Japan has declared a target of becoming carbon neutral through reducing emissions of GHGs such as CO2 to Net Zero by 2050 and local governments or companies in various industries must take appropriate measures. We provide all kinds of support in a one-stop package for businesses of any size in any industry. This support ranges from introductory seminars on decarbonization, to support for calculating carbon emissions, and developing strategies to cut emissions.

In terms of commercial property insurance, we provide the Carbon Neutral Support Clause (decarbonization measures cost compensation endorsement).

While standard insurance coverage is up to restoration cost, this clause provides additional coverage and support companies’ decarbonization.

Launched the Carbon Neutral Support Clause for corporate fire insurance

MS&AD, at the forefront of the of the industry, support the spread of environmentally friendly vehicles, such as electric cars, by developing lower premium insurances such as 10% discount on automobile insurance for Toyota ultra-compact EVs and other discounts specifically for autonomous vehicles (low-speed EVs) that use electromagnetic induction lanes which are being introduced to secure means of local transport.

Providing insurance for self-driving cars using electromagnetic induction lanes  (in Japanese only)

10% discount on automobile insurance for Toyota ultra-compact EVs  (in Japanese only)

We support dissemination of renewable energies that help the transition to a carbon neutral society through various types of insurance products that comprehensively cover a variety of risks (including property damage, lost profits and liability) surrounding renewable energy developers (e.g. solar power, onshore/offshore wind power, biomass power, and small and medium-sized hydropower), and risk management services such as risk assessment/consulting and the provision of information through handbooks and other means.

Products and services that contribute to achieving the Sustainable Development Goals

Group companies MSI and Aioi Nissay Dowa Insurance provide, free of charge, a cloud service “zeroboard*1” for calculating and visualizing GHG emissions for their insurance agent organizations*2, and Aioi Nissay Dowa Insurance also provides this free service for small to medium-sized enterprises throughout Japan to assist member agents and companies that are our Group’s business partners with their promotion of decarbonization management Our Group, in cooperation with customers and agents, is working to reduce GHG emissions in our value chain by supporting their decarbonization management through this service for calculating and visualizing GHC emissions.

*1: A cloud service offered by Zeroboard, Inc. for calculation and visualization of GHG emissions.
*2: Includes Mitsui Sumitomo Agencies (MSI Aioi Life) of MSI, Advance Club which is an insurance agent organization comprising car maintenance service providers, and members of Aioi Nissay Dowa Pro-Kai (known as “Pro-Kai”) of Aioi Nissay Dowa Insurance, and some car maintenance service providers operating as insurance agents.

December 10, 2021: Other ~ Support for agents’ decarbonization management ~ Launched service for calculating and visualizing CO2 emissions(MSI) (in Japanese only)

Mitsui Sumitomo Insurance has developed insurance products to cover imbalance risks borne by renewable energy producers and aggregators due to shortfalls in actual amounts of generated energy against their generation plans as a result of changes in the weather, generation equipment damage, etc., which can be customized depending on the status of risks.

Launched in June 2022

Through positively selling this insurance as one of “Green Products” with a proprietary index, “MS Green Index,” we support renewable energy producers, etc. and contribute to realization of a decarbonized society.

Launched on May 10, 2022 an insurance product/service, Imbalance Risk Compensation Insurance for renewable energy producers/aggregators (in Japanese only)

Aioi Nissay Dowa Insurance has launched the J-Credit Scheme Participants Support Insurance (for local governments) to cover risks related to projects in which local governments take the lead in the J-Credit scheme utilized as a carbon offset method.

This insurance is aimed at backing up compensation schemes where local governments repair/replace damaged/broken solar power generation equipment, etc. owned by local residents participating in such projects, and it enables stable system management as local governments can set budgets for repair costs, etc. in advance, in the form of insurance premiums.

Launched J-Credit (Japan GHG Emission Reduction/Removal Certification) Scheme Participants Support Insurance (for local governments) (in Japanese only)

MS&AD has joined the Japan Hydrogen Association which was set up in December 2020. The association was established with the aim to support the early creation of a hydrogen society by carrying out social implementation projects as a cross-industry and open organization with a bird’s eye view of the entire supply chain. Collaboration of various companies for lower-cost hydrogen supply and wider use is expected and we will contribute through the association.

Joining the Japan Hydrogen Association (MSI) (in Japanese only)

Joining the Japan Hydrogen Association (ADI) (in Japanese only)

In April 2022, Mitsui Sumitomo Insurance and MS&AD InterRisk Research & Consulting initiated, in collaboration with startups, academic institutions, etc., a joint research project on commercialization of an alert service for detecting signs of equipment failure and abnormalities to support expanded deployment of offshore wind power generation, which is expected to be a major source of renewable energy.

We are aiming at development of an alert service to detect signs of abnormalities which could lead to accidents, by making full use of damage data possessed by Mitsui Sumitomo Insurance in addition to obtaining/analyzing state data, etc. through demonstration experiments carried out in collaboration with local governments and partner companies on undersea equipment and windmills utilizing drones, robots, and sensors.

Launched researches on commercialization of damage protection services for offshore wind power generation system (in Japanese only)

In March 2022, Mitsui Sumitomo Insurance invested in a community symbiosis type renewable energy power generating company, ENERU, in collaboration with the Machi Mirai Seisakujo and Higashimatsushima Organization for Progress, etc., and launched demonstration experiments aimed at reducing natural disaster risks through operation of solar power generation equipment to be set up in the future.

We will contribute to regional revitalization and realization of a decarbonized society by providing suitable products/services to support widespread utilization of renewable energy.

Launched demonstration experiments in a Community Symbiosis Type Renewable Energy Power Generating Company (in Japanese only)

In April 2022, Aioi Nissay Dowa Insurance and the University of Tokyo fully launched a joint research project aimed at promoting carbon neutrality through utilization of telematics technology.

Aioi Nissay Dowa Insurance with its know-how related to telematics technology and the University of Tokyo with its knowledge and analytical techniques in the environmental field are aiming to promote an initiative to reduce CO2 volumes emitted by individual drivers through motor vehicle operation, thereby contributing to achievement of carbon neutrality in Japan.

Launched a joint research project with the University of Tokyo toward CO2 reduction by utilizing telematics technology (in Japanese only)

On July 1, 2022, a consortium of five companies - Wastebox, Chubu Electric Power Miraiz Co., Inc., Toyota Tsusho Corporation, Nippon Life Insurance Company, and Aioi Nissay Dowa Insurance Co., Ltd. - established Tanso Kaikei Advisors Kyokai (hereinafter “Association”).
The Association was established with the aim of spreading use of CO2 emissions measuring methods within Japan and having private businesses, etc. accurately reflect their CO2 emissions volumes in their financial information, and it has developed a “Japan first” private qualification, Carbon Accounting Advisor Qualification System.

Establishment of Tanso Kaikei Advisors Kyokai (in Japanese only)

We sell weather derivatives to help minimize financial losses due to extreme weather or unseasonable weather. 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.

MS&AD InterRisk Research & Consulting Sustainable Management Report (in Japanese only)

In collaboration with MSI GuaranteedWeather and an Australian Insurtech company, we have developed a dedicated platform that enables customers to get online quotes in real time on weather index insurance, and we have begun selling the insurance to farmers in Australia. Whereas traditional crop insurance is often limited to wildfires and hailstorms, this product covers weather conditions such as drought, high and low temperatures, and rainfall just before harvest, contributing to the stability of farmers’ businesses in countries with frequent natural disasters.

This insurance covers expenses such as sympathy money incurred by PPA* business operators in cases where damage to solar power generation equipment established and managed by PPA business operators as a result of natural disasters such as typhoons has resulted in collateral damage to properties owned by neighboring residents and companies, even in cases where the operators are not held liable for compensation.
* Power Purchase Agreement model: A business model where a PPA business operator installs solar power generation equipment in the premises or on the roofs of power consumers, free of charge, and provides the generated power to consumers on a chargeable basis.

Launched Sympathy Money Insurance for payments to neighborhood victims (In Japanese only)

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 2020, Mitsui Sumitomo Insurance participated in the Caribbean Catastrophe Risk Insurance Facility. In 2021, Mitsui Sumitomo Insurance and Aioi Nissay Dowa Insurance joined the Southeast Asia Disaster Risk Insurance Facility and, in 2022, Mitsui Sumitomo Insurance began participating in the Mexico Natural Disaster Fund Program, through which we promptly provide relief funding in the event of a natural disaster of a certain size in countries and regions where the insurance market is not fully developed.

The scope of risk which companies need to be aware includes not only physical risks, such as floods and droughts caused by climate change, but also transition risks which arise when societies and economies shift to a carbon neutral world, such as when transforming energy systems. We provide services that support our clients building a climate change governance structure, performing scenario analysis, and developing a climate strategy in accordance with the TCFD’s Final Recommendations through assessment and analysis of such risks.
We also provide a service which can quantitatively assess the risk of future natural disasters anywhere in the world to an accuracy of 90 square meters based on climate change impact assessments using AI in collaboration with a US startup company. We have since provided this service to many companies.

Climate change risk analysis service (in Japanese only)

Launched climate change impact assessment service for TCFD with Jupiter Intelligence (in Japanese only)

The MS&AD Insurance Group Holdings and MS&AD InterRisk Research & Consulting have teamed up with the University of Tokyo and the Shibaura Institute of Technology to join the Large-scale Assessment of Flood Risk Due to Climate Change (LaRC-Flood™) project and published a Prediction Map of Forecasted Flood Frequency Change Due to Climate Change as part of this project. To clarify the relationship between climate change and flood risk, we have also begun extensively and quantitatively evaluating the impacts of global warming on the probability of past floods occurring, with a focus on the major rivers in Asia.
In the research project, we developed a method to detect trends in changes of flooded area from satellite images. Through such event attribution, we have been able to see how the impacts of global warming affect flooding. The research was developed and we have been working on more sophisticated research into flood risks with support from the New Energy and Industrial Technology Development Organization (NEDO) since fiscal 2021. This has enabled us to accelerate our research for the creation and practical application of highly accurate wide-area flood risk information with a view to using this information in the industrial world.

LaRC-Flood map (in Japanese only)

Understanding changing flood risks due to climate change  (in Japanese only)