Global reinsurance broker Guy Carpenter has estimated the number of claims from the April hailstorm that affected the Kansai region will exceed 150,000, with total insurance losses estimated at ¥150bn (US$1bn).
The region experienced significant hail damage from severe thunderstorms between the evening of 16 April 2024 and the morning of 17 April 2024. The event caused extensive damage to cars and residential buildings, particularly in Hyogo, Okayama, and Shiga prefectures. Radar estimates indicate that the largest hailstones reached approximately 6 cm in diameter.
The General Insurance Association of Japan (GIAJ) reported that the number of claims had reached 92,424 by 26 April 2024, with 91,219 claims paid valued at ¥33.6bn.
In a second update, the GIAJ said claims accepted had risen to 122,152 as of 31 May, with ¥56.4bn (US$350m) paid so far.
In a new report on managing Japanese hail risk, Guy Carpenter estimates the total number of claims will exceed 150,000 and that total insured loss will reach ¥150bn (US$1bn).
The 2024 event follows two other significant hailstorms in the Kanto region in 2022 and 2023, with Guy Carpenter reporting the events caused insured losses of ¥100bn and ¥78bn, respectively.
The report says that climate change may affect hail risk in Japan, but the lack of long-term hail observations, limited radar data, and challenges in weather prediction due to Japan’s topography make it hard to establish a reliable trend.
Nonetheless, Japanese insurers are taking steps to reduce the impact of hail.
“For example, some of the major non-life companies have introduced hail prediction services for automobile, fire, and accident insurance policyholders,” Guy Carpenter said.
Additionally, some companies are distributing “hail covers” for personal vehicles, which can be attached to the front windshield, roof, and hood of passenger cars. Improved forecasting provides more lead time, allowing individuals to protect their vehicles.
Implementing these measures on a large scale could reduce potential losses from hailstorms in Japan, the report adds.
