The Insurance Division is best summarized by a selection of apparent contradictions :
| Long Hsitory |
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Contemporary Approach |
| Japan Specilaists |
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Global Expertise |
| Independent |
but |
Partners Worldwide |
| Compact |
but |
Broad Vision |
| Niche Business Focus |
but |
Overall Capability |
First of all we dabble in the big pond of the history of Cornes. It is not merely pride in the past which drives us in this direction. Essentially, insurance is a long-term relationship sort of business and not merely an annual transactional event. It is important therefore for both existing and potential customers to understand that Cornes is by no means an organization which will be "here today and gone tomorrow".
By now you are doubtless aware that Cornes established in Japan in 1861. We are unaware of any other foreign entity still operating in Japan which has a longer history. Like other foreign trading companies of the time Cornes drifted into the insurance business almost as a matter of necessity. Quite simply, there was no insurance industry in Japan until the Tokio Marine - Japan's largest non-life insurer - established operations in 1878.
But Cornes needed protection for its imports and exports, and in due course the Company was appointed by the Commercial Union in 1864 to act as its managing agent. This followed in 1868 with the appointment by Lloyd's of London to be their agents in Japan. This principally involved intelligence and maritime survey and claims services for the Society. Currently, this area of responsibility falls in the realms of the Maritime Division.
Let us simply skip the next 120 years - business went mincingly on except for an unavoidable break of a few years in the 1940's.
In the mid 1980's the authorities increasingly insisted on conformity within the insurance industry. This meant that Cornes, along with other trading companies, were encouraged to give up their roles of effectively managing an insurance underwriting operation in Japan. In 1989 therefore Cornes came to an amicable understanding with the Commercial Union, and effective 1st January 1990 they established their own independent branch office in Japan.
Would Cornes just leave this void in their insurance operations ? No - they most certainly did not ! The management at the time felt that the wind of change was already blowing. Pressure was already mounting from the Americans and others to deregulate the tariff market system. It was decided therefore, the very day after the Commercial Union representation ceased, to invest in professional intermediary services and to build solid foundations in time for the inevitable deregulation.
Enough of the history and background ! Hereinafter we explain all about the modern Cornes Insurance Division and what it can do for you.
The Division is staffed by qualified and experienced professionals. There is continuity - the core management team have been together for over a decade. We are independent Japan only specialists. We also have the power of a global network of like-minded independent professional intermediaries at our fingertips. This network is known as Assurex Global. Founded in 1954, Assurex Global is the world's largest privately-held risk management, commercial insurance and employee benefits brokerage group. Over 20,000 professionals in more than 550 offices on six continents work to provide seamless client service through the broker-owned independent network. Assurex Global Partners -- only one per market -- are selected based on capability, integrity, growth potential, quality and breadth of services. Cornes is pleased to be an Assurex Global Partner, selected following an extensive evaluation process by the Board and the shareholders of the corporation. As a Japanese shareholder of Assurex Global, Cornes is able to provide global services as necessary for our Japan based clients. For more information about Assurex Global, please visit www.assurexglobal.com.
Having established what we are it is obviously pertinent to be absolutely clear over what we do. First and foremost we represent the buyer and we never lose sight of this basic fundamental. Our focus is Industrial and Commercial insurance programmes only. But we will handle personal business for staff of clients if so required. In such circumstances the same professional approach is undertaken.
Our mission statement is to provide an integrated overall approach to risks and insurance for our Industrial and Commercial client base. Our expertise therefore extends through the entire range of General Insurances and into the topical subject of Employee Benefits. (Group Life Insurance and Group Long Term Disability Insurance etc.) How do we go about our work ?
We work without preconceived notions. Indeed we basically view insurance (risk transfer) as the purchase of last resort when it comes to business exposures. It is stressed however that a different "modus operandi" applies in respect of Employee Benefits, where the Human Resources function will have different objectives in mind relating to the welfare of staff and their families. Further, and in particular, a disproportionately aging society in Japan combined with government driven changes in the Pensions business has caused greater focus on proper provision for retirement. In 2002, Cornes was appointed the Japan partner for International Benefits Network (IBN), a world-wide association of employee benefits experts including actuaries, consultants and brokers. This appointment is further recognition of our solid reputation in the employee benefits area and expertise in the local Japanese market.
Our method of operation is to encourage the management of risks to eliminate or reduce as much as possible before considering risk transfer through insurance. Our best and most satisfied clients are those which devote time and resources to Risk Management and Insurance matters. In this way we find that the overall benefits accruing are far greater than the sum of the efforts expended.
The corporate client base of Cornes is both extensive and diverse. It stretches from a substantial number of well-known financial institutions through to trading companies and into manufacturers of advanced petrochemical products. All of these enjoy a personal service from a designated account executive plus a hand-picked support team.
You can see from the newspapers how Japan is becoming increasingly litigious - we can expect an increasing incidence of employee suits against employers, and larger Products Liability awards. The old days are gone and the pursuit of individual rights is beginning to parallel the situation in the west.
Equally, Japan is very much subject to unavoidable natural catastrophes. Residents in this country know full well the devastation and havoc which can be caused by both Earthquakes and Typhoons. It is not generally known, by the way, that Typhoon Bart (September 1999) which battered Kyushu and Chugoku was the second largest insured loss ever sustained in Japan. The Kobe Earthquake in 1995 killed over 6,000 persons and devastated many properties and businesses. Cornes were ahead of the game ! Every Cornes corporate client in the Kansai ("a major Earthquake will not happen there" - some pundits said) enjoyed 100% Earthquake protection at economical prices (it was not considered a high risk area - remember). All claims were paid in full.
One satisfied corporate client, in the business of supplying motor vehicle parts and accessories, confirmed that but for the protections put in place by Cornes the head office would have shut the business down following the Earthquake. The client was paid to reinstate destroyed or damaged Contents with new items. ("New for Old"). Imported Stock destroyed or damaged was settled at CIF plus 10%, and a further payment dealt with the projected Loss of Gross Profit. A satisfied client is the best advertisement and Cornes have continuously benefited from referals.
Actually we know all about Earthquake losses here at Cornes - our Kobe office was wiped out in 1995, and two further premises have been severely damaged in Hokkaido following separate Earthquakes in that area. We were properly insured and made full recoveries.
It is a buyers market these days - deregulation is here to stay. Look around you and see what is going on. Major Japanese Non-life insurers are merging - they have to. In the old tariff market their expense ratios were too high by international standards, and now something has to be done. Deregulation means competition, and competition means efficiency and survival of the fittest. It is no wonder that in the last year 3 well-known global insurers have given up with their small Japan branches.
But new opportunities also bring new responsibilities for professional intermediaries such as Cornes. Security of insurers - especially so in the Life Insurance market - can no longer be taken for granted. Cornes are therefore very selective over insurers as security will be an increasing issue over future years. Remember - security first and then the best pricing second.
You will be surprised at the attractive deals now available from both Japanese and Foreign insurers to protect you against catastrophe risks. For example, you can work with us to estimate your Maximum Possible Loss (MPL) following an Earthquake, and simply buy a protection for that amount alone instead of the full value of all your insurable assets. This is known as the "first loss" approach. Of course this sort of thing has been readily available in the USA and Europe for years, but now it is your turn also.
Bring your multifarious risk problems to Cornes and we will assist you in finding a modern and equitable solution. Do you have trouble in recruiting and retaining key staff for example If so, let us demonstrate to you the added value of a tailor-made insured Employee Benefit programme. The bulk-buying thereof provides benefits to staff which would be beyond their means if purchased individually.
Remember the unique features of the Insurance Division.
| Long Hsitory |
but |
Contemporary Approach |
| Japan Specilaists |
but |
Global Expertise |
| Independent |
but |
Partners Worldwide |
| Compact |
but |
Broad Vision |
| Niche Business Focus |
but |
Overall Capability |
