Howden latest broker to invest in Japan

Howden is the latest international insurance and reinsurance broker to announce expansion plans in the Japanese market, as it revealed schemes to enter the market via the launch of Howden Re Japan and an ILS partnership with Keystone ILS Capital. This follows recent announcements from Miller of its further expansion in Japan, with the appointment of Kazuhiko Shinkai as head of Miller non-marine Japan strategy and BMS Group’s appointment of Ryo Iizuka as a director of its private equity, mergers & acquisitions, and tax (PEMAT) business in Japan. Howden has appointed Kentaro Tada as CEO, Howden Japan. The fast-growing broking group said that Tada will oversee the strategic growth of Howden’s operations across Japan with immediate effect. Tada has held a number of senior roles in the (re)insurance industry, including president and CEO, Rakuten General Insurance Company, president, Guy Carpenter Japan, and president and CEO, SBI SSI Holdings. Howden Re Japan will provide reinsurance brokerage services to life and non-life companies, in addition to strategic advice leveraging data, analytics and capital markets expertise for the Japanese market, said the group. To enhance its reinsurance services in Japan, Howden has invested in Keystone, a Japanese insurance-linked securities (ILS) structuring and capital markets advisory firm. Howden said that in recent years, demand for ILS services has grown significantly in the region in light of increased natural disasters and associated economic losses, as well as the strategic need to diversify sources of capital, and the industry’s continued pursuit of innovation in (re)insurance solutions. Underinsurance of seismic risk makes up the majority of Japan’s natural catastrophe protection gap, which ranks as the world’s second highest at $30bn in premium equivalent terms, said the broker. Kentaro Tada, CEO, Howden Japan, commented: "This is the first step on a journey to establish 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 cyberattacks and geopolitical tensions also of concern to both domestic and multinational companies with operations in the country.” Shinji Yamamoto, CEO, Keystone ILS Capital, said: “The substantial economic losses expected from large-scale natural disasters in Japan present a critical social issue for the country. 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.” David Howden, CEO, Howden said: “It is a hugely exciting moment for us as we enter the Japanese market, bringing a fresh, dynamic and entrepreneurial mindset, underpinned by an employee ownership model that means we’re driven to achieve more, collaborating across borders and specialisms to deliver for clients. This approach to client service and a commitment to long-term business relationships means we have many shared values with Japan’s corporate culture. “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." The investment of Howden and its fellow international brokers in Japan should perhaps not really come as a surprise as this traditionally closed market faces up to rising pressure from the authorities to clean up their act after recent price-rigging scandals. As Howden points out, Japanese insurance and reinsurance buyers need innovative solutions to cope with ever-rising risk exposures they face, and the time may be ripe for brokers to play their role in meeting this demand through an injection of fresh thinking and capital options.

Howden latest broker to invest in Japan

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