Munich Re Specialty, backed by the expertise of Munich Re Capital Partners, has launched a parametric earthquake insurance solution for Japanese corporate clients using the Lloyd’s Japan platform.
Parametric earthquake coverage is reportedly designed to provide liquidity following an event, supporting recovery and continuity even in the absence of physical damage, subject to policy terms, conditions and limitations.
Munich Re explained that the product uses data from Kik-net and K-NET seismic monitoring stations and is designed to support a wide range of industries.
Due to its location near major tectonic fault lines, Japan experiences approximately 1,500 significant earthquakes each year, with major events often causing operational disruptions and supply chain disruptions.
Stephanie Ogden, CEO of Syndicate Munich Re Specialty Global Markets, commented: “This parametric structured product meets real, historic, day-to-day challenges faced by businesses across Japan.
“Our role is to help businesses continue their day-to-day operational practices in the face of the devastating impact of natural disasters. Here we enhance our purpose by enabling rapid claims resolution and leveraging Munich Re’s global collaboration, skills and knowledge.”
René Mück, Global Head of Parametric NatCat at Munich Re, said: “Japan places a strong emphasis on innovation and effective risk management.
“By combining local market understanding with our global natural disaster parameter capabilities, we can help Japanese customers quantify complex risks and close protection gaps with solutions designed to increase clarity and speed. We look forward to building a long-term partnership to support greater resilience across the Japanese market.”
Emma Loynes, CEO of Lloyd’s Asia Pacific, Middle East and Africa and country manager for Singapore, noted: “This is a strong example of Lloyd’s international platform enabling specialist underwriting expertise to reach customers in key markets.
“By combining global venture capital with Lloyd’s Japan’s local channels, we can help the market meet customer needs with innovative, relevant and resilient solutions.”
