Munich Re Specialty launches parametric earthquake insurance for corporates in Japan

Munich Re Specialty, the division of the global reinsurance company that delivers insurance and risk management to industries and global markets, has announced the launch of a new parametric earthquake insurance product through the Lloyd’s Japan platform.

The parametric earthquake insurance is designed for corporate clients in Japan and the trigger-based product will utilise the Lloyd’s Japan platform.

Munich Re’s Capital Partners, the alternative risk transfer business unit of the global reinsurance firm, supported the parametric product design, structuring and development.

With Japan facing significant earthquake exposure, the product from Munich Re Specialty is designed to provide rapid liquidity of funds following an event, using the parametric trigger.

This will “support recovery and continuity even in the absence of physical damage,” the company explained, subject to the terms of policies, certain conditions and limits.

The parametric trigger is based on data from Kik-net and K-NET seismic monitoring stations in Japan and will be available to support a broad range of industries, the company said.

Stephanie Ogden, CEO at Munich Re Specialty – Global Markets, Syndicate commented, “This parametric structured product meets a real, historic and daily challenge for businesses across Japan. Our role is to help businesses continue their routine operational practices in the face of the devastating impacts of natural catastrophes. Here, we enhance our purpose by enabling fast claims settlements and harnessing global collaboration, skillsets and knowledge across Munich Re.”

René Mück, Global Head of Parametric NatCat at Munich Re added, “Japan has a strong appreciation for innovative and effective risk management. By combining local market understanding with our global Natural Catastrophe Parametric capabilities, we can help Japanese clients quantify complex exposures and close protection gaps with solutions designed for clarity and speed. We look forward to building long-term partnerships that support greater resilience across the Japanese market.”

Emma Loynes, CEO of Asia Pacific, Middle East and Africa and Country Manager of Singapore, Lloyd’s further stated, “This is a strong example of Lloyd’s international platform enabling specialist underwriting expertise to reach clients in key markets. By combining global risk capital with local access through Lloyd’s Japan, we can help the market respond to client needs with solutions that are innovative, relevant and resilient.”