Descartes Collaborating with HDI Global for Earthquake Insurance Project
HDI Global SE Launches Innovative Parametric Earthquake Insurance in Japan
HDI Global SE, a leading international insurance provider, has introduced a next-generation parametric earthquake insurance solution in Japan. The new product, developed in collaboration with Descartes Underwriting SA, aims to address the unmet protection needs of Japanese corporations exposed to earthquake-related losses [1][2][3].
A Parametric Insurance Solution for Japanese Corporations
This parametric insurance product is a departure from traditional earthquake insurance, offering several key advantages. It provides coverage for property damage, direct and contingent business interruption, and both tangible and intangible losses [1][2][4].
Automatic Claims Trigger and Simplified Process
Unlike traditional policies, claims are triggered automatically based on predefined seismic intensity thresholds measured by the Japan Meteorological Agency’s Shindo scale [1][2][4]. Once the thresholds are met, a fixed payment is made rapidly based on a straightforward declaration process, bypassing the complex, time-consuming loss adjustment typical in conventional insurance [1][2][4].
No Deductibles and Coverage of Intangible Losses
The product does not require any deductible or franchise payment, unlike many traditional policies [1][2][4]. It also explicitly includes coverage for intangible and non-physical losses, such as contingent business interruptions, which are often excluded under traditional policies [1][2][4].
Transparent and Defined Terms
The policy terms, including triggers and payout levels, are clearly defined and transparent to facilitate ease of understanding and claims processing [1][4].
Distribution and Coordination
The new parametric 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 [1][2][4][5].
A More Responsive and Comprehensive Coverage Solution
This parametric earthquake insurance by HDI Global SE represents a more responsive, transparent, and comprehensive coverage solution compared to traditional earthquake insurance in Japan, emphasizing rapid payouts and coverage for often-neglected intangible losses.
Addressing Climate Change Challenges
The launch of this innovative insurance solution comes at a time when businesses are increasingly threatened by location-specific physical climate risks that could jeopardize their success and future viability. The new parametric coverage is part of HDI Global SE’s ongoing efforts to address the challenges posed by climate change and help businesses navigate the complexities of complying with legal requirements for climate reporting in the insurance industry [6].
[1] HDI Global SE Press Release, 2021. [2] Descartes Underwriting SA Press Release, 2021. [3] Hoyos Integrity Corporation Website, 2021. [4] HDI Global SE Website, 2021. [5] Descartes Underwriting SA Website, 2021. [6] HDI Global SE Sustainability Report, 2020.
- In accordance with HDI Global SE's ongoing efforts to address the challenges posed by climate change, the introduction of the parametric earthquake insurance product demonstrates a commitment to providing a more comprehensive property insurance solution that includes coverage for intangible losses and rapid payouts, essential for regulatory compliance in finance.
- The new parametric earthquake insurance product, developed through collaboration with Descartes Underwriting SA, aims to streamline the underwriting process, making it simpler and faster for Japanese corporations to secure coverage against earthquake-related losses, enhancing the efficiency of technology and property insurance.
- The launch of the innovative parametric earthquake insurance solution in Japan also emphasizes the importance of compliance with legal requirements for climate reporting in the insurance industry, ensuring that businesses realize claims based on transparent and defined terms, thus promoting regulatory confidence in the finance sector.
