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Climate Change Adaptation
Enhancement of resilience against disaster caused by climate change
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Due to a rise in the global average temperature, extreme weather events have been increasing in frequency, and it is thought that it will be difficult to avoid the effects in the future. Based on this recognition regarding the natural environment, we need to adjust our economic and social activities to reduce the impacts of climate change and adapt to it for the stability and growth of our society and economy. Accordingly, Mitsui Sumitomo Insurance will provide high value-added services by adding the functions of disaster prevention and supporting recovery from a natural disaster to the basic function of insurance, which is to compensate for damage sustained. Moreover, we will help companies and other organizations to formulate strategies to enhance their own resilience in consideration of the medium- to long-term impacts of climate change, thereby supporting the creation of sustainable businesses and a sustainable society.
products & Services
Products and Services for
Climate Change Adaptation
We will support climate change adaptation through insurance and consulting services
while developing and providing products and services that support speedy recovery from natural disaster.

Weather derivatives
 

We provide solutions by underwriting weather derivatives that cover decreased sales and increased expenses stemming from below-average (or above-average) rainfall levels, extreme heat, unusually cool summers, severe winters, warmer-than-normal winters, or a lack of sunshine.

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Loss prevention and reduction system for local governments “Loss Prevention Dashboard”

A web service that transmits disaster risk prediction, real-time weather data in relation to disaster risks, flood prediction data at least 30 hours in advance, and post-disaster damage estimation using AI, and supports regional loss prevention/mitigation.

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Collective confirmation system for flood disaster risk information

We offer an automated information system that collectively analyzes real-time weather conditions, advises on response, and suggests the timing of action when a flood is likely from an approaching typhoon or significant precipitation.

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Support for early disaster certificate issuance

To speed up the reconstruction of livelihoods and to ease difficulties for disaster victims, we provide local governments with information on our damage assessment with customers' consent to shorten the time needed to obtain disaster victim certificates.

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Insurance to support natural disaster response

We compensate expenses an operator bears under a disaster management agreement with the local governments by dispatching personnel and materials to the disaster area, thereby supporting the operator’s social contribution.

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Visualizing global natural disaster risks caused by climate change
Jupiter Intelligence | Predicting risk in a changing climate
Extreme weather events have become more frequent, causing significant damage to the global economy. If the global average temperature rises further, the material risks from the abnormal climate will also increase. Companies are required to identify natural disasters that may affect their business and disclose to investors their impacts on their business estimated from a comprehensive and long-term perspective.
MS&AD InterRisk Research & Consulting, an MS&AD Insurance Group company that provides risk-related services, offers a quantitative assessment of natural disasters caused by climate change in collaboration with Jupiter Intelligence, a widely known US startup in climate change risk analysis. Using AI, the service assesses the potential risk and damage of future natural disasters such as floods and high tides to an accuracy of 90 square meters based on data from our company-owned and client-owned locations. They can make predictions every five years until 2100. In some disaster cases, a rough estimate of the financial impacts is available in line with the information disclosure recommendations by the Task Force on Climate-related Financial Disclosures (TCFD).
It is important to analyze flood risks that are not only based on precipitation forecasts, but also on topography and other factors. On January 19, 2024, MS&AD InterRisk Research & Consulting released Flood Risk Finder, an SaaS-based platform that enables global flood risk analysis and future climate change impact analysis. By registering the locations of the user company and suppliers, the user can confirm on a map or download data on overall flood risks (e.g., changes in flood inundation depth, amount of damage caused by flooding, etc.) currently and at any point in time in the future. Hazard maps viewable on the platform are the outcome of joint research with the University of Tokyo and the Shibaura Institute of Technology conducted over five years from 2018. The maps are highly accurate, reliable, and high-resolution, which align with changing risk trends. The Flood Risk Finder helps companies to independently assess various scenarios and utilize the assessment results for disclosures in line with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. In addition, the Flood Risk Finder helps companies to realize effective risk management and facilitates mitigation of climate change risks for society as a whole.
Participation in publicly funded natural
disaster compensation scheme in overseas
As of January 2024
Only about 1/3 of the world's economic losses from natural disasters are covered by private insurance. The difference between the amount of economic losses and the amount of insurance coverage is called the protection gap. Mitsui Sumitomo Insurance continues to participate in the Pacific Catastrophe Risk Assessment and Financing Initiative, jointly established in 2013 by the Japanese government and the World Bank, as a company underwriting reinsurance for natural disaster risks. In developing countries in particular, it is difficult for victims themselves or their governments to narrow the protection gap. In order to meet the challenge presented by this situation, Mitsui Sumitomo Insurance has been cooperating with the governmental agencies of individual countries, the World Bank and the Japanese Ministry of Finance. One of the initiatives implemented is the Pacific Catastrophe Risk Assessment and Financing Initiative (PCRAFI), an insurance scheme established under the leadership of the World Bank. The purpose of this program is to promptly provide reconstruction funds to the countries and regions affected by natural disasters of a certain scale in the Pacific Island countries where insurance systems have not yet been established. Mitsui Sumitomo Insurance is the only insurance company that has continued to participate in the program since its establishment in 2013. We will continue to promote public-private partnership projects through our global network and work to resolve the social issues facing each country and region.

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