Howden, a global insurance intermediary group, has entered the Japanese market, launching Howden Re Japan and an insurance-linked securities (ILS) partnership with Keystone ILS Capital.
Howden Re Japan will provide reinsurance brokerage services to life and non-life companies in addition to strategic advice leveraging data, analytics, and capital markets expertise for the Japanese market.
To enhance its reinsurance services in Japan, Howden has invested in Keystone, a Japanese ILS structuring and capital markets advisory firm. In recent years, demand for ILS services has grown significantly in the region in light of increased natural disasters and associated economic losses, as well as the strategic need to diversify sources of capital, and the industry’s continued pursuit of innovation in (re)insurance solutions. Underinsurance of seismic risk makes up the majority of Japan’s natural catastrophe protection gap, which ranks as the world’s second-highest at $30bn in premium equivalent terms.
Howden announced the appointment of Mr Kentaro Tada as CEO, Howden Japan. He will oversee the strategic growth of Howden’s operations across Japan with immediate effect. Mr Tada has held a number of senior roles in the (re)insurance industry, including president and CEO of Rakuten General Insurance Company; president of Guy Carpenter Japan; and president and CEO of SBI SSI Holdings.
First step
Mr Tada said, "This is the first step on a journey to establish Howden’s long-term presence in Japan. As a company, Howden is dedicated to improving disaster resilience and corporate sustainability, and Japan, as a country that faces significant risks from large-scale natural disasters such as earthquakes and typhoons, can benefit greatly from the specialist global expertise we bring. Japan’s risk environment is becoming ever more complex to navigate, with cyber attacks and geopolitical tensions also of concern to both domestic and multinational companies with operations in the country.”
Mr Shinji Yamamoto, CEO of Keystone ILS Capital, said, “The substantial economic losses expected from large-scale natural disasters in Japan present a critical social issue for the country. Keystone ILS Capital is focused on facilitating international diversification of these risks through insurance-linked securities transactions. Our partnership with Howden allows Keystone ILS Capital to offer comprehensive services tailored to various needs within Japan, which we see as a pivotal step forward in addressing these pressing issues.”
Howden is a leading global insurance intermediary group with employee ownership at its heart. Founded in 1994, it provides insurance, reinsurance, and underwriting services and solutions to clients ranging from private individuals to the largest multinational companies.
The Group operates in 55 countries in Europe, Africa, Asia, the Middle East, Latin America, the USA, Australia and New Zealand, employs 18,000 people and manages premiums totalling $38bn on behalf of its clients.