Starting from April 2016, Sompo Japan Nipponkoa Insurance will begin marketing an insurance policy against losses related to terrorist acts. However, damage caused by biological or chemical weapons is not covered under such policy.
The new offer will be available to companies worldwide via Sompo Japan and its overseas units as well as from its European subsidiary, Sompo Canopus.
Cover offered by the company will be capped at 5 billion yen (44 million USD) and claimed premiums will depend on the country where the company to be insured is implemented and the risk associated with its location.
For example, in a high terrorist risk area like Indonesia, between 5 and 13 million yen must be provided annually in order to benefit from the best coverage offered by the insurer.
Sompo Japan expects strong demand for its product from hotels, shopping malls, oil mills and power plants, especially with all the disruptions caused by the Islamic State and other terrorist organizations.