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Munich Re Specialty debuts parametric earthquake cover for Japan corporates
The product is built to speed access to liquidity after an earthquake using seismic data, even when physical damage is limited.
Munich Re Specialty has launched a parametric earthquake insurance solution for corporate clients in Japan, delivered through the Lloyd’s Japan platform, with support from Munich Re Capital Partners, the company said. The coverage is designed to provide access to liquidity funds after an event to support recovery and business continuity, even in the absence of physical damage, subject to policy terms, conditions and limits.
Munich Re said the product uses data from Kik-net and K-NET seismic monitoring stations and targets a broad range of industries. The insurer also noted that Japan records around 1,500 noticeable earthquakes each year, with major events often disrupting operations and supply chains.
Munich Re Specialty CEO Stephanie Ogden said the structured product addresses a “real, historic and daily challenge” for businesses by enabling faster claims settlements, and emphasized collaboration across Munich Re. Lloyd’s CEO Emma Loynes said the launch shows how Lloyd’s international platform can connect specialist underwriting expertise with clients in key markets.