Japan’s summer heat causes surge in heatstroke insurance sales
Japan’s summer heat causes surge in heatstroke insurance sales | Insurance Business Asia
Life & Health
Japan’s summer heat causes surge in heatstroke insurance sales
The demand leaves insurance companies in Tokyo very enthusiastic
Life & Health
By
Abigail Adriatico
The rising temperatures during the summer season in Japan has led to a notable increase in the sales of heatstroke insurance, as reported in an article from The Japan News.
The increase for heatstroke insurance came alongside the rising demand for travel, sports, and outdoor events, which has led to many insurance companies shifting their focus towards establishing and expanding their compensation plans, The Japan News reported.
Minato Ward-based insurance agency Marble Co. had reported that it saw a large increase in its recreation insurance policy “Minreku,” which also covers heatstroke. Offered by Nissay Dowa Insurance Co., the insurance serves as an accident policy for groups which also has the optional coverage for heatstroke.
The insurer said that it recorded nearly twice the amount of subscriptions for the policy from the start of the year towards the end of July compared to the same time from the previous year.
A sales representative from the insurer said that there had been a noticeable increase in applications for the insurance policy since June as many anticipated the sweltering summer heat.
“Awareness of the insurance is rising alongside an increase in understanding of how dangerous heatstroke is,” the representative said.
The Japan News reported that Sumitomo Life Insurance Company has recorded more than 100,000 sales of its low-cost, short-term insurance policy for heatstroke as of July 25, which was a notable increase from the 56,000 recorded in the previous year.
The firm shared that students were being careful regarding club activities, while adults were worried about experiencing heatstroke during outdoor activities like golf and barbecues.
Meanwhile, Mitsui Sumitomo Insurance Company recorded an uptick of about 40% in new subscribers to its personal accident insurance policy in July had added the optional coverage for heatstroke. New subscribers were mostly those under 20 years of age and those over 70.
Following this trend, there are new insurance products that are undergoing development together with the expansion of coverages. A subsidiary of Tokio Marine & Nichido Fire Insurance Co. launched a new low-cost, short-term insurance product together with NTT Docomo Inc. in June.
Sompo Japan Insurance Inc. was also planning to add optional coverage for heatstroke in all of its personal accident insurance policies starting next year.
Despite the small profit margin of insurance related to heatstroke for insurers, the competition is expected to intensify in the near future as insurers anticipate a more stable demand for the policy, The Japan News reported.
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