Descartes Collaborating with HDI Global on Earthquake Insurance Project
HDI Global SE, in partnership with Descartes Underwriting SA, has introduced a groundbreaking parametric earthquake insurance product in Japan. This innovative solution, approved by the Japanese Financial Services Agency, aims to fill coverage gaps for Japanese corporations exposed to earthquake-related losses.
Ikuya Shimada, Descartes' Director in Japan, will act as the local representative for this initiative. The product will be distributed through an extensive network of experienced insurance brokers and agencies across Japan.
The insurance covers multiple types of losses, including property damage, direct and contingent business interruption, and non-physical impacts. Unlike traditional insurance, this product does not require a deductible or minimum loss amount.
The coverage operates on predefined triggers based on seismic intensity readings from the Shindo scale by the Japan Meteorological Agency. When the set seismic thresholds are reached, fixed payouts are made swiftly following a straightforward claims declaration, enabling faster processing than traditional insurance.
Policy terms, including claim triggers and payout conditions, are clearly defined and accessible, simplifying the claims process. This parametric approach also facilitates coverage for non-physical losses that conventional models may not address.
HDI Global SE has also developed an insurance solution for Hoyos Integrity Corporation, a US company specializing in digital services and secure storage of digital assets. This solution reinforces the "Hoyos Promise of Security" for Hoyos' hot wallets used for storing bitcoin and other digital currencies.
As climate reporting for insurance brands becomes more complex due to the increasing location-specific physical climate risks threatening business success and future viability, HDI Risk is keen to improve climate reporting to comply with legal requirements.
[1] Source: HDI Global SE Press Release, [date] [2] Source: Descartes Underwriting SA Press Release, [date]
- Underwriting, regulation, and finance play crucial roles in HDI Global SE's partnership with Descartes Underwriting SA to develop a parametric earthquake insurance product, ensuring compliance with the Japanese Financial Services Agency's regulations for the newly introduced insurance product.
- In the business of property insurance, HDI Global SE has introduced a parametric earthquake insurance product that, unlike traditional insurance, offers coverage for multiple types of losses without requiring a deductible or minimum loss amount, and features a claims process that is simpler due to predefined triggers and payout conditions.
- HDI Global SE's venture into the digital assets industry involves the underwriting of a solution for Hoyos Integrity Corporation, a US company specializing in digital services, providing finance for the secure storage of digital assets like bitcoin, thereby reinforcing the "Hoyos Promise of Security".
