Japanese insurers stop offering riot coverage in China

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By   /   October 5, 2012  /

Japanese insurers stop offering riot coverage in China
While the widespread anti-Japanese protests have subsided in China, large Japanese insurance companies are no longer offering coverage against riots to businesses with operations in the country. As the diplomatic tensions remain high between the two countries, this is expected to take a heavy toll on the companies who have invested in Chinese-based factories. Non-life insurers, such as Tokio Marine and Nichido Fire Insurance, have dropped their policies that covered damages from strikes, riots, and civil commotion.As the people in China have protested their anger at Japan’s claims of owning the disputed Senkaku/Diaoyu Islands, many demonstrations in the previous weeks turned into violent riots, with Japanese shops, restaurants, and factories all becoming targets. Numerous businesses have had to close for repairs or reduce their production numbers. Insurance companies are still evaluating the cost of damages done to those with existing policies, but one estimate says it could reach 10 billion yen (approx. $126 million).

Speaking to the Nikkei business daily, an unnamed source at on major insurer said they will most likely not start accepting applications until early 2013 at the earliest. The newspaper added that this means any Japanese companies launching operations in China will not be covered against riots. It is estimated that at the end of August, there were roughly 14,000 Japanese businesses located in China.

http://japandailypress.com/japanese-insurers-stop-offering-riot-coverage-in-china-0514641



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