Munich Re Specialty launches parametric earthquake cover through Lloyd’s Japan

Munich Re Specialty today announces the launch of a parametric earthquake insurance solution for corporate clients in Japan. The trigger based product utilises the Lloyd’s Japan platform. It is supported by the expertise of Munich Re ‘Capital Partners’, its alternative risk transfer business unit who specialise in parametric Natural Catastrophe.

Japan is impacted by around 1500 noticeable earthquakes each year due to its proximity to tectonic faults. Significant occurrences regularly create operational disruption and supply chain interruption. The parametric earthquake cover provided by Munich Re Specialty is designed to provide access to liquidity funds following an event, supporting recovery and continuity even in the absence of physical damage, subject to policy terms, conditions and limits. The product uses data from Kik-net and K-NET seismic monitoring stations and is designed to support a broad range of industries.

Stephanie Ogden, CEO at Munich Re Specialty – Global Markets, Syndicate said: ‘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 said: ‘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 said: ‘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.’

Notes to editors

• Learn more about Munich Re Capital Partners: https://www.munichre.com/us-non-life/en/solutions/reinsurance/structured-reinsurance.html