2nd Conference of the OECD International Network
on the Financial Management of Large-sale Catastrophes
Session Ⅰ Ｓｅｃｏｎｄ ｐａｒｔ
Acting on Climate Change in Asia
24 September 2009
SOMPO JAPAN INSURANCE INC.
Associate Director
Corporate Social Responsibility Office
Masao Seki
In 2004, 10 Typhoons Hit Japan
Source: Japan Meteorological Agency
2
Top-10 Claims for Typhoons and Other Weather-related
Disasters in Japan
(million $)
Name of Disaster (year)
Claims Paid
1
Typhoon No.19 (1991)
5,679
2
Typhoon No.18 (2004)
3,874
3
Typhoon No.18 (1999)
3,147
4
Typhoon No.7 (1998)
1,600
5
Typhoon No.23 (2004)
1,380
6
Typhoon No.13 (2006)
1,320
7
Typhoon No.16 (2004)
1,210
8
Downpour
(2000)
1,030
9
Typhoon No.13 (1993)
977
10
Hailstorm
700
(2000)
Insurance payments for fire and miscellaneous, automobile, marine
(Total payments by 20 member companies of General Insurance Association of Japan)
$1=\100
Source: The General Insurance Association of Japan
3
Our Approaches to Climate Change
Insurance companies should address climate change with two
approaches: mitigation and adaptation.
Low Carbon
Society
Climate-Resilient
Society
Mitigation Adaptation
Civil
Society
Business
Government
Integration
Scientists
4
Mitigation Approach
Insurance companies should serve as “catalyst” for actions to
promote a low carbon society.
Insurance Products
and Services
-Eco-Safe Driving
-Automobile Parts Recycling Campaign
-Promotion of alternative energy through the
provision of weather derivatives
Investment
-Eco-fund / SRI fund
-Loan for green buildings
-Principle for Responsible Investment
-Carbon Disclosure Project
Carbon Footprint
Reduction
-Installation of energy-efficient equipment
-Reducing waste and promoting recycling
-Environmental management systems
-Green Procurement
5
Mitigation -Insurance Products and ServicesInsurance products and services such as Weather derivatives and
Eco-Safe Driving can help corporations and individuals mitigate
the discharge of CO2.
Weather derivatives
GIAJ (General
Promotion
of solar
Insurance
power
production
Association
of Japan)
through
the use
of
has developed
the
weather
derivatives
"Eco-Safe Driving"
program,derivative
which
Weather
contributes
not only
for
wind power
to fuel saving and
producers
CO2 reduction but
also safer driving.
Eco-Safe Driving
GIAJ (General
Insurance
Association of Japan)
has developed the
"Eco-Safe Driving"
program, which
contributes not only
to fuel saving and
CO2 reduction but
also safer driving.
6
Mitigation -Investment(1/2)The market size of SRI (Sustainable and Responsible Investment) in
Japan has expanded significantly in recent years.
Market size of SRI in Japan
(Million $)
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
$1=\100
2000
2001
2002
2003
2004
2005
2006
2007
Source: SIF - Japan
7
Mitigation -Investment(2/2)Eco-fund
SRI fund
Sompo Japan Green Open:
Since September 1999
Balance:11.8 billion yen
(as of February 2009)
(Yen)
Sompo Japan SRI Open:
Since March 2005
Balance:778 million yen
(as of February 2009)
Performance of the Sompo Japan Green Open (as compared toTOPIX)
(Million Yen)
-Total net assets (right axis)
-TOPIX (left axis)
-Sompo Japan Green Open (left axis)
The constant value, calculated as the value obtained when reinvesting all dividends at the constant value of the settlement date,
as compared to TOPIX (Tokyo Stock Price Index).
The constant value and the benchmark TOPIX (not including dividends) are indexed as 10,000 on the date of inception.
8
Adaptation Approach
Insurance companies should give full play to their core competency
to help create a climate-resilient society.
Ensuring financial
strength
-Arrange reinsurance
-Increase catastrophe reserve
Quick payment to
customers
-Strengthen disaster investigation structure and
claims response services
Preventive measures
-Provide risk management information to
society
-Set up customer service for loss prevention
Risk financing solutions
-Develop risk financing solutions for
adaptation
9
Importance of Adaptation to Climate Change in Asia
Green: Typhoon
Heavy rain
Hurricane
Ocher: Drought
Forest fire
Red: Heat wave
Blue: Cold wave
10
Adaptation -Risk Financing SolutionsThailand
Weather Index Insurance
Adaptation measures are particularly needed in developing
countries, which are vulnerable to the effects of climate change.
JBIC and Sompo Japan are developing weather derivatives
(weather index insurance) as an adaptation measure and
international framework for supporting developing countries.
Sowing
Tilling
May
June
Transplanting
July
Aug
Harvesting
Flowering
Sep
Oct
Nov
Dec
Sowing
(direct seeding)
Sowing
(transplanting)
Transplanting
Drought
Weather
index
insurance
Flowering
Harvesting
Pictures: Embassy of Thailand website, etc. 11
Integration through Education and Learning
Decade of Education for Sustainable Development
-The United Nations adopted the Decade of Education for Sustainable
Development resolution in 2002.
-The overall goal of this resolution is to integrate the principles, values,
and practices of sustainable development into all aspects of education and
learning.
-This educational effort is expected to encourage changes in behavior that
will create a sustainable future in terms of environmental integrity,
economic viability, and a just society for present and future generations.
12
Capacity Building –Involving Key Stakeholders –
Public Seminars on the Environment
with NGO
CSO Learning Scholarship Program
Since 1993
290 seminars
14,500 participants
(as of December 2008)
Since 2000
458 students
(as of December 2008)
CSO : Civil Society Organizations
Employee Environmental
Education Program
13
Disaster Prevention Education “The Fire of Inamura”
●Malaysia, November 2008, UN Asia Ministry Meeting
Introduced in UN International Strategy for Disaster Reduction
Private Sector Activities in Disaster Risk Reduction
Good Practices and Lessons Learned
14
Thank you for your attention
15