In order to offer products and services stably well into the future, the Tokio Marine Group has been conducting research into risks associated with climate change risks and global warming, as well as promoting the development and provision of products and services that are responsive to these new risks.
An Overview of the Tokio Marine Group’s Initiatives
The incidence of natural disasters worldwide (including typhoons, hurricanes, and torrential rain) that cause significant losses has been on the rise in recent years. If the incidence of natural disasters attributable to climate change and global warming should continue to increase in the future, the frequency of accidents and the amounts of claims to be paid would also rise, especially in such areas as property insurance and automobile insurance. Consequently, we have to recognize that climate change and global warming pose major risks to the management of the insurance business hereafter.
The Tokio Marine Group has been making a cross-organizational effort since December 2006 to promote the "Global Warming Research Project." In particular, Tokio Marine & Nichido, the Tokio Marine Research Institute and Tokio Marine & Nichido Risk Consulting have been conducting research into risks associated with climate change and global warming, as well as promoting the development and provision of related products and services.
Tokio Marine & Nichido has also been promoting these activities with the announcement of the "Comprehensive Program on Global Warming" in November 2007, which established a framework for climate-change strategies and clarified the Company’s position on tackling the issue of climate change. Receiving high acclaim for these comprehensive initiatives, Tokio Marine & Nichido was certified as an "Eco-First Company" in November 2008 based on the "Eco-First Program" established by the Ministry of the Environment of Japan.
| Items | Main Components | Content | Link |
|---|---|---|---|
| Risk research | The Tokio Marine Research Institute, Tokio Marine & Nichido,Tokio Millennium Re (Joint research undertaken by the University of Tokyo and Nagoya University) |
Surveys and research into risks related to climate change and global warming |
See here for details |
| Provision of products and services | Global Warming Research Project (Members: Tokio Marine & Nichido, Tokio Marine & Nichido Risk Consulting and other Group member companies) |
Development and provision of related products and services that adapt to and mitigate climate change and associated risks |
See here for details |
| Reducing an environmental impact, raising environmental awareness and contributing to society |
Group member companies | Reduce environmental impact during business activities (greenhouse-gas emissions, paper resources and others) |
See here for details |
Tokio Marine & Nichido's Comprehensive Program on Global Warming
The Role of Insurance Companies toward a Sustainable Society
Amid concerns about the increasing incidence of large-scale natural disasters due to climate change and global warming, the insurance industry is expected to offer assistance measures to society through the provision of specialized knowledge in such areas as the payment of claims, risk assessment and asset management. In addition, one important role played by insurance companies is the provision of insurance systems as well as disaster prevention and risk management services in developing countries and regions that are vulnerable to the impact of climate change.
For example, we believe that assistance can be provided in developing insurance systems as mechanisms that compensate for economic losses due to such phenomena as typhoons, hurricanes and torrential rains. For this reason, it is critical to form partnerships between government and business and assume a variety of roles to achieve these aims.
By actively participating in such endeavors, the Tokio Marine Group has been aiming to assist in regional developments worldwide. Furthermore, the Group has proactively supported a greater degree of technology transfers to developing countries by companies that possess superior energy conservation and environmental technologies. This is accomplished by underwriting insurance (including property insurance, liability insurance, casualty insurance, export credit insurance and others) and providing disaster prevention and risk management services for such global companies.
- To Protect Citizens and Society from Natural Disasters
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Terumasa Miyoshi
Managing Director and Senior Research Officer,
The Tokio Marine Research InstituteFor responding to changing and increasing risks from climate change-related natural disaster risks, disaster prevention and insurance (disaster recovery) functions are indispensable. The Tokio Marine Group has been making full effort to protect citizens and societies in developed countries such as Japan as well as developing nations from natural disasters and is going to make full use of its risk management technology to fulfill this mission.
- Initiatives to Form Partnerships with Insurance Companies Worldwide
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A scene from the announcement made at The Geneva Associations annual general assembly
Kunio Ishihara
Chairman of the Board,
Tokio Marine & Nichido
The Geneva Association—a nonprofit organization composed of approximately 80 executives from major insurance companies and reinsurance companies around the globe—launched the CC+I Project* in FY2008 to conduct surveys and research from a wide array of perspectives into the economic and social impacts of climate change and related insurance. The Geneva Association adopted the Kyoto Statement in May 2009. The Kyoto Statement is the first declaration made by the insurance industry that summarizes the roles that the industry must take on in response to risks posed by climate change in light of the impact climate change is exerting on society.
* CC+I Project: Climate Change and Insurance
In order to achieve a sustainable society, the Kyoto Statement reaffirms the responsibilities of the insurance industry with regard to customer support through actions that alleviate and address climate change. Such measures include promoting
investment in further research, innovative insurance product design and the implementation of low-carbon energy projects.
Furthermore, the insurance industry declares its support for policy makers by actively cooperating in efforts to draw attention to improvements in construction standards and climate change risks, the funding of related research and undertaking initiatives in other areas.
In anticipation of the COP15 of the United Nations Framework Convention on Climate Change (UNFCCC) that will be held at the end of 2009, insurance industry leaders are emphasizing their ability to provide supplementary functions as part of comprehensive measures for countries and businesses that are directly affected by climate change risks. These actions are taken from the standpoint of the insurance industry as a body that is able to provide specialized services.
The Geneva Association Website
Participation in International Initiatives
The Carbon Disclosure Project (CDP) is a project established through the cooperation of institutional investors from around the world, demanding that key companies around the world disclose information on their responses to the issue of climate change. Tokio Marine & Nichido has participated in this project since 2005. In the 2007 survey, 315 institutional investors from around the world (investing approximately $41 trillion in total) sent questionnaires to leading companies around the world.
