Sompo Japan to offer insurance against internet flamers

New policy will cover damage to reputation from online attacks, regardless of the truth behind the accusations

Sompo Japan to offer insurance against internet flamers

Insurance News

By Gabriel Olano

Sompo Japan Insurance will be offering a new product, known as “enjo” insurance to businesses. This policy will cover loss of reputation from unflattering information going viral on the internet or social media.
“Enjo” is a Japanese term for flaming, or the deliberate posting of hostile messages on the internet due to negative rumours or scandals. Examples include tabloid Friday accusing actor Hiroki Narimiya of cocaine use. This resulted in fierce “enjo” from his fans as well as some incensed members of the general public. McDonald’s Japan also had to deal with “enjo” after a tainted chicken scandal.

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The first insurance product of its kind in Japan, Sompo’s enjo insurance will compensate policyholders, regardless of if the reasons for the attacks are groundless or based in fact. In case of viral negative attention towards a brand or image, Sompo will cover expenses for a positive image rehabilitation campaign, looking into the roots of the negative attention, and offering public apologies, if needed.
Premiums are estimated to be between ¥500,000 to 600,000 (US$4,400 to 5,300), and, of course, if the policyholder’s camp initiates a deliberate trolling attack on themselves, then the claims will be denied.
Image is very valuable in today’s information age, so many insurance providers are moving to offer coverage for brands’ and companies’ online reputations.

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