Japan insurers struggle to pinpoint climate change cost estimates

Source(s): Thomson Reuters
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By Leika Kihara and Takahiko Wada

TOKYO - As the world tries to price the cost of climate change, Japan's second largest non-life insurer MS&AD foresees the potential rise in claim payments in 2050 to be anywhere between 5% to 50% from current levels.

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Others, including industry leader Tokio Marine & Nichido Fire Insurance, are wary of even producing estimates, citing a lack of data.

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"But doing scenario analysis without clarity on how climate could change 50 years from now, and how that could affect the number of typhoons that hit Japan, is a different story."

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Japanese regulators are still learning their way in setting rules on disclosure, lagging their counterparts in countries like Britain and France who have already announced plans to conduct stress tests incorporating climate risks.

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