■ Business Overview of Iric Corporation <7325>

1. Segment Classification

The company operates as an insurance analysis and sales support platform and divides its business into insurance sales business, solution business, and system business. The insurance sales business operates directly managed stores of the first visit-type insurance shop "Insurance Clinic" utilizing the "Insurance IQ System" and expands corporate sales. The solution business develops and sells "AS System" and "AS-BOX" for insurance brokers, banks, and insurance companies (AS Division), and operates the franchise business of "Insurance Clinic" (FC Division). The system business is developing Infodio's "Smart OCR" development and sales.

"Insurance Clinic" provides the best customer service using the "Insurance IQ System." The "Insurance IQ System" is a self-developed system that visualizes life insurance coverage to enable searching, narrowing down, and comparing insurance products. It aims for "too easy" and "too understandable" insurance selection. It has earned high ratings for staff proposals, product range, contract procedures, and follow-up, demonstrating the company's strength and competitive advantage through the "Insurance IQ System."

In January 2023, the "Insurance Clinic" initiated partnerships with the welfare service giants "Perk" (operated by Wantedly <3991>), "WELBOX" (by E-Well Co., Ltd.), "Welfare Club" (by Riro Club Co., Ltd.), and "Life Support Club" (currently Life Support Club) (by Risol Life Support Co., Ltd.). Together with the previously partnered "Benefit Station" (by Benefit One Co., Ltd.), they established a mechanism for over 27.9 million individuals to use the "Insurance Clinic" with benefits. Also, they were certified in February 2023 as an agency that achieved all the basic items of the "Shared Agency Business Quality Survey" started by the Life Insurance Association in April 2022.

2. Insurance Sales Business

The insurance sales business consists of the directly managed store department of the "Insurance Clinic," the corporate sales department, and the RM department. The pillars of revenue are all income from "insurance fees" obtained from insurance company product sales under agency business outsourcing contracts. With their unique services utilizing the "Insurance IQ System," they have achieved high contract renewal rates and customer satisfaction. The corporate sales department offers visit-based sales activities proposing effective use of insurance for corporations and affluent clients. In October 2023, LA, which has 13 insurance shops in Niigata Prefecture and a nationwide channel of 12 branch offices, joined as a subsidiary. In August 2024, they took over 6 directly operated insurance shops from Life Design Co., Ltd. and operate them as "Insurance Clinic" directly managed stores.

They started providing related services utilizing alliances. In June 2022, they launched the free legal consultation service "MIRALLEGAL" for "Insurance Clinic" contract holders with Future Creation Law Firm, and the online pill consultation service "mederi Pill" exclusively for mederi Co., Ltd.'s life support app members. In January 2024, they started providing information on the housing loan comparison service "Mogecheck" from MFS Co., Ltd. at the "Insurance Clinic" directly managed stores. In July of the same year, they started providing a life plan service for couples preparing for a wedding in partnership with Escree <2196>. In January of the same year, they entered into a business outsourcing contract with Izawa Securities Co., Ltd. for brokerage services related to financial products, enabling the provision of financial products such as investment trusts at some of the "Insurance Clinic" directly managed store locations.

3. Solution Business

The Solution Business is composed of the AS division, which develops and sells the 'AS' series as an insurance analysis and sales support platform, and the FC division, which expands the 'Insurance Clinic' franchise.

The AS division provides 'AS System' and 'AS-BOX' to insurance brokers, banks, insurance companies, etc. The 'AS System' is a system for understanding and proposing the current situation of life insurance, and the 'Insurance IQ System' is a system that generalizes the 'AS System'. 'AS-BOX' is an insurance application navigation system, a simplified version system that does not include the security analysis function of already contracted functions within 'Insurance IQ System' or 'AS System'. In May 2023, Hokan Co., Ltd. started API collaboration between its insurance broker customer and contract management cloud service 'Hokan' and 'AS-BOX'. In March 2024, the provision of 'Corporate Security Analysis Function' was started as an option for 'AS System', and in July of the same year, the provision of 'AS-plus' was started as an option for the 'AS' series, which allows quick confirmation of the security content of existing contracts.

Revenue includes system usage fees based on the number of 'AS' series introductions (initial registration fees, monthly subscription usage fees in a subscription model), insurance sales consulting revenue, sales of 'Smart OCR' for financial institutions, and other solution sales.

The introduction of various systems in financial institutions is on an expanding trend. As examples of introductions after 2023, Zexy Insurance Shop introduced 'AS-BOX' in January of the same year. In April, it started providing life insurance security analysis function on an OEM basis to Dai-ichi Life Insurance Co., Ltd. In January 2024, a service called 'IF-InsurTech Fire Insurance AI Scan Service' utilizing 'Smart OCR' was introduced to Docomo Insurance's 'Fire Insurance Detailed Quotation' through joint development with the company, Docomo Insurance (formerly changed in July 2022), and Jai Injury Fire Insurance Co., Ltd. In February of the same year, 'Insurance IQ System', 'AS System', and 'AS-BOX' started API collaboration with NN Life Insurance Co., Ltd.

The number of 'AS System' introductions in banks reached 40 branches by Daichi Bank <8392> in April 2024, and according to the company, the share of 'AS System' in banks nationwide (total of urban banks, trust banks, regional banks, second regional banks, and other banks) reached 32.8% as of February 29, 2024 (according to the latest financial institution numbers by genre from the Nihon Keizai Shimbun). As banks engaging in insurance sales become more common and counter services diversify, the introduction of 'AS System' in banks is expected to increase in the future.

In February 2024, 'Smart Robo Advisor LITE,' which simplifies complicated insurance explanations, was OEM provided to 3 banks under the Fukoka Financial Group <8354> umbrella ((株)Fukuoka Bank, (株)Kumamoto Bank, (株)Ju-Hachi Bank). In May of the same year, the 'Occupational Area Robo Advisor,' a tool providing optimal solutions for insurance for corporate internal agencies and local public bodies, which started sales in June 2022, was renewed and expanded for sale to all occupational markets (insurance brokers handling group insurance).

The FC division provides 'Insurance IQ System' to all 'Insurance Clinic' FC stores nationwide. They also offer support such as education, training, information provision, store operation know-how, promotions, etc., and provide services equivalent to directly operated stores. Revenue comes from initial registration fees, basic fees for system and support use, royalties, insurance commissions associated with joint recruitment, and other service revenues. In April 2022, MX Mobileing Co., Ltd., a subsidiary of Marubeni <8002> and a major mobile phone sales agent (shop operator), opened the 'Insurance Clinic' Kotoe Nagareyama Otakanomori Store. They plan to promote collaboration with an eye on expanding store locations in the future.

(Authored by FISCO guest analyst Masanobu Mizuta)