CO2 in September, 2010. Based on this reduction target of CO2, the Domestic Group insurance companies set up the CO2 reduction plan with concrete measures and promoted approaches for CO2 reduction.

　 Progress situationThe MS&AD Insurance Group, with the purpose of mitigating climate change, is trying company-wide to reduce energy consumption by all employees to meet the targets of the mid- to long-term goals of CO2 emission reduction. The CO2 emissions of fiscal 2012, due to the significant increase of the CO2 emissions per electricity use factor from the shutdown of the nuclear power plants, increased +0.2% against the reference fiscal year and did not meet the mid-term reduction target of -4%.

CSR Report 2013CSR Report 2013

Reduction status of Environmental Burden　 Status of effort for reduction of

environmental burdenThe MS&AD Insurance Group is promoting a Group-wide campaign for energy conservation and is saving resources by reducing the consumption of energy and paper in our business activities.In order to promote continuous and effective efforts, we attained and maintained our ISO14001 certification, an international standard for environmental management systems. From fiscal 2013, the Group’s unique management system "OUR EARTH Project" was established and we promoted environmental activities across all of the group companies and locations. With this management system, the Group as a whole is promoting

activities for saving energy and resources to reduce consumption of electricity, gasoline and paper, conserving biodiversity, and is contributing to society.

1211

Domestic Environmental burden results of the Group

Fiscal year CO2 emissions Compare to base year

Fiscal 2012 102,129t-CO2 0.2%Fiscal 2011* 86,569t-CO2 ▲15.1%Fiscal 2010 94,934t-CO2 ▲6.8%

Fiscal year

Fiscal 2009Fiscal 2012Fiscal 2020

CO2 emissions*

101,906t-CO2

97,830t-CO2

71,334t-CO2

Reduction target of CO2

(compare to base year)―

4%30%

Base yearMedium-termreduction goal

Long-termreduction goal

ElectricityUtility gasGasoline

Paper

Fiscal 2011171,528MWh*1,928,000m3

7,692kl 16,445t

Fiscal 2012 166,109MWh

2,038,000m3

7,437kl14,445t

Rate of reduction ▲3.2%

5.7%▲3.3%▲12.2%

Toward the end of mitigating global warming through our core business, the MS&AD Insurance Group is working to devise and develop new products and services not bound by conventional frameworks.

　 "Web policy clauses / Eco-insurance certificates" approaches

MSI and ADI introduced Web policy clauses and Eco-insurance certificates* to promote the conservation of paper resources. In addit ion, to the extent that our customer has agreed and cooperated in this regard, they are contributing donations that would lead to supporting environmental conservation.*MSI introduced with automobile insurance policies starting in October, 2012.ADI is scheduled to introduce this with automobile insurances starting in October, 2013.

　 "Green Power Supporter"Under the "Green Power Supporter program" MSI engages in the global environment protection with customers through insurance.Corresponding with the number of cases of the 4 approaches such as Web policy clauses /Eco-insurance certificates and electronic contracting

procedures , MSI donates to env i ronment conservation activities, such as the Indonesia tropical rainforest recovery project and donation mechanisms such as Tohoku reconstruction aid. MSI donated 40.65 million yen during the year from February 2012.　　 Use of recycled automobile

partsThe MS&AD Insurance Group encourages customers to use recycled parts when having repairs made after accidents. In this way, the Group is promoting a recycling-oriented society and reducing the environmental burden of repairs.MSI gives repair shops and customers easy-to-understand explanations and encourages repair shops to make extensive use of recycled parts after asking customers if they would like to use them.ADI developed a wreck network auction system together with an NGP group (a nationwide network of dismantling businesses) to promote the use of recycled automobile parts. In fiscal 2012, the auction released about 24,600 vehicles and 1,550 businesses participated.

　 Weather DerivativesMSI develops in response to the needs of customers and sells the products of weather derivatives and Earthquake Derivatives which have positive effects for hedging or mitigating the loss caused by unfavorable weather or earthquakes. Also in the United States, it provides a hedging scheme of weather risks through an affiliate company.The affiliated company was awarded the prize in the "Best Dealer, Asia" award, which is held by "Environmental Finance", UK monthly magazine, 4 times in the past.

　 Support of renewable energy projectsIn coordination with the start of "Feed-in tariff" system in July 2012, to comprehensively cover various risks surrounding mega-solar business enterprises, MSI put on sale the "Mega-Solar General Compensation Plan" since June 2012. By responding to the needs of mega solar company indemnity r isks, they are indirectly supporting the spread of renewable energy.

　 Provision of risk consulting servicesAt InterRisk Research Institute & Consulting, specialists qualified with professional expertise in environmental issues are putting into practice advanced and highly specialized expertise to provide our customers with risk solutions by means of consulting services to analyze environmental risks and prevent/mitigate risks that cause damage to enterprises, building environment management systems and providing various types of researches and studies.

　 Support for certification under Eco Action 21

MS&AD Insurance Group supports the certification under Eco Action 21 for environmental management systems recommended by the Ministry of the Environment.At MSI and ADI, maintenance shops, agents, and business partner companies participate in Partner companies Greening Program to promote their approaches, more than 1,200 firms and agents have obtained the certification so far.

Contribution to the Global Environment through our core business

ECOM Surugadai

Organized green space (Forested land likely to be nesting sites)Suitable landing site (Forested land likely to be used to land and feed)

Data provided by Eco-Asset Consortium

*The data includes all energy usage at all of locations in Japan of the MS&AD Insurance Group (Calculation based on Rationalization in Energy Use Law) and gasoline consumption of domestic company-owned cars.

*The data was reviewed and corrected to increase accuracy.

*The data was reviewed and corrected to increase accuracy.

Ecological Network

Protection of global environment

Pillar of approaches

Ⅱ Protection of global environment

Pillar of approaches

Ⅱ

Protection of global environment MS&AD Insurance Group formulated the Environmental Basic Policy based on the Group Mission Statement, "to contribute to the development of a vibrant society and help secure a sound future for the earth, by bringing security and safety through the global insurance and financial services business" and is taking approaches to implementing the policy.

members participating.

Lake Utonai (Hokkaido Prefecture)

Yahata River (Hiroshima Prefecture)

Wajiro Wetland (Fukuoka Prefecture)

Yoshino River (Tokushima Prefecture)

Lake Biwa (Shiga Prefecture)

Fujimae Wetland (Aichi Prefecture)

Kabukuri Bog (Miyagi Prefecture)

Yatsu Wetland (Chiba Prefecture)

Yatsu Wetland activities

Pillar of approachesⅠⅠ

Human asset development

Employee Interviews

The MS&AD Insurance Group aims to develop employees who learn and think by themselves, take up challenges, and continue to grow. Domestic Group insurance companies offer a full range of education and support, including training, OJT (On the Job Training), and self-education.

　 Support taking up the challengeTrainee systemDomestic Group insurance companies have the In-house Trainee System, which enables employees to have a short-term experience in of roles they have not experienced before and workplaces they have an interest in. Through this program, employees can experi-ence the work of other divisions or the work of another company, which contributes to the promotion of understanding and the enhancement of communication.

In-house application systemMSI, ADI, MSI Aioi Life provide In-house application system. This system contributes for the support of career-building of employees who have a strong challenging spirit and have recorded a certain amount of achievement in their current position.

　 Education and TrainingDomestic Group insurance companies offer various opportunities for se l f -educat ion inc lud ing t ra in ing sess ions and externa l correspondence courses to assist employees with their self-directed learning and development. Training for unit heads is designed to reinforce management skills and workplace communication skills, which sustain overall human resource development. An OJT program has been established to help newly hired employees familiarize themselves smoothly with the workplace, and utilize their work experience while acquiring the knowledge and skills they need. Moreover, in fiscal 2013 we held a one-day group training session for all new employees of the five Group companies in an effort to foster a sense of unity among Group employees.

Approaches to practicing the Mission, Vision, and Values as a GroupThe MS&AD Insurance Group takes various approaches to sharing and practicing the Group’s Mission, Vision and Values. In fiscal 2013, at Group companies in Japan and overseas, we are working to further instill the Group’s Mission, Vision and Values by presenting

and discussing them at group training sessions and workplace meetings. * Please refer to page 3. for the Group's Mission, Vision and Values

Joint training for new employees of five Group companies

The in-house nursery school

13 CSR Report 2013 14CSR Report 2013

Approaches for Work-life BalanceThe MS&AD Insurance Group values diverse employee outlooks on value, so we implement a system to strike a good balance between work and life. We condition work environments and augment mea-sures of support so that employees will be able to work energetically while experiencing job satisfaction and growth. 　 Support of employees raising childrenMSI and ADI and MSI Aioi Life provide various supporting systems for the employees raising children as a company supporting the de-velopment of the next generation. ADI provides employees who take childcare leave a guidebook that sets forth the various systems and procedures related to child-raising. It also offers seminars for those on childcare leave, which they can attend with their children before returning to work. From April 2013, the company’s child care facilities of ADI and MSI

Aioi Life were made available to MSI as well. Now all three companies can use any facil-ity.

　 Care supportMSI and MSI Aioi Life provide Leave for nursing and Temporary retirement for nursing. Leave for nursing allows employees to leave up to 5 days (in case one in the family requires nursing care) every

fiscal year to take care of his or her family who are in need of an attendent. Temporary retirement for nursing allows employees to leave up to 365 days with tenure of office, which encourages moti-vated employees to work after their period of nursing leave.ADI instated provisions which include, shorter hours for nursing, Leave for nursing, and Temporary retirement for Nursing with a one year limit. ADI also has a provision to rehire employees who retired for nursing reasons.

　 Innovation of work stylesMSI and MSI Aioi Life provide "months for creating ease" and "no-overtime days" to encourage their employees to go home early for the improvement of work-life balance and help them increase productivity during limited hours. They also hold meetings twice a year at each workplace to create more ease at work.ADI conducts "All Employees Activity Innovation Campaign" which enables the compatibility between innovation of work and work styles, to improve productivity. All employees strive for the improvement in work-life balance.

We believe the genuine value of an insurance company can be shown by providing customers with intangible products that qual ity exceeds the i r expecta t ions . Being conscious about cus tomer ’s needs , w e a r e p o s i t i v e l y a d o p t i n g t o o l s t o improve the level of customer services from inside and outside of the company. Also, try to earn customer satisfaction by acquiring cooperation and knowledge from surrounding people so that we can be depended on and be close to our customers. By providing comprehensive services, we hope that more people will become our fans.

MSIADIMSI Aioi Life

239 (220)206 (166)

19 (36)

138 (115)242 (211)

12 (23)

5 (8)8 (4)1 (0)

Temporary Leavefor Childcare

Temporary Leave for Nursing

Childcare, Nursing Provisions forshorter hours

Actual use of child-support program, care support program in fiscal 2012(Unit: persons, figure for the last year in parenthesis)

Ami OmoriKita- Kyushu Service Center, Kyushu Claims Dept. 1st MSI

Sayoko Shirai ManagerEhime Sub-Branch , Shikoku Production Dept.MSI Aioi Life Masami Kunishima

Operation Planning Group, Policyholder Services Dept. MSI Primary Life

In addition to the "Full Support Declaration," which our company e m p h a s i z e s , o u r branch emphasizes "Branch’s Full Support Declaration" for our c o r r e s p o n d e n c e with the agents and canvassers that we work with. Our goal is to gain trust by following the three main principles: "Speedy" = don’t make customers wait, "Kind" = sincere attitude, and "Reliable" = support by all of us with professionalism. We always keep these three principles in mind in our daily efforts with the belief that this would lead to customer satisfaction.

B e s i d e s p a y i n g insurance claims, our job requires a wide range of expert ise and negotiation skill. Keeping in mind that for customers, an ac-cident is not an every-day occurrence, while we work on accident response dai ly, we try our best to explain to our customers how the incident is handled without using jargon. We also recognize the importance of making a progress report to customers to ease their worries, so that all customers feel safe and satisfied with our service.

The corporate r isk management depart-ment enhances our Group risk manage-m e n t f r a m e w o r k , analyzes the Group’s exposure to various risks, and monitors if the Group maintain sufficient capital to realize our corporate vision.We aim to keep growing as the insurance and financial groups providing risk solution services for "customer safety" by coping with domestic and international environmental changes, by improving expertise, and by providing the best Group-wide service.

In our department, we are promoting the revision of our "invoice" during various types of transfer procedures as a part of the services based on the "Customers First" principle. In the first half of 2013, we have been working on the order made of pension invoices.To send an invoice based on each customer’s contract state, we are trying to make better invoices by listening to the voices of customers from call centers, affiliated companies and other departments within companies.We wish we can contribute by providing service improvement for customers through our "invoices."

R e m i n d i n g m e such pr inc ip les as "prov id ing enough support and sense of relief for customers" and "reducing risk as much as possible," I am engaged in daily sales activities. I am motivated by each cus tomer ’s smi le . As the representative of the "insurance company closest to customers," I would like to keep making the best effort to improve my skills and provide sincere responses for our customers.

Practice of values and the growth of em

ployees

Practice of values and the growth of em

ployees

Kensuke Hiekata Deputy ManagerTachikawa Sub-Branch, Tokyo- Nishi BranchADI Masayoshi Daito Sub-Manager

Anshin Center Osaka 4th Claims Dept. Mitsui Direct General

Yasukazu Sato ManagerCorporate Risk Management Dept.MS&AD Holdings

The products in our intangible insurance and financial services are the crystallization of our individual employees’ consideration for our customers. As they continue to take new challenges and grow, each employee of the MS&AD Insurance Group strives to provide customers with security and safety by sharing and practicing our Mission, Vision and Values.

Practice of values and the growth of employees

　 Lecture and internship about insurance in university

At MSI, for the spread of knowledge about non-life insurance and risk management to students overseas, they are supporting t h e d e e p e n i n g o f knowledge about the non-life insurance industry. The Indonesia local subsidiary of MSI has been conducting seminars at prestigious Indonesian universities since 2007, and from 2010 has accepted student interns.

In addition, at the Thai local sub-sid iary as wel l , they accept about 20 students from Thailand universities and 5 students from Australian universities every year as interns. Due to the participa-tion of students as interns get-

ting employed by insurance companies after graduation, they think this will contribute to the development of insurance industries in vari-ous places.

　 Constructing an elementary school building in Thailand

An elementary school was constructed to improve the educational environment for children in Thailand, using a part of the donated money of "MS&AD Unison Smile Club," which is a donation system by officers and employees. Also, from the Thai land local company (ABI), 20,000 baht (approximately 65,000 yen) were donated for playground equipment. I n t h e o p e n i n g ce remony, ch i ld ren p re s e n t e d f o l k l o re dance in return for the donations.

Health management of employeesThe MS&AD Insurance Group str ives to breed workplace environments facilitating energetic work by all employees in good physical and mental health.

　 Medical CheckupStarting from the 2013 fiscal year, MS&AD Insurance Group introduced the operation of a Group-unified health check system that provides the services, health check-ups and reviews of their results.This enabled the group employees to get health check-ups and results no matter where they are employed. For the employees who need a follow-up health check, the welfare guidance by industrial doctors and nurses are provided at each company’s health management departments.Also, for the employees who use personal computers over a certain period of time, interview guidance by industrial doctors are conducted.

　 Mental Health CareMSI supports mental health care activities through the cooperation of the health management center and the employee consultation office. These activities include the support of mental i l lness prevention (Training, E-learning, Rounds of workplaces etc.), recuperation (consultation etc.) and workplace reinstatement. ADI implements activities such as providing mental health care in its e-learning system and training. It also established a consultation desk within and outside the company to provide a setup for employees to recieve consultation with ease. In continuation from last year, mental health care for employees in the afflicted disaster areas from the Great East Japan Earthquake is being provided.

CSR Report 2013 16CSR Report 2013

Medical Checkup

Promotion of the diversityThe MS&AD Insurance Group accepts diverse employee values, and gives all ambitious employees the opportunity to grow and demonstrate their talents through their work.

　 Promotion of the role of female employeesThe MS&AD Insurance Group considers it important that female employees take on challenges and bigger roles in the workplace by utilizing their own advantages and characteristics. This leads to the growth of both the employees and the company. In July 2011, the MS&AD Insurance Group instituted the joint declaration for promotion of female employees in order to develop their challenging spirit.The MS&AD Insurance Group will continue in fiscal 2013 to promote the role of women.

Roundtable discussion with 5 Group companiesIn fiscal 2012, a round-table discussion between the top management and female employees of the domestic insurance com-panies was held. We are providing the opportunity to exchange op in ions about the promotion of diversity and the develop-

ment of female managers. The contents of the discussion were distributed widely within the Group through a Group report, which helped to convey the messages of top management that supports the success of females.

"Mentor Award 2013" Award of ExcellenceADI received the "Award of Excellence" in "Working Women’s Empowerment Forum – People’s Movement to Support Motivated Working Women and Enterprise – the 5th Mentor Award 2013" for the first time as a non-life insurance company. It is because the "Female Management Career Mentor System" implemented from fiscal 2011 to support female management positions was highly evaluated.

　 Support for employees with disabilitiesMSI established a team called "Team WITH" to promote assimilation of people with disabilities into the workplace by giving educational support and creating support systems.The members of "Team WITH" engage in dialogue with superiors and employees with disabilities in the workplace, and provide a manual for workplace assimilation.ADI conducts ongoing initiatives to promote employment of people with disabilities and has established support systems such as a general consultation office within the company. These activities have been recognized and ADI became the first in the non-life insurance industry to be certified by the Ministry of Health, Labour and Welfare as a company with an outstanding track record in employment of people with disabilities.

　 Employment for the elderlyThe MS&AD Insurance Group has the rehir ing program for employees who have reached retirement age. The program allows employees to continue exercising their talents by applying the experience and skills. Several work options are offered by job types, number of working days and work hours so that a variety of working patterns are available to choose from.

15

Fiscal 2011 Fiscal 20121.6%　(69)3.5% (123)1.3% 　 (3)

2.1%　(90)4.0% (141)1.2% 　 (3)

Share of management positions occupied by women (figures in parentheses indicate number of persons)

Improvement of quality of products and services

　 The 1st Prize and Special Award by "Superior Insurance Company, Thailand Prime Minister Award"

In the "Prime Minister’s Insurance Award 2011: Non-Life Insurer with Outstanding Management," MSI Thailand branch won the 1st prize as the first foreign insurance company and the local subsidiary of

ADI in Thailand (ABI) was given the Special Award, which was presented by the Prime Minister of Thailand. This award is given to an insurance company with a highly evaluated management index, which includes financial cond i t ion and management principle as work efficiency. For MSI, this is the 8th award received

consecutively for the last 3 years.The company’s involvement to recover from the flood of Thailand and i ts contr ibut ion for the nation’s insurance industry were highly evaluated.

　 Providing Micro-InsuranceIn India where measures for helping the poor are one of the government's critical issues, the health insurance system for poor fami l i es by the government (RSBY) i s rap id l y d i f fused . Cholamandalam MS, a MSI's local subsid iary in India, is underwriting insurance in support of the measures for helping the poor and underwrote a cumulative total of 2.95 million RSBYs (fiscal 2012) in 5 states.The company received the "Best Performing Insurance Company Award 2012" for its promotion of its life insurance system, the opera-style o u t re a c h a c t i v i t y i n t h e l o c a l language, its efforts to promptly payo f f t he i n su rance c l a im to hospi ta ls, and i ts outreach and correspondence for i ts "RSBY" insurance payments in 2012.

　 Investment in Takaful ProjectThrough capital participation and dispatched employees to the Takaful corporation (a kind of mutual-aid business enterprise operated on Islamic doctrines), MSI has engaged in activities to provide assurance and security to the Islamic community in Malaysia where a majority of the population is Islamic and their religion prohibits coverage by insurance.

Contribution to building of sustainable society

ADI Thailand local subsidiaryABI, Award Ceremony

MSI Thailand branch Award Ceremony

Scene of roundtable discussion

Risk management seminar at Bogor Agricultural University in Indonesia

Awards ceremony

Constructing an elementary school buildingin ThailandInternship at a the Thailand subsidiary

MSIADIMSI Aioi LifePractice of values and the grow

th of employees

Overseas approaches

Overseas approachesThrough the Group's extensive operational bases overseas such as the Asian region, we strive for the quality improvement in our core business and for the approaches that lead to sustainable development of the local community.

We will actively work to realize the vision of MS&AD New Fron-tier 2013, aiming for our new growth without limiting ourselves.(1) In support of career development, we will

enhance our knowledge and provide opportunities to broaden our field of vision.

(2) In support of balancing our work with life, we will implement measures to assist ambitious employees to continue working while meeting other life commitments.

(3) In support of creating a productive workplace atmosphere, we will foster an environment that encourages women to take challenges.

Joint Declaration

*

*Our catch phrase and logo symbolize our tenacious stance "Challenge Yourself! Nice Try!"

CSR Report 2013 18CSR Report 201317

Activities in all over the world　 　　 　 Safety campaign at schoolUpon starting to under-wr i te genera l l i ab i l i t y insurance for schools in all Taiwan (kindergarten - high school), MSIG Ming-tai Insurance, an MSI's subs id iary in Ta iwan, used its experiences in underwriting and insur-ance payments and held an event for the purpose of securing safety and preventing risks on campus. In fiscal 2012, a musical was played to improve safety consciousness. DVDs of this musical and educational books for teachers were made and distrib-uted to elementary schools. In addition, safety maps within school district of the region the musical was played were created and distributed to the students, and employees gave a talk about "Safety inside School" as volunteers. These activities were highly evaluated, and they received the "Role Model Award in Education" at the "9th Corporate Social Responsibility Award (CSR award)" pre-sented by the "Global View Magazine"*.*Global View Magazine: Monthly business magazine founded in 1986 in Taiwan. Approximately 100 thousand copies are published.

　 　 Rainforest Remediation Project and

Environmental EducationSince 2005, MSI has been working for the rehabilitation and regenera-tion of the Paliyan Wildlife Sanctuary (in Java, Indonesia) cooperatively with Forestry Department in Indonesia. In 2012, a forest reproduction project was started to reproduce the forest and ecology of Merapi National Park which was damaged by the volcano of Merapi Mountain in 2010.In order to maintain the recovery of the tropical forest, with a coopera-tion from the InterRisk Research Institute & Consulting /Gadjah Mada University, "Environment Education" to teach the importance of forest in the area’s elementary school is held and a "Research on biodiver-sity" is being practiced with the same university. In addition, "Agricul-ture Technology Guidance" for local residents is held to improve living and prevent illegal tree felling due to economic reasons.

　 　　　　 Participation to "Go Green Program"　Aioi Nissay Dowa Insurance Europe (ADE German branch), which is the local subsidiary of ADI, has been participating in the "Go Green Program" held by Deutsche Post DHL since the spring of 2011.In the "Go Green Program," an environmentally friendly delivery service is practiced in which the amount of carbon dioxide (CO2) exhausted when deliv-ering postal mails to customers is calculated and the same amount of CO2 is reinvested to environ-mentally friendly projects (like hydroelectric power generation and wind power generation plant). ADE German branch made a donation equivalent to about 14 tons of CO2 in 2012, and was awarded a certification by Deutsche Post DHL.

　 　 Donation for Disaster and Support for

ChildrenIn the Philippines, Manila City and Mindanao Islands were flooded 2012. For the victims, donations from the MS&AD Insurance Group employees (total 3,447 employees) and from the disaster donation matching gift system were gathered (6,616,000 yen). Also, the employees of MSI Philippine’s local subsidiary BPI/MS went to the stricken areas to pass out the donations. Also, BPI/MS is supporting the children in Pasay Boys Town (Manila City) where families are unemployed and cannot afford to feed their children since 2011. As an aid activity, they used the donations gathered within the company and they pro-vided the children with high nutrition lunches and afterwards held fun activities like games and dances.　 　　 　 　 Donation activity for breast cancer and

genetic research　Mitsui Sumitomo Insurance London Manage-ment, MSI's UK subsidiary, which is the local subsidiary of MSI, is supporting research for breast cancer and genetic studies. In October 2012, donation activities were held to gather operation resource of a charity group, and the breast cancer supporters wore pink costumes and genetics supporters wore jeans went around to each office. Many supported these activities and 1,129.31 pounds was gathered. MSILM added the same amount of donation, which totaled to 2,258.62 pounds.　

　 Fostering Greater Team SpiritIn MSIG Singapore, a local subsidiary of MSI, the "T4 Session" was planned to promote further growth by fusing different company cultures progressively after the merger of two corporative bodies in 2010. T4 means Tea, Talk, Team building and Time, and it is an attempt to spread employee awareness about our values, while pro-viding an opportunity for employees to directly talk with executives. 12 individual sessions were held and over 500 employees partici-pated. The CEO responded to almost 200 questions raised by the employees. In the townhall meeting held in October 10th, 2012 that all employees participated in, the CEO emphasized the importance of communication between the employees and management, and all employees swore to become the No. 1 non-life insurance company in Singapore.

Outline of MS&AD Insurance Group

Scene of the musical

Pink costume

Donation of relief funds, Mindanao Islands,Philippines

Certificate from Deutsche Post DHL Townhall meeting

Taiwan Philippines

Singapore

　　 　　 United Kingdom

Indonesia

Germany

Structure

Fiscal 2012 Key Financial Data(consolidated data)

Company Data

Business Development

・InterRisk Research Institute & Consulting, Inc.・MS&AD Business Support Co., Ltd.・MS&AD Staffing Service Co., Ltd.・MS&AD Systems Co., Ltd. ・MS&AD Business Service Co., Ltd.・MS&AD Research Institute Co., Ltd.・ANSHIN DIAL Co., Ltd.

Directly invested affiliated operating companies

MS&AD Holdings is a listed holding company with five directly invested Group insurance companies in Japan: Mitsui Sumitomo Insurance Co., Ltd. (MSI), Aioi Nissay Dowa Insurance Co., Ltd. (ADI), Mitsui Direct General Insurance Co., Ltd. (Mitsui Direct General), Mitsui Sumitomo Aioi Life Insurance Co., Ltd. (MSI Aioi Life) and Mitsui Sumitomo Primary Life Insurance Co., Ltd. (MSI Primary Life); and seven affiliated operating companies: InterRisk Research Institute & Consulting, Inc., MS&AD Business Support Co., Ltd., MS&AD Staffing Service Co., Ltd., MS&AD Systems Co., Ltd., MS&AD Business Service Co., Ltd., MS&AD Research Institute Co., Ltd. and ANSHIN DIAL Co., Ltd.

■Group Organization Chart (as of July 1, 2013)

Mitsui Sumitomo Insurance Co., Ltd.

Aioi Nissay Dowa Insurance Co., Ltd.

Mitsui Direct General Insurance Co., Ltd.

Mitsui Sumitomo Aioi Life Insurance Co., Ltd.

Mitsui Sumitomo Primary Life Insurance Co., Ltd.

(As of March 31, 2013)

MS&AD Insurance Group Holdings, Inc.

Apr. 1, 2008 (Name changed on Apr. 1, 2010)

100,000,000,000 yen

Yaesu First Financial Building,Yaesu 1-3-7, Chuo-ku, Tokyo, Japan

107 (Consolidated number employees: 36,643)

Management of non-life and life insurance companies and companies qualified to become subsidiariesunder insurance business law

Tokyo Stock Exchange (First Section)Osaka Securities Exchange (First Section)Nagoya Stock Exchange (First Section)

www.ms-ad-hd.com/en

CorporateName

Date Established

Paid-in Capital

Headquarters

Number ofEmployees

BusinessDescription

Stock Listing

URL

Net premiums written*

Ordinary profit / loss(△)

Net income / loss(△)

Total assets

Net assets

2,555,551

△96,211

△169,469

1,512,134

14,537,204

2,639,015

150,300

83,625

2,021,625

15,914,663

Fiscal 2012Fiscal 2011

(million yen)

¥2,639 bn

■Outline of consolidated financial statements

■Net premiums written by Insurance Category

* Key sales item of non-life insurance business, which is our core business within the Group.

Total¥2,639 bn

CompulsoryAutomobile Liability¥310.5 bn 11.8%

Other¥327.1 bn 12.4%

Voluntary Automobile¥1,337.1 bn 50.7%

Personal Accident¥222.8 bn 8.4%

Marine¥87.3 bn 3.3%

Fire and Allied¥354 bn 13.4%

We will pursue group synergies by combining our comprehen-sive strengths to provide high-quality products and services that meet the needs of individual customers.

Risk-related

ServicesFinancialServices

Overseas

DomesticNon-life

Insurance

DomesticLife

Insurance

MS&AD InsuranceGroup Holdings, Inc.

MS&AD Insurance Group

Overseas approaches

Outline of M

S&AD Insurance G

roup

〒103-0028　東京都中央区八重洲1-3-7　八重洲ファーストフィナンシャルビル

お問い合わせ先総合企画部　CSR推進室TEL ： 03-6202-5269／FAX ： 03-6202-6882 Mail ： aaa703_csr@ms-ad-hd.com

2013

森林管理協議会(Forest Steward-ship Council: FSC)によって認証された、適切に管理された森林の木材を原料とした用紙を使用しています。

Insurance Group

Digest Version

2013

TEL ： 03-6202-5269／FAX ： 03-6202-6882 Mail ： aaa703_csr@ms-ad-hd.com

Insurance Group Holdings, Inc.

Contact detailsCorporate Social Responsibility Section, Corporate Planning Dept.

Yaesu First Financial Building, Yaesu 1-3-7, Chuo-ku, Tokyo, Japan

This report is printed on paper made from lumber that has been sourced from forests certified as well managed by the Forest Stewardship Council (FSC).