With the 2020 Tokyo Olympics approaching, Tokio Marine & Nichido Fire Insurance will begin selling terrorism insurance policies in March.
According to a report by Nikkei, this is the first such insurance product in Japan that will cover property damage resulting from acts of terrorism and violent demonstrations.
Due to frequent natural disasters and a stable post-war government, the Japanese market has, for a long time, been focused on insuring risks such as earthquakes and typhoons, and has paid little attention to terrorism or political violence. However, with the country set to host the Olympics this summer, many businesses are looking at insurance especially as they continue to globalise, the report said.
Aside from Tokio Marine, other insurance companies in Japan are looking to offer terrorism insurance in the near future. They will partner with global brokerage Willis Towers Watson to bring the product to the Japanese market.
Tokio Marine’s product is expected to have an annual premium of ¥25 million (US$226,000) and up for ¥10 billion (US$91 million) in coverage.