JETRO published the second part of its report on September 16, 2025, providing detailed analysis of Dai-ichi Life Holdings India market business strategy and the establishment of the first Global Capability Center (GCC) by a Japanese life insurance company.
Strategic Background for India Entry
Dai-ichi Life chose India as its second growth market after entering Vietnam as its first overseas market in 2007. Three reasons drove this choice: first, activation of the Indian insurance market following foreign life insurance company entry liberalization (post-2000); second, young population demographics; third, rising national income with economic growth. Statistical data shows life insurance enrollment rates surge rapidly when per capita GDP exceeds ,000, leading to positive evaluation of Indias future potential. In 2007, the company signed a three-party joint venture agreement with two Indian state banks (Bank of India and Union Bank of India) to establish Star Union Dai-ichi Life (SUD).
Challenges and Success Factors in Joint Venture Agreement
The joint venture agreement process proved extremely difficult, requiring over one year for bank identification and tough contract negotiations. The main challenge was clarifying role divisions between banks and life insurance companies, as bank-operated life insurance was still minority practice in India at the time. The turning point came during Finance Minister Chidambarams visit to Japan, when company executives made contact and received bank introductions. The decisive factors for final agreement were Indian government backing and participation of a major local law firm with extensive India success records in contract negotiations. Full-scale operations began in 2009, approximately two years after establishment in 2007.
Performance Expansion and GCC Establishment Strategy
SUDs premium income total has grown consistently from .16 million in FY2014 to .14 million in FY2023. Performance success factors include environmental aspects like increased insurance demand post-COVID and rising middle-class income, and structural aspects like 2021 sales system policy renewal and improved sales efficiency through digital utilization. In June 2025, as the first Japanese life insurance company, Dai-ichi Life signed a multi-year contract with French IT giant Capgemini to establish a GCC in India. The GCC location Hyderabad (southern India) is a region with numerous global top-tier universities and abundant IT talent.
Talent Acquisition and Cross-Cultural Response Strategies
To secure excellent Indian IT talent, Dai-ichi Life has built favorable relationships through partnerships with Indian Institute of Technology (IIT) and University of Pune. At IIT, Japanese professors conduct student lectures, and IIT professors visit Dai-ichi Life to introduce Japanese company attractions to students. At University of Pune, the company supports Japanese language classes. In GCC operations, cultural differences rather than language pose challenges, requiring responses to differences between Japans detailed process management and Indias speed-focused work approaches through bilingual developer employment and hiring schemes for Indians with Japanese cultural understanding.
The article evaluates that Dai-ichi Lifes India strategy comprises innovative initiatives including university partnerships for talent acquisition and GCC utilization, representing an advanced model for overseas expansion in Japans life insurance industry with strategic importance for addressing domestic market contraction due to declining birthrates and aging population.