Posted on 15 Jan 2013 by Neilson
Three top casualty insurers will underwrite policies created by the World Bank and Japan that protect southern Pacific island countries against natural disasters.
Tokio Marine & Nichido Fire Insurance Co., Mitsui Sumitomo Insurance Co. and Sompo Japan Insurance Inc. will initially offer the policies to five countries and regions, including the Solomon Islands and Vanuatu.
The three firms will manage the insurance using a 5.7 million dollar contribution from the Japanese government in the first year and start collecting premiums from policyholders from the second year.
If an earthquake, tsunami or other disaster strikes the region, the insurers will pay out reconstruction funds via the World Bank. This mechanism eliminates the need for damage assessment, allowing for quick insurance payments.