Hokan Group Acquires Frich
Hokan Group, which aims to become an Industry Contributor by integrating technology and solutions, has acquired shares of Frich, making it a subsidiary. This marks Hokan Group's first M&A and is positioned as an important strategic move for future growth.
Overview and Background of This Transaction
Following the transition to a group management structure on February 3, 2025, the Hokan Group has been operating with two companies: "hokan," a product company, and "CIEN," a solution company.
Frich, which has now joined Hokan Group, provides a P2P (Peer to Peer) compensation model that delivers new compensation beyond existing frameworks to communities in a custom and speedy manner, along with the necessary systems. While Hokan Group has previously focused on "defensive" products targeting corporations through "hokan," this acquisition enables expansion into "offensive" areas that create consumer touchpoints.
Company Descriptions
- hokan: Provides insurance distribution business infrastructure in SaaS format to support efficiency improvement and governance/compliance support for insurance solicitors and agents
- CIEN: Provides professional services leveraging industry expertise and knowledge to support management of insurance companies and insurance agencies
Transaction Rationale
Through this transaction, Hokan Group will propose new possibilities that meet customer needs to the insurance industry, which has growth potential, under a new trinity value co-creation model of "Product × Solution × Creativity."
Frich has the knowledge to create compensation products in areas where it is difficult for traditional insurance companies to enter. It targets groups of 1,000 people or less. Groups of 1,000 people or less do not generally qualify as insurance businesses. Product approval by the Financial Services Agency is not required, and compensation products that meet needs can be developed quickly.
Furthermore, by strategically advancing such M&A transactions, Hokan Group aims to build a platform for insurance industry distribution through the formation of an unprecedented "Hokan Community" across the entire Group in the future.
The Environment Surrounding the Insurance Industry and Significance of This Transaction
In the insurance industry, Hokan Group believes that value provision tailored to each consumer's lifestyle and values is required due to the diversification of lifestyles. Additionally, customer touchpoints are diversifying with the expansion of embedded insurance, and there is a shift from traditional risk coverage to daily support such as employee engagement and well-being support, requiring new mechanisms different from conventional insurance.
In this context, by leveraging Hokan Group's established management and business foundations and further strengthening the services provided by Frich, the Group can respond flexibly and rapidly to the diversifying needs of consumers and the insurance industry.
Hokan Group has previously supported the realization of a society where consumers can properly enjoy the value of insurance indirectly by providing hokan products and CIEN solutions to the insurance industry. Through Frich's services, Hokan Group aims to accelerate the realization of its long-sought goal of "a society where the value of insurance products is properly delivered" by providing value more directly to consumers.
At the end of May 2025, the revised Insurance Business Act was passed by the House of Councillors, and it is expected that customer-oriented business operations will be further strengthened, and the review of insurance solicitation systems and business models aimed at improving transparency and reliability in the insurance industry will rapidly advance. In the insurance industry, which is undergoing major changes at this very moment, Hokan Group will contribute to the insurance industry through various approaches by executing this transaction.
About Frich
An insurtech startup that provides compensation design services and operational platforms in areas difficult to cover by insurance or public assistance.
Specializing in P2P (Peer to Peer) compensation creation where individuals contribute money to each other, the company has mainly supported niche compensation creation in areas such as pets and municipalities.
In terms of management, the company successfully secured Japan's first funding from Plug and Play Japan, one of the world's largest accelerators and venture capital firms, won first place in the Financial Innovation category of the Tokyo Financial Award 2019 hosted by the Tokyo Metropolitan Government, and was selected for "100 Companies Creating Future Markets to Save Japan Under Corona" (Nikkei Business) and "Startup Awards to Change the World" (Nikkei Trendy), attracting high industry attention. Founded in 2018.
Future Outlook
Through this M&A transaction, Hokan Group believes it has established a new business structure as a Group and taken the first step in fulfilling its role as an "Industry Contributor."
Hokan Group will continue to strategically advance M&As, flexibly respond to changes in industry structure, expand the scope of customer support, and strive toward building a platform for insurance industry distribution.
Norbert Gehrke
