This is sequel to the Part1, about entry of Hartford Life in Japan. In Part1, story ended when manager decided to enter Japanese market. Part 2 describes Hardford’s strategy to enter “close” Japanese market.
Their strategy can be summarized to two points. One is exploiting customer’s preference insurance than investment, local companies than foreign companies. Hartford downplayed the characteristics of mutual fund, and replaced words of life insurance. Moreover, Hartford sold it through local company to give more relief to customers.
Second is to communicate closely with Japanese government, Financial Supervisory Authority (actually, the correct name is “Financial Service Agency”). Japanese government, always seemed to protect domestic market, usually wants to reform markets that they administrate. In this case, Hartford’s aim to enter Japanese market agreed with the aim of FSA to change Japanese financial market more effectively and completely.
For me, as government official in near future, this case is so meaningful. I believe Japanese system can be changed by exploiting some incentives of existent player.
URL：http://www.fsa.go.jp/
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