ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Business deals

Eyeing climate change, Japan's Sompo to buy Italian crop insurer

Extreme weather boosts demand for agricultural coverage

A wheat farmer in France. Crop insurance can protect against extreme weather and market fluctuations.   © Reuters

TOKYO -- Japan's Sompo Holdings has agreed to acquire Italian agricultural insurer Assicurazioni Rischi Agricoli VMG 1857 as climate change drives demand for protection against increasingly frequent and severe extreme weather events.

ARA provides coverage against weather-related crop failures, including from hail, frost and droughts, and controls roughly 10% of the Italian agricultural insurance market. Sompo is expected to spend between 3 billion yen and 5 billion yen ($27.3 million and $45.5 million) on the deal.

Agricultural insurance can also protect farmers against market fluctuations. Sompo is eager to make further inroads into the field, which is less vulnerable to economic cycles and which it considers a key growth driver alongside its auto and business insurance.

Sompo International currently earns about 20% of its premium income from agricultural insurance. It acquired Italian insurance broker A&A in 2018 and U.S.-based Diversified Crop Insurance Services in 2020. This year, the group began offering insurance to help offset loss of income for Thai sugar cane farmers during droughts.

Sompo has also been working on digital services to help farms run more efficiently. It offers real-time monitoring of fields and crops, as well as a service that alerts farmers to approaching heavy rains and other bad weather in order to minimize crop damage.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more