Corporate governance is a key component in ensuring the overall soundness of all companies, including insurance firms. The valuation of shares as well as public disclosure and transparency are highly dependent on management’s approach to a sound framework of corporate governance.
In short, during the 2003–2006 period, Japan experienced a virtuous cycle: a recovery in overseas economies, aggressive monetary easing, progress in structural reform, a rise in the potential growth rate of the economy, a sustained economic recovery, and an increase in the medium- to longterm expected rate of inflation (Charts 4-6).