Parametric quake cover launches for Japan corporates

Swiss Re Corporate Solutions has teamed up with leading Japanese seismograph manufacturer, OYOSI, to provide parametric earthquake insurance using site-specific data from compact seismographs, named ACCURA.

The collaboration will provide Japanese corporates with faster and more accurate seismic intensity data, which will result in a quicker claims pay-out on their parametric insurance coverage if it is triggered due to an earthquake loss.

Corporates in Japan exposed to earthquakes often face gaps in coverage in the traditional insurance marketplace. Parametric insurance can serve as a complementary cover. This type of insurance compensates for losses reported after the event and pays out a preagreed sum when a clearly defined parameter, such as seismic intensity, reaches a preagreed threshold.

Until now, the seismic intensity used to calculate the claims amount was measured by public seismographs which, although extremely accurate and reliable, may be located at some distance from the client’s premises.

Installed directly at a client’s premises, ACCURA provides corporates with a faster claims pay-out process that better reflects the actual loss sustained in the event of an earthquake.

Certified by the Japan Meteorological Agency, the seismograph is equipped with a backup battery and WiFi communication to ensure the retention of seismic records and real-time reporting of seismographic data.