Japanese insurers seeking alternatives to lower hail risks

2024 could potentially exceed ¥150b ($0.94b) in insured losses.

Prior to 2022, Japan’s costliest hailstorm recorded dates back to 24 May 2000 in Kanto region, which saw ¥70b ($0.44b) in insurance claims.

Climate change's influence on hail risks in Japan remains uncertain due to limited long-term data and complex meteorological factors, Guy Carpenter said in its latest insight “Managing Japanese Hail Risk.”

Insurers are implementing proactive measures like hail prediction services and vehicle hail covers to mitigate future losses. Guy Carpenter supports insurers with radar-based hail footprints and risk assessment tools to manage these complex risks effectively.

However, subsequent years have seen unprecedented losses, with 2022 and 2023 alone surpassing this figure, and 2024 potentially exceeding ¥150b ($0.94b) in insured losses.

Severe hailstorms affected Japan's Kanto and Kansai regions from 2022 to 2024. The 2022 event primarily hit Gunma and Saitama prefectures, causing insured losses of ¥100b ($0.63b). In 2023, Gunma Prefecture bore the brunt, with insured losses of ¥78b ($0.49b).

In April 2024, severe hailstorms struck Hyogo, Okayama, and Shiga prefectures, leading to estimated insured losses of ¥150b ($0.94b), affecting over 180,000 vehicles.

($1.00 = ¥159.83)