Sompo’s Strategic Evolution: Engineering a Global Ecosystem for Wellbeing

Mitsuru Sakoda, General Manager of Global Wellbeing Unit in SOMPO Holdings and GM, Head of Global Business Division in SOMPO Care.

Sourcingcares sat down with Mitsuru Sakoda, General Manager of Global Wellbeing Unit in SOMPO Holdings and GM, Head of Global Business Division in SOMPO Care, to discuss the group's high-stakes transformation under its new "SOMPO Wellbeing" vertical.

On April 1, 2024, SOMPO Holdings officially restructured its integrated financial operations into two distinct strategic pillars: SOMPO Property and Casualty (re)insurance (SOMPO P&C) and SOMPO Wellbeing. While the P&C segment manages a massive global portfolio exceeding US$30 billion in gross written premiums, it is the Wellbeing segment that serves as the group’s primary engine for exporting Japanese societal solutions to both domestic and the global stage.

According to the group’s Mid-term Management Plan (FY2024-2026), the Wellbeing segment is projected to contribute approximately 20% of adjusted consolidated profit by 2030. This shift aligns with a broader corporate trajectory where overseas operations are expected to drive 60% of total group profits. 

The Architecture of the "Wellbeing" Ecosystem

The Wellbeing segment is positioned not merely as an insurance extension, but as a holistic, data-driven ecosystem. "This structure is engineered to mitigate the three concerns of an aging society: health concerns, senior care concerns, and financial concerns after retirement," Mitsuru observed.

This unified platform ensures that seniors maintain both the financial solvency required for retirement and the physical infrastructure necessary for aging in place. Mitsuru detailed the five interconnected business drivers under this umbrella:

SOMPO Himawari Life Insurance: The anchor of the segment, pioneered through "Insurhealth®"—a proprietary fusion of traditional insurance and proactive healthcare.

SOMPO Care: The group's specialized arm for nursing services and senior housing.

SOMPO Care Foods: A specialized nutrition service currently transitioning into a robust B2B (Business-to-Business) platform.

ND Software: A strategic tech acquisition providing the digital backbone for care facility management.

SOMPO Health Support: A B2B2C (Business-to-Business-to-Consumer) provider offering medical screenings and health monitoring for corporate clients.

Strategic Pivot: From Facility Management to B2B Services

A key takeaway from the group's roadmap is the diversification of SOMPO Care’s revenue streams. While the Operator Business (nursing care service provision, facility rentals and senior housing) remains the operational core, the company is aggressively targeting the business services sector, the Platform Business.

"We are pivoting toward high-growth areas such as consulting, software-as-a-service (SaaS), IoT solutions, and specialized training as our Platform Business," Mitsuru explained. Currently representing 10% of revenue, these business services are expected to scale significantly as SOMPO monetizes its operational expertise.

The Innovation Pipeline: Future Care Lab in Japan

SOMPO Care’s technological competitive advantage is anchored by the Future Care Lab in Japan, established in 2019. The lab utilizes a rigorous "Research-to-Implementation" pipeline to vet and deploy high-impact technologies:

Sleep Sensors: Sleep quality and conditions, including vital sign monitoring sensors, are now fully implemented in all SOMPO Care’s nursing care facilities, allowing for real-time condition tracking

Productivity Systems: Digital Care Record systems and medication support tools like Fuku-yakkun streamline administrative tasks

Robotics: The use of family and social companion robots like LOVOT and specialized nursing robots to assist with daily activities

Assistive Devices: Mobility and rehabilitation support tools such as the "LAGUNA" device and the "TANO" system.

Daily Living Tools: Practical innovations like shower devices, smart food heaters, and hair blowers, designed to reduce manual labor for staff.

SOMPO’s technological suite is fully integrated across all facilities, driving a dual strategy of clinical excellence and staff retention. "These technologies elevate care quality and effectively lower employee turnover," Mitsuru emphasized. However, the strategy maintains a firm boundary: "The core philosophy is that technology must augment, not replace, the human element." This efficiency allows staff to reinvest their time into high-value, empathetic interaction, defining SOMPO’s high-touch care standard.

By automating logistics and routine monitoring, SOMPO Care has successfully expanded into the private-pay sector. This allows the company to offer premium lifestyle services—such as specialized housekeeping and concierge assistance—that fall outside the scope of public insurance.

Global Expansion: Securing Talent and Model Scalability

SOMPO’s international strategy is moving on two critical fronts: "The India Initiative" for workforce sustainability and "The South Korean Alliance" for intellectual property export.

• Mitigating the Labor Deficit: The India Talent Pipeline

With Japan’s caregiver shortage projected to hit a deficit of 570,000 workers by 2040, SOMPO Care has established a first-of-its-kind training center near New Delhi. In partnership with several numbers of Indian sending organizations, the nine-month program immerses trainees in Japanese language and SOMPO-style caregiving theory and clinical practice. SOMPO aims to onboard 310 foreign specialists by 2026, creating a resilient talent pipeline for its domestic facilities.

• The KBFG Alliance: Exporting the "SOMPO Care" Framework

In South Korea—set to become the OECD’s most aged society by 2050—SOMPO has formed a strategic alliance with KB Financial Group (KBFG). Beyond consulting, the centerpiece of this partnership is the deployment a proprietary data platform, leveraging AI and big data harvested from the nursing frontlines to optimize care quality and operational efficiency.

Strategic Blueprint for the next country

This combination of asset-light consulting, and international training services serves as the strategic blueprint for expansion into other aging markets.

Seeking Vision-Aligned, Passionate, and Bold Partners: SOMPO Executive Mitsuru said the company is looking for large-scale partners that share its vision for the future of long-term care and have the passion, ambition, and courage to drive industry transformation. To turn this ambitious vision into reality, the partner must also possess a solid financial foundation and the resources for “strong financial support,” enabling them to make the “huge decision” needed to successfully execute the business model. Furthermore, priority is given to partners with extensive experience in care operations and the potential to expand into broader wellbeing businesses. A local partner is viewed as essential to bridging the cultural and linguistic nuances between Japan and the country.

Conclusion: A Resilient Path to 2030

Building on over 20 years of experience in long-term care, SOMPO’s reorganization does not merely shift away from insurance, but expands its identity – establishing two powerful pillars: a global P&C insurer and a pioneering global wellbeing leader.

SOMPO’s Future Care Lab in Japan

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