HDI Global secures Japan nod for parametric quake coverage

The initiative is in collaboration with Descartes.

HDI Global SE, in collaboration with Descartes, received approval from the Japanese Financial Services Agency to offer next-generation parametric earthquake insurance in the country.

HDI Enablers, HDI Global’s dedicated risk finance division, also supported the initiative.

The parametric solution is designed to address coverage gaps faced by Japanese corporations exposed to earthquake-related risks. 

Unlike traditional policies, this coverage includes losses from property damage, direct and contingent business interruption, and intangible impacts. 

The product features no deductible or franchise payment requirements.

Claims are triggered based on seismic thresholds set by the Japan Meteorological Agency’s Shindo intensity scale. 

Payments are made quickly and based on a straightforward declaration, making it easier for policyholders to recover from disruptions without delays or complex loss assessments.

The policy terms are transparent, with clearly defined triggers and payout levels. 

This is intended to simplify claims processing and expand coverage beyond conventional limitations, particularly for intangible losses that are often excluded in traditional insurance.

The new product will be distributed across Japan through HDI’s network of brokers and agencies. 

Descartes Underwriting’s Director in Japan, Ikuya Shimada, will represent the company locally for this initiative.