Howden Re Japan launches, broker partners with Keystone ILS Capital
Howden, a global insurance intermediary group, has entered the Japanese market with the launch of Howden Re Japan, and also announced a new insurance-linked securities (ILS) partnership with Keystone ILS Capital, a boutique consultancy focused on catalysing more active use of ILS in Japan.
With Kentaro Tada as Chief Executive Officer (CEO), 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.
As CEO, Tada will oversee the strategic growth of Howden’s operations across Japan. The executive 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.
Tada stated: “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 cyber attacks and geopolitical tensions also of concern to both domestic and multinational companies with operations in the country.
As part of its efforts to enhance its reinsurance services in Japan, Howden invested in Keystone, a Japanese ILS structuring and capital markets advisory firm recently launched by former Aon executive, Shinji Yamamoto.
The executive has been an important conduit for the ILS and catastrophe bond market in Japan, having developed core relationships with Japanese cat bond sponsors and reinsurance cedents and worked on the structuring of opportunities in the country.
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, Howden highlights. This ranks as the world’s second-highest at $30 billion in premium equivalent terms, according to Swiss Re data.
Yamamoto commented: “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 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.”
