Parametric Earthquake Insurance Launched by HDI Global and Descartes in Japan

HDI Global, a German corporate insurer, has received regulatory authorization in Japan to offer parametric earthquake insurance. The product, developed in collaboration with Descartes Underwriting, provides coverage against all losses caused by earthquakes, including property damage and business interruption, with no deductibles or franchise payments required. The coverage is triggered by seismic intensity thresholds measured by the Japan Meteorological Agency and is distributed through a network of insurance brokers and agencies across Japan.

German corporate insurer HDI Global SE has received regulatory authorization from the Japanese Financial Services Agency to offer next-generation parametric earthquake insurance in Japan. The innovative product, developed in collaboration with Descartes Underwriting, provides comprehensive coverage against all losses caused by earthquakes, including property damage and business interruption, with no deductibles or franchise payments required [1].

The coverage is triggered by seismic intensity thresholds measured by the Japan Meteorological Agency's Shindo scale, ensuring swift and transparent claims processing. This parametric approach addresses longstanding coverage gaps in the Japanese market, which has significant earthquake exposure. The new product is set to bring greater competition and availability of parametric coverage to the local market [2].

HDI Global's Japan branch, a part of Talanx AG, one of Europe's largest insurance groups, collaborated with Descartes Underwriting to develop this advanced solution. The product will be distributed through an expansive network of experienced insurance brokers and agencies across Japan. Descartes' local representative, Ikuya Shimada, will oversee the initiative.

Dr. Dirk Höring, member of the HDI Global SE Executive Board responsible for various insurance divisions, stated that the Japanese insurance market is undergoing structural changes, with regulatory bodies fostering heightened competition and encouraging new insurance solutions to improve customer protection. Casey Sandler, Interim Managing Director of HDI Global's Tokyo office, expressed his privilege in providing this much-needed protection to Japanese clients. Violaine Raybaud, Chief Operating Officer of Descartes Underwriting, highlighted the suitability of Descartes' parametric approach to earthquake risk and the strategic partnership with Generali Global Corporate & Commercial as a key reinsurer of the new product [1].

This development is significant as it addresses the unmet protection needs of Japanese corporations exposed to earthquake risks and sets a new benchmark for parametric insurance solutions in the Japanese market.

References:
[1] https://insurance-edge.net/2025/07/14/descartes-working-with-hdi-global-on-earthquake-cover/
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L6N3TB0BA:0-hdi-and-descartes-authorised-to-offer-parametric-quake-cover-to-japanese-corporations/