Management Consulting

In Japan, companies face significant challenges related to earthquake risks, particularly with the potential for major seismic events such as the Nankai Trough and Tokyo Metropolitan earthquakes. Aon provides tailored risk management solutions to address these challenges, recognizing that the consequences of earthquakes can lead to extensive damage to facilities, business interruptions, and impacts on suppliers and public infrastructure. To mitigate these risks, Aon offers a comprehensive earthquake insurance program that includes coverage for property damage and loss of profits due to business interruptions caused by earthquakes. The insurance program is customized based on the client's maximum probable loss (PML) and their risk tolerance, ensuring that the coverage aligns with the specific needs of the business. Additionally, Aon introduces earthquake derivatives as a solution for businesses that may experience interruptions due to transportation disruptions caused by seismic events. These derivatives provide compensation based on predetermined conditions without the need for extensive damage assessments, streamlining the claims process. Recognizing the limitations of domestic insurance markets in providing adequate coverage for large-scale earthquake risks, Aon also facilitates access to the international reinsurance market. This approach allows companies to secure substantial coverage amounts that may not be available locally, thereby enhancing their overall risk management strategy. Aon's specialized team in reinsurance procurement supports businesses in constructing robust insurance programs that can withstand significant seismic events.