As it is now less than 300 days until the opening ceremony of the Tokyo 2020 Games, let’s take a look at one of the Tokyo 2020 Olympics gold partners and Paralympic partners (sponsors), Tokio Marine in terms of its involvement with coal-fired power generation.
Tokio Marine is one of the world’s 25 largest insurance companies and operates mainly non-life insurance business in 39 countries around the world. The ratio of its overseas sales is 45%. In particular Tokio Marine’s business in the United States is large with subsidiaries such as Tokio Marine HCC, Delphi and Philadelphia Insurance Company (PHLY).
Recently, insurance payments to cover extreme weather events like typhoons and concentrated heavy rains have increased. According to the General Insurance Association of Japan, the amount of insurance claims paid for natural disasters such as storms and floods in FY 2018 reached a record high of 1.6 trillion yen. For this reason, non-life insurance companies have been raising fire insurance premiums since October 2019. Non-life insurance companies are becoming more aware of the danger of climate change because the amount of insurance payments will increase as the climate crisis worsens.
Tokio Marine has achieved ‘carbon neutrality’ in its business activities through offsetting CO2 emissions from the use of electricity and business trips since FY 2013. However, there is no specific policy regarding CO2 emissions for companies such as factories and power plants that Tokio Marine underwrites. And Tokio Marine is the largest insurance underwriter in the power generation sector in Japan.
So far, 15 insurers around the world, such as Allianz, Axa, Zurich, Swiss Reinsurance, and Chubb have limited underwriting insurance for coal-fired power generation because the construction of new coal-fired power plants is not consistent with the long-term goals of the Paris Agreement. Unfortunately, however, Tokio Marine continues to insure coal-fired power plants.
Tokio Marine has set the slogan of “READY TO GO! The challenge will change the future.” We hope that Tokio Marine takes on the challenge of coal phase-out by the Tokyo 2020 Games and contribute to “the realization of the future that stabilizes climate change.”