The Japan branch of Germany-based corporate & specialty insurer HDI Global SE, part of Talanx AG, has received regulatory authorization in Japan to offer parametric earthquake insurance.
HDI Global collaborated with Paris-based Descartes Underwriting SA, a leader in corporate parametric insurance solutions for natural catastrophic risks. To develop the product, HDI Global leveraged its division dedicated to Risk Finance solutions, HDI Enablers.
This parametric coverage has been designed to meet the protection needs of Japanese corporations exposed to losses of any type arising from earthquakes. The product provides insurance against all losses caused by earthquake, including property damage, direct and contingent business interruption, both tangible and intangible. Furthermore, no deductible or franchise payment is required.
Structured by Descartes, the natural catastrophe coverage can swiftly pay a fixed, pre-arranged claim when an insured event occurs. Claims are triggered based on thresholds measured according to the clearly established Shindo seismic intensity of the Japan Meteorological Agency. Critical to insureds, claims are paid based on a simple declaration with notable speed, and intangible losses are easily covered in comparison to traditional insurance products. Triggers and coverage levels are outlined in a transparent, straightforward policy wording.
This new parametric earthquake coverage will be distributed through an expansive network of experienced insurance brokers and agencies across Japan. Descartes’ Director in Japan, Ikuya Shimada, will act as Descartes local representative for this initiative.
“The Japanese insurance market landscape is in the middle of a structural change. Regulatory bodies are fostering heightened competition amongst major local insurers and encouraging the introduction of new insurance solutions to further improve customer protection,” commented Dr Dirk Höring, member of the HDI Global SE Executive Board, responsible for property insurance, engineering insurance, marine insurance, HDI Risk Consulting, in a statement.
“Acting as the preferred Partner in Transfor mation for our clients, the timing is ideal to deliver this innovative parametric earthquake solution and address longstanding coverage gaps in the Japanese market,” Höring added.
Casey Sandler, interim managing director of HDI Global’s Tokyo office, said: “It is a privilege to be able to provide this much overdue protection to our clients in Japan. The ever-present earthquake risk in Japan remains a challenge for businesses. Now the aspect of a coverage gap is drastically reduced by our innovative parametric solution.”
“Descartes is honored to further contribute to the resilience of the Japanese economy, given the suitability of our core parametric approach to earthquake risk,” according to Violaine Raybaud, chief operating officer of Descartes Underwriting. “We are pleased to collaborate with HDI Global alongside our strategic partner Generali Global Corporate & Commercial, which will act as a key reinsurer of this new product. Together we have delivered a step-change in earthquake protection to the benefits of Japanese insurance ecosystem.”
About HDI Global SE (HDI)
In addition to HDI Global’s prominent position in the German and broader European market, the company has access to its own worldwide HDI Global Network covering more than 175 countries through its own HDI foreign branch offices, subsidiaries, affiliated companies, and network partners. HDI Global SE leads roughly 5,300 international programs and offers its multinational clients compliant coverage worldwide.
As the corporate & specialty division of the Talanx Group, HDI employs more than 5,000 employees and generates gross insurance revenue of approximately €10.0 billion in the year 2024 (according to IFRS 17).
Source: HDI Global and Descartes
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