Mutual Aid & Cooperative

Consultation of Set-up and Operation of Mutual Aid Associations

Mutual aid is a system for helping and supporting each other within the community.
Mutual aid associations established in Japan may be either publicly licensed cooperatives or entities exempt from the
Insurance Business Act (a.k.a., exempt kyosai), which are subject to different procedures for formation or operation.
In either case, we can provide seamless services from formation to operation.

• What is a publicly licensed cooperative?

  As a primary insurer, a publicly licensed cooperative sets up a small amount and short-term insurance company,
  institutional mutual aid association, self-insurance cooperative (e.g., in-house mutual fund), guarantee company, or other entity to provide coverage.

• What is an exempt kyosai?

  Exempt Kyosai is a type of mutual aid associations other than the publicly licensed cooperatives. These are exempt insurance business operators as specified by Japan’s Insurance Business Act.
  An employee assistance fund set up in a company or educational institution is a kind of exempt kyosai. If the number of people insured by a mutual aid association does not exceed 1,000, it is treated as an exempt kyosai as well.

Our services for
mutual aid associations are
targeted at
the following customers

• Organizations that consider
  operating amutualaid plan jointly with
  other organizations

  

  A business cooperative is an ideal choice for those considering a coverage plan for your industry or community unit.

• Companies that want to enhance
  employee welfare benefits

  

  If a company intends to develop its own healthcare plan as part of its employee
  welfare benefits, we recommend using a scheme of exempt kyosai.

• Enterprises operating a
  mutual aid association

  

  If an enterprise needs to address some issues in its operation of an existing mutual aid association or wants to outsource its
  operation, we can provide adequate support.

Case Studies

• 

  Development of a mutual aid plan aiming to enhance employee welfare benefits

  • We designed a welfare benefit and medical aid program for employees of a global enterprise.
  • Before introducing this program, the group’s employee welfare benefits were limited only to those statutorily required, and employees injured in accidents had to pay 30% of medical bills for treatment of their injuries.
  • Since introducing the medical aid program for their employees, the burden of self-payment has been reduced and the level of employee satisfaction has drastically improved. All employees of all branches worldwide are eligible under this program, and the customer has succeeded in improving the efficiency of their group-wide HR management.

• 

  Development of new insurance products as a marketing tool for a publicly licensed cooperative

  • We examined a mutual aid association of their existing insurance products. In addition, we checked the coverage necessary for them to grow as a cooperative.
  • After the development of new insurance products for enterprise members, this mutual aid association can utilize those products as a marketing tool for acquiring new members.

• 

  Coverage for groups in the same industry

  • Setting up a business cooperative is a way to address the risks specific to the industry.
    By insuring such specific risks through a mutual aid approach, the business cooperative can help promote their strength as an industry.

• 

  Enterprises with a client base covering a small number of loyal customers

  • The enterprise set-up an exempt kyosai for insured persons not exceeding 1,000.
    Due to an increase in the number of policyholders, the exempt kyosai converted to a publicly licensed cooperative.

Consulting services for setting up and
operating mutual aid associations

We can propose various types of mutual aid associations suited for any potential risks and business sizes. Sample types are:
1) The customer, as a primary insurer (insurance underwriter), sets up a SASTI company, institutional mutual aid association, self-insurance cooperative (e.g., in-house mutual funds), guarantee company, or other entity to provide coverage.
2) The customer sets up an entity consisting of insured persons, rather than acting as a primary insurer, and asks an established insurance company to provide coverages.
In either case, we consider both the advantages and disadvantages and propose the best available scheme to each customer.
Regardless of whether you set up a new insurance facility or already have an existing facility, we analyze issues to be addressed and support its operation under the scheme in place.

Bespoke Services

• Support for setting up a mutual aid association

  Whether it is a publicly licensed cooperative or an exempt kyosai, we can provide extensive support for the set-up; from documentation to formalities.

• Product development in collaboration with actuaries

  As is the case with products offered by conventional insurance companies, our product development relies on mathematical grounds, as verified in collaboration with our in-house and partner actuaries.

• Introducing mutual aid operation systems

  Since mutual aid operations cannot avoid the handling of personal and other sensitive information, using appropriate information systems is essential. We can propose various types of information systems based on the size of your mutual aid association.

• Reinsurance arrangement

  Many mutual aid associations utilize reinsurance to ensure stable operation and as a credit enhancement instrument. Taking advantage of our strength backed by our global networks, we can support our customers’ reinsurance arrangements.

• Contract administration and settlement with reinsurers

  Since insurers must work with reinsurers on a regular basis for contract administration, payment, and settlement operations, we can assist customers to facilitate such operations. If you ask us to arrange reinsurance, we will perform the needed administrative work, with experienced reinsurers doing it on your behalf.

• Support in operating a mutual aid association

  After setting up a mutual aid association, problems in operations may occur. We have technical experience in operating many publicly licensed cooperatives and exempt kyosais to help customers in this process.

How it works

• 

  Analysis to determine the recommended scheme

  Whether to choose a publicly licensed cooperative or an exempt kyosai depends on the coverage you want and your target market.
  After receiving sufficient information, we analyze your situation and determine a recommendable scheme.

• 

  Deciding on coverages

  After confirming your needs and risks, we discuss with actuaries and reinsurance market.
  If we can confirm that your risks can be insured, we calculate estimated insurance premium rates and prepare documents that propose policy conditions and other information.

• 

  Setting up a mutual aid association

  After determining insurance coverages, we help you hold an organizational meeting for setting up a mutual aid association. If it is a publicly licensed cooperative, formalities with the competent authority will follow; if it is an exempt kyosai, the kyosai will be set up in accordance with legitimate procedures.

• 

  Operation of the mutual aid association

  The operation of the publicly licensed cooperative starts after it is licensed by the competent authority. For the case of exempt kyosai, it starts after the conclusion of its organizational meeting, as the case may be. We provide full-range services to support your operation.