HDI Global has collaborated with Descartes Underwriting to offer parametric earthquake insurance in Japan.  

The product aims to fill a gap in protection for corporations exposed to losses of any type arising from quakes. Generali will act as reinsurer.

“It is a privilege to provide this much-overdue protection to our clients in Japan,” HDI Global Tokyo interim MD Casey Sandler said.  

“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.”

The product covers all losses caused by earthquakes, including property damage and business interruption.

A fixed, pre-arranged payment is made when an insured event occurs, based on thresholds under the Japan Meteorological Agency’s Shindo scale of seismic intensity.  

“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,” HDI said.

The product will be distributed through brokers and agencies across Japan. Descartes director Ikuya Shimada will act as local representative.