TOKYO -- Tokio Marine & Nichido Fire Insurance will sell insurance policies starting in March that will cover damage to facilities resulting from terrorism and violent demonstrations, the first such product in Japan.
Japanese companies have up to now mainly focused on preparing for natural disasters and have not bothered to insure themselves against terrorism or political violence, which are rare in Japan. But with the Olympics approaching this summer, many are taking a fresh look at such risks as their businesses globalize.
Japanese insurance companies, including Tokio Marine, will partner with U.S.-based Willis Towers Watson, an insurance brokerage, to offer a terrorism and political violence insurance product. According to Tokio Marine, clients will pay annual fees of around 25 million yen ($226,000) and up for 10 billion yen in coverage for a facility in Japan.
Tokio Marine will begin selling the coverage in March. Other insurers are considering offering similar products.