“Diversity for Corporate Growth” says CDIO Nabeshima at Tokio Marine Group accelarating D&I of Race & Ethnicity, Global Recruitment Strategy and Human Capital Management

Introduction

Tokio Marine Group has increased the percentage of its overseas profit from single digits from 2000 to 54% now, operating in 46 countries and regions, ranked 6th globally regarding non-life insurance market capitalization. Tokio Marine Group is working to promote "integrated group management” within all group companies worldwide.

“Diversity and Inclusion (D&I) is at the heart of the company's growth strategy," says Mika Nabeshima, Executive Officer and General Manager of Human Resources and the group’s first Chief Diversity and Inclusion Officer (CDIO) since 2021. 

In this interview, Hiromi Karahashi, CEO of SPeak Corporation, which operates the young global talent career platform "JPort," discussed with Ms. Nabeshima about Tokio Marine Group's D&I strategies and initiatives as well as the significance and potential of hiring and promoting a diverse workforce.

Who is the "First CDIO, Nabeshima"? Her stories to tackle D&I.

Karahashi: First, could you briefly tell us about your background?

Ms. Nabeshima (Written as Nabeshima): Sure, I joined Tokio Marine & Nichido Fire Insurance Co., Ltd in 1991 as a fresh graduate in a generalist position and have consistently been in charge of claims service. My responsibilities included preventing accidents at companies in various industries, preventing their recurrence, and resolving problems after accidents.

In April 2021, I was appointed as Group Chief Diversity & Inclusion Officer (CDIO) to oversee D&I upon creating the "Diversity Council" to accelerate D&I efforts throughout the Tokio Marine Group.

Karahashi: What triggered you to consider D&I and what were your own experiences about D&I?

Nabeshima: I spent my childhood in the United States. Even as a child, I felt that I was considered a "non-white" person in society, but I could enjoy my school life to full extent because the culture respected individuality and that it was okay to be different from others.

However, when I returned to Japan in the second grade of elementary school, people started telling me "You are different from us”. As a small child knowing that I had a unique upbringing, when people kept telling me I was different, I began to wonder why people treated me so differently.

That was also the case when I joined Tokio Marine Group. I joined the company as a career-track employee, but most career-track employees were men at the time. I felt like people thought I was different and abnormal from the rest of the women because most women who graduated from university chose the usual position as a clerk.

Karahashi: You are the first generation of the Equal Employment Opportunity Law?

Nabeshima: Yes, there were still a few women in career-track positions then. But the good thing was that Tokio Marine Group had a free and open culture, and I could express my opinions openly regardless of gender or hierarchy. It was a great environment for me to work in since I could state my opinion as a businessperson.

Karahashi: That sounds innovative and advanced for a Japanese company back in the day. Were you ever restricted from working because of your gender?

Nabeshima: Soon after I joined the company, I was assigned to work in the claims service division, and some customers would say to me, "Oh our representative is a woman.”

However, day by day, I gradually gained the trust of customers by showing what I could do for them, and I ended up receiving requests from customers saying "We want Ms. Nabeshima to be in charge of this project.” This experience made me realize that it is more important to gain the ability and experience so that customers can trust your capabilities and not just focus on your gender.

D&I is the heart of corporate growth strategy

Karahashi: Tokio Marine Group is actively engaged in overseas business. Could you tell me the reason and aim behind that growth?

Nabeshima: Protecting customers and society in their times of need has been Tokio Marine's purpose since our founding. In order to continue to be such a company 100 years from now, business stability and sustainable growth are essential.

Although our company has grown as a Japanese company, we must consider the growth potential of the market given the continuing decline in Japan's population. Japan is also a disaster-prone country. We have been working to diversify regional operations and business portfolio, as it is hardly possible to achieve continuous business growth if we operate only in Japan.

As a result, we have raised the percentage of profits from overseas operations from single digits in the year 2000 to 54% over the past 20 years. In addition, we now have offices in 46 countries and regions. We believe that business development in both the Japanese market and international markets will lead to achieving Tokio Marine’s purpose.

Karahashi: In the 20 years that your company has been accelerating international expansion, have there been any changes or challenges?

Nabeshima: Over the decades, the market has become more complex and the needs of people have diversified. We have begun to think more and more about the use of human resources, believing that we need a diverse workforce to continue to be a company that can meet a variety of needs from the user and the markets.

Diverse human resources include not just nationalities and gender, but also values and experiences. When people with different ideas come together and create a chemical reaction, it leads to the creation of new values. Based on this belief, we have been working to promote diversity & inclusion.

On top of this, I now feel the urge to accelerate "group-integrated management”. The decision-making and execution process, which until now has revolved around only Japan, needs to be changed to one that makes use of global knowledge.

For example, we have many strong local group companies, such as Philadelphia Insurance Companies (PHLY)  in the United States. How can we leverage the strengths of these independent group companies and create synergies? The challenge is how to turn what used to be "1+1+1=3" into "1+1+1= 5 or even greater.”

Karahashi: What initiatives have you taken so far to promote diversity at Tokio Marine Group?

Nabeshima: To accelerate the promotion of D&I througout the Tokio Marine Group, we created the Diversity Council in 2021, and we are working to foster an inclusive culture and close the gender gap as one of the most imporant issues.

From the perspective of fostering an inclusive corporate culture, we are working to create a work environment where more than 40,000 Group employees worldwide can respect one another and feel comfortable perform their best . One such initiative is the "Majikira-kai," a group of meetings held around the world where members, led by the CEO and transcending divisions, can talk about serious matters in an easygoing manner.

Next, regarding closing the gender gap, we would like to further increase the ratio of women in management positions to 30% or more. To this end, we offer various programs over the course of this challenge such as the "Tokio Marine Group Women's Career College" for female employees, providing them with opportunities to learn about and experience career development. In addition, in daily business operations, there are active discussions about assigning appropriate roles, supporting the development of female managers, and job satisfaction for women.

In addition, we also provide a place for global exchange between companies and personnel from various countries and regions joined through overseas M&A, and an environment where the right person can work in the right place at the right time.

The ideal that we aim for with the acceleration of D&I is to provide an environment in which each individual can maximize his or her power and potential and work in a rewarding manner. Since an organization is a collection of people, the growth of people leads to the growth of the organization. In this sense, D&I is positioned as a growth strategy for our company.

Karahashi: Some corporate leaders are still not quite convinced about the importance of D&I. Could you tell us more about the background behind your company's statement that "D&I is a growth strategy"?

Nabeshima: Insurance is a "People's Business" because it is a business that depends on the people, so an environment where people can trust each other and grow is essential.

In addition, we have been expanding our business not only domestically but also internationally. This means that people with various historical and cultural backgrounds, values, ideas, and religious views become our customers and colleagues. Unless we can communicate with such diverse people and become a company where everyone can play an active role, we will never be able to grow and keep up with the fast-paced changes of the times. If we cannot respond to changes in the world, our competitiveness will decline. This is why we believe in the promotion of D&I as the heart of our corporate growth strategy at Tokio Marine Group.

Karahashi: While listening to what you just said, I remember Professor Takashi Iwamoto of Keio University's Graduate School, with whom I recently had an interview, explaining two types of diversity: "demographic diversity" and "cognitive diversity”. According to Professor Iwamoto, demographic diversity is diversity related to visible variables like gender, age, nationality, and so on, while cognitive diversity is diversity related to invisible orientation characteristics, individuality, skills, and experience. Professor Iwamoto claimed that cognitive diversity is necessary for corporate growth and that we need to increase demographic diversity to foster such a culture, especially in an ethnically homogeneous country like Japan. I felt that this is similar to what you just mentioned. (Reference: Article on the dialogue with Professor Takashi Iwamoto)

Nabeshima: Yes, that is so true. I think that people in Japan still do not see the value that "differences" can bring to society. I would say that the majority of Japanese people are comfortable with staying the same. I think this was a good thing during the economic high-growth period, but over time, I feel that it is one of the factors of the stagnation of the Japanese economy.

In this sense, Japan must start by acknowledging "differences”. Then, it would be good to consider how to include differences and how to make each individual plays an active role. I also believe companies must position D&I efforts not as "just a nice-to-have" but as a "growth strategy to strengthen the company”.

Tokio Marine’s Global Recruitment Strategy and Learning & Development Worldwide

Karahashi: Tokio Marine Group published its first "Human Capital Report" in June 2023. I was quite impressed with the report since it not only described your policies on D&I and global recruitment but also specifically mentioned numbers, figures, and actual actions you took. This reflects your company's attitude toward human capital management and shows that you consider it to be a "People's Business”. While "Human Capital Reports" are commonplace overseas, there are still very few Japanese companies that publish such reports. Could you tell us why your company published the Human Capital Report?

Nabeshima: As we promote D&I as our growth strategy, I believe it is essential to disclose our efforts in the form of a "Human Capital Report” to all stakeholders out there.

In the past, we have mentioned human resources in our annual reports, but the information we could convey was limited because annual reports contain comprehensive information on management. On the other hand, we have been focusing on hiring and training a diverse range of human resources based on our belief that "people are the source of our competitive advantage”. We decided to publish the "Human Capital Report" in the hope of properly disclosing and conveying our thoughts, initiatives, and stories about our human resources.

Tokio Marine Group has released its first "Human Capital Report" for 2023. The 88-page report describes how the company will engage in "human capital management.

Karahashi: The "Human Capital Report" mentions a great deal about the recruitment and onboarding process of global human resources. What are your thoughts on this?

Nabeshima: We have been expanding overseas by bringing in great companies with unique strengths that have been successful both domestically and internationally who fit our culture to join the Tokio Marine Group. With this background, we believe that each group company should be strong and maintain their autonomy. On the other hand, there are many good practices that can be optimized and horizontally shared among group companies. For example, if multiple companies are doing similar lines of work, the knowledge and know-how can be shared and collaborated among group companies, and the group as a whole can implement best practices.

Of course, local operations must continue in the countries and regions where each group company operates. However, I believe that if we try to bring together people with expertise, knowledge, and good ideas that are generated in these operations, it will lead to the growth of the group. With this in mind, we are working on cross-border exchange among group companies and global role allocation among different regions and countries in Tokio Marine Group.

Karahashi: I was surprised to interview a foreign employee of your company the other day. He used to work for a U.S. group company Tokio Marine Group which was acquired some years ago, and is now participating in the Tokio Marine Group's "Global Human Resources Development Program”. It is very rare to witness such exchanges and transfers between group companies without any boundaries between Japan and overseas or parent companies and subsidiaries. How can Tokio Marine Group integrate such exchanges of human resources?

Nabeshima: We cannot create synergy and innovation among Tokio Marine group companies if we do not know the good practices or talents of group companies worldwide. For this reason, we are trying to increase opportunities for communication among group companies. We are also actively promoting the development of communication not only among the management and leadership of each group company, but also among junior employees beyond the boundaries of each group company.

One such program is “Tokio Marine 2100” (TM2100). This is an online workshop that brings together junior members from around the world, with about 750 participants in total. We had a global training program before starting TM2100, but the members who could attend were limited to managers of group companies because it was held offline in Japan. We thought about how we could provide an opportunity for junior-class members of Tokio Marine group companies which led to the establishment of this online program.

TM2100 was held for the first time in 2020, approximately 120 junior members from the United States, Middle East, Asia, Europe, and all regions participated. The participants have discovered what kind of companies existed in the Tokio Marine Group. This is the fourth year of the program, and understanding of the various companies within the Group and awareness of the possibility of working for a different Group company, if desired, is gradually spreading throughout the group.

Of course, there are those who wish to continue working locally. However, I think it is important to provide the options to take on the challenge of building a global career within Tokio Marine Group for those who wish to do so.

Another initiative is the Management Associate Program (MAP), a cross-group program designed to recruit and train students and young professionals with actuarial, finance, and other specialties in their backgrounds. Participants in the program rotate through multiple Tokio Marine Group companies, divisions, and teams over a two-year period to gain expertise and a global perspective.

We run this program with the hope that employees who complete MAP program will become an executive of overseas operations in the future. In any case, we are operating this program with the expectation that the MAP graduates will become human resources who will support the integrated management of Tokio Marine Group.

How a Japanese Company Can Attract Global Talents

Karahashi: According to "Diversity wins: How inclusion matters" by McKinsey & Company, companies that tackle racial and nationality D&I have 35% better management performance than those that do not. What are your thoughts on the meaning of promoting D&I, especially in terms of "nationality," and its impact on management?

Nabeshima: In our case, more than half of our business profit is generated overseas, so we need to formulate a group strategy that includes overseas group companies, create synergies, and grow as a group. Insurance is also a regulated industry, so we need to ensure that governance is effective. However, all of the things I mentioned will not work if we bring only a Japanese perspective.

Tokio Marine Group is a collection of many local businesses all over the world, so if someone without local knowledge proceeds with the project, there is a risk of making a wrong judgement in the strategy for global corporate growth. That is why we have to come up with global growth strategies by keeping the balance between local and global perspectives at all times.

Moreover, people with various historical and cultural backgrounds, values, ideas, and religious views are Tokio Marine Group’s customers and colleagues working together. In this context, promoting the diversification of nationalities at our head office in Japan is one of the most important initiatives.

Karahashi: From time to time, I hear HR managers of Japanese companies saying "Global talents and excellent young foreign talents would not come to Japan," or "Japanese companies are not going to be chosen by them.”  Let me ask you frankly. Do you think Japanese companies are not attractive?

Nabeshima: I don't want that to be the case, but rather I would like to think about how we can become an attractive company. At Tokio Marine Group, we also acknowledge that there are things we need to improve in order to become a more attractive company for global talents.

In particular, globalization of communication is a challenge. Since our foundation, Tokio Marine & Nichido has been the driving force behind our company as the core company within the group, so the way we do things and our philosophies still have the characteristics of a Japanese company. With an increasing number of group companies outside of Japan, the number of global employees has also increased which has enabled us to incorporate various opinions, yet there are still communication issues. For example, most documents are written in Japanese, and English documents are created only when people overseas are involved. I do not think it is necessary to make English an official language of our company, but I do believe that efforts should be made to create borderless communication with Tokio Marine Group companies in Japan and overseas by providing documents in English.

Also, when a project is going on with members of an international group company, the members in Japan sometimes get together to make a decision leaving the international group company behind because of the time difference. Of course, there is no intention on the part of the Japanese members to exclude international group companies, but there are cases where this happens as a result. However, I think that feedback should be provided on the circumstances of the decision, what kind of meetings were held, and whether the decision was made after taking into account the opinions of those who could not participate in the meeting. This is a very obvious point, and I believe there is still room for improvement.

Karahashi: It may lead to a decrease in motivation especially for the employees who have ownership to take initiatives if some decisions are made without their knowledge.

Nabeshima: Yes, I believe that we need to implement a system that maintains the motivation, which may sound like an obvious thing. I would also like to foster a sense of inclusion of members working overseas as members of the Tokio Marine Group, rather than treating them as advisors or pinch hitters.

In order to improve this issue, we are currently working to increase the number of non-Japanese personnel from overseas to a certain number on the Tokio Marine Group head office side. It is often said that a certain percentage of the parties involved must be present to create a climate of acceptance, aka “critical mass”. For example, when thinking about increasing the number of female managers, it is no good if only one of the many managers is replaced by a woman; people often say that the idea and measures for the promotion of women’s empowerment will function when there are about 30% women in management positions.

In order to recruit global talents that exceed the critical mass, we internally recruit global talents from the group companies, hire young foreign graduates, and create a hiring and training system that enables diverse people from various routes can excel as a member of the Tokio Marine Group.

Karahashi: It is truly a great initiative to promote D&I worldwide. I believe that some of the people reading this article are young global talents who want to work globally. Could you give a message to them?

Nabeshima: I believe that you need to be able to adapt quickly to various changes that occur around the world at such a fast pace if you want to become successful in a global setting. So, stay open-minded, flexible, and resilient to different cultures. The ability to respect diverse people in the world and take action will probably be a very useful mindset no matter what industry you work in. We hope you will brush up on your ability to compete and win in such a complex and fast-changing environment.

Karahashi: Thank you for sharing your valuable insights and stories with us today.

Profile

Mika Nabeshima

Executive Officer, General Manager of Human Resources Department, Chief Diversity Inclusion Officer at Tokio Marine Group, Inc.

Nabeshima spent her childhood in the U.S., returned to Japan and graduated from Davidson College in the U.S. She joined Tokio Marine & Fire Insurance Company (now Tokio Marine & Nichido Fire Insurance), where she was assigned to the Corporate Claims Department. After taking childcare leave twice, she was transferred to Kobe in 2000, New York in 2003, and Los Angels in 2006. After taking childcare leave twice, Transferred to Kobe in 2000, she was stationed in the U.S. for 7 years, first in New York in 2003, and then in Los Angeles from 2006. 2010, Commercial Claims Department; 2014, Saitama Claims Service Department; 2017, Senior Vice President of U.S. local branch; 2007, General Manager of Tokio Marine Group Human Resources; and from April 2021, as the first Chief Diversity & Inclusion Officer.

Hiromi Karahashi

Representative Director and CEO, SPeak Corporation

Born in Kanagawa, Japan. At age 16, Karahashi studied abroad to the U.S. by himself as a high school student and graduated from the City University of New York School. He was also involved in the management of the Boston Career Forum, where he saw the potential for diversity among talented young people around the world. After graduating from university, he returned to Japan and worked in the sales strategy department of Daikin Industries, Ltd. After 6 years at Daikin, he studied at the Keio University, Keio Business School for MBA degree. Karahashi founded SPeak corp in 2019 to update Japanese economy and promote D&I of race and nationalities in Japan. SPeak corp produces and operates "JPort Match," a recruitment and PR platform for global new graduates and young mid-career professionals to gather information and select companies based on diversity management and inclusive workplaces such as overseas expansion and hiring multinational employees.