- Munich Re Specialty launched parametric earthquake insurance for corporate clients in Japan through the Lloyd’s Japan platform.
- The product provides fast liquidity after a seismic event, even without physical damage, using trigger data from Kik-net and K-NET monitoring stations.
- Japan faces about 1,500 noticeable earthquakes each year, creating recurring operational and supply chain risks for businesses.
Munich Re Specialty launched a parametric earthquake insurance product for corporate clients in Japan through the Lloyd’s Japan platform.
The coverage gives companies access to liquidity after an earthquake, according to Munich Re Specialty. The payout structure supports recovery and business continuity even when physical damage doesn’t occur, subject to policy terms, conditions and limits.
The product uses data from Kik-net and K-NET seismic monitoring stations. Munich Re Specialty said it designed the solution for a broad range of industries, including companies exposed to operational delays, supply chain disruption and post-event cash pressure.
Munich Re Capital Partners supports the trigger-based cover. The unit specialises in alternative risk transfer and parametric natural catastrophe business.
The launch came as southern Japan faced renewed seismic activity. A magnitude 7.1 earthquake struck Kyushu Island in Kumamoto Prefecture shortly before 4:30 p.m. local time on July 28, according to news reports.
Japan records about 1,500 noticeable earthquakes each year because of its proximity to tectonic faults, Munich Re said. Larger events often disrupt operations and supply chains, even when insured physical damage claims remain limited.
René Mück, global head of parametric natural catastrophe at Munich Re, said Japan has strong demand for effective risk management. He said Munich Re combines local market knowledge with global parametric natural catastrophe expertise to help Japanese clients measure complex exposures and close protection gaps with fast, transparent coverage.
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.
René Mück, global head of parametric natural catastrophe, Munich Re
