IRRC Corporation

Business Details

Through the "Hoken Clinic" network of 106 directly operated stores and 200 franchise (FC) stores (306 stores in total), the segment conducts consultation-style insurance sales that compare and propose products from multiple insurance companies. Utilizing the proprietary insurance analysis and search system "Hoken IQ System®," it promotes customer acquisition through web advertising and SNS initiatives and improves in-store conversion rates. Revenue is primarily derived from insurance commissions paid by insurance companies. This segment was split and reorganized from the former "Insurance Sales Business" starting FY2026 (ending June 2026).

Recent Overview

Both store visits and contracts concluded increased significantly, with net sales up 20.1% year on year, showing strong performance

In the cumulative nine months of FY2026 (ending March 2026), the number of store visits at directly operated stores increased 29.8% year on year to 29,443, and contracts concluded increased 17.6% to 16,678, both showing strong performance. Aggressive store openings, including business transfers in July and December 2025, resulted in a net increase of 19 directly operated stores, bringing the total to 106. Sales of specific products such as single-premium whole life insurance and variable insurance remained steady. On the cost side, expenses increased 22.3% year on year due to higher personnel costs and rent associated with the increase in the number of stores, as well as strengthened marketing, but segment profit was secured at ¥645 million (up 9.0% year on year).

Key Products

Growth Drivers

• Continued strengthening of web advertising and SNS initiatives (featuring the Fujioka family) increasing new store visits
• Aggressive net increase in directly operated stores (up 19 from the end of the previous fiscal year), including business transfers (July and December 2025)
• Steady sales of specific products such as single-premium whole life insurance and variable insurance
• Increase in joint solicitation commissions through strengthened web-based customer referrals to FC stores
• Enhanced customer trust through strengthened response to the revised Insurance Business Act (scheduled to take effect June 1, 2026)
• Expansion of the FC network through strengthened new recruitment activities and the incorporation of new entrant companies from other industries

Risks

• Expanding costs due to increased personnel costs and rent associated with the increase in the number of stores (up 22.3% year on year)
• Risk of rising customer acquisition costs due to intensifying competition in the walk-in insurance shop market
• Increased compliance system development costs associated with the enforcement of the revised Insurance Business Act (June 1, 2026)
• Risk of impact on personal consumption and declining store visit demand due to continued price increases
• Risk of FC network contraction due to a net decreasing trend in FC member companies (down 1 company to 106 from the end of the previous fiscal year)
• Slowing growth of the domestic insurance market due to the already high insurance enrollment rate and the progress of the declining birthrate and aging population
• Limited continuity of comparison with historical data due to the segment reorganization from the former "Insurance Sales Business"