The first of the two products pays out when a typhoon passes through a certain number of circular observation areas. Tokio Marine has drawn up 47 areas, each with a 150 km radius around a prefectural capital. This product is targeted at businesses such as theme parks and golf courses with geographically concentrated exposures.
The second pays out when a certain number of typhoons pass through a “passage gate” – a line connecting a location in Japan with a location in the surrounding seas. The insurer has drawn up 10 such passage gates. Tokio Marine is targeting this product at companies with exposures that are less geographically concentrated, such as shipping companies.
A Tokio Marine official said the insurer has closed seven deals and others are being negotiated.