Howden enters Japanese market with Howden Re launch

Howden enters Japanese market with Howden Re launch | Insurance Business Australia

Reinsurance

Howden enters Japanese market with Howden Re launch

Company also announced an ILS partnership

Reinsurance

By
Kenneth Araullo

Global insurance group Howden has announced its entry into the Japanese market with the launch of Howden Re Japan Ltd and a partnership with Keystone ILS Capital.

The new entity will provide reinsurance brokerage services and strategic advice utilizing data, analytics, and capital markets expertise for the Japanese market.

As part of the launch, Howden has appointed Kentaro Tada (pictured above) as CEO of Howden Japan. Tada, who will oversee the strategic growth of Howden’s operations in Japan, has previously held senior roles including president and CEO of Rakuten General Insurance Company, president of Guy Carpenter Japan, and president and CEO of SBI SSI Holdings.

In an effort to enhance its reinsurance services in Japan, Howden has also invested in Keystone, a Japanese insurance-linked securities (ILS) structuring and capital markets advisory firm.

Demand for ILS services has significantly increased in the region due to natural disasters and economic losses, as well as the strategic need to diversify sources of capital. The industry continues to seek innovation in reinsurance solutions, and the underinsurance of seismic risk remains a significant issue, contributing to Japan’s $30 billion natural catastrophe protection gap.

Tada said that this move marks the beginning of establishing 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,” Tada said.

Shinji Yamamoto, CEO of Keystone ILS Capital, also noted the substantial economic losses from large-scale natural disasters in Japan as a critical social issue.

“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,” Yamamoto said.

David Howden, CEO of Howden, described the entry into the Japanese market as an exciting development for the company.

“This approach to client service and a commitment to long-term business relationships means we have many shared values with Japan’s corporate culture,” Howden said. “With the appointment of Mr. Tada, who has extensive industry experience, Howden is perfectly placed to provide innovative and imaginative risk solutions to our Japanese clients. And by bringing new choice to one of the world’s largest and most advanced economies, I’m looking forward to a new chapter for the Japanese insurance market.”

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