[Asia Economy Reporter Changhwan Lee] "We offer premium discounts for elderly people with healthy teeth," "We provide consolation money if you suffer from heatstroke due to the heatwave."
To revitalize the insurance market, which has been sluggish due to COVID-19, unique insurance products have been emerging one after another in Japan, attracting attention.
According to the Korea Insurance Development Institute on the 11th, Japan's Neo First Life Insurance recently launched a product called 'Dementia Insurance To Smile,' which offers premium discounts based on dental health.
This product provides premium discounts the better the dental health condition, based on research showing a close correlation between oral health status and the likelihood of developing dementia. Periodontal disease, the main cause of tooth damage, has also been found to be a cause of Alzheimer's-type dementia and cerebrovascular disease, and preventing periodontal disease is known to be effective in preventing vascular dementia.
A 2010 study by Kanagawa Dental University in Japan also showed that among elderly people aged 65 and over, those with fewer than 10 remaining teeth had 1.9 times the number of dementia cases compared to those with 20 or more teeth. The contract age ranges from 40 to 85 years, and if the insured has 20 or more permanent teeth remaining in the year they turn 70, the premium is discounted.
Heatstroke consolation insurance has also been launched. IR Small Amount and Short Term Insurance Company, a subsidiary of Sumitomo Life, developed the industry's first heatstroke-specific insurance product in April.
This product targets Japan's summer, where the number of heatstroke patients reaches 300,000 annually, and allows selective enrollment only on necessary days such as outdoor event days or heatwave days, with a premium of 100 yen (958 won) per day. It can be subscribed via a mobile app, and if enrolled before 9 a.m. on the day, coverage starts from 10 a.m., allowing users to refer to the morning weather forecast.
With the increase in online events after COVID-19, insurance that covers unexpected event cancellations due to technical issues has also appeared. Aioi Nissay Dowa Insurance launched the 'Streaming Event Suspension Insurance' in February, which compensates for risks of event suspension caused by streaming service troubles. This product was developed based on the fact that as large events such as concerts and sports games shifted to online formats due to COVID-19, the number of cases broadcasting events via streaming services rapidly increased, but there was no insurance covering these risks.
The main feature of this product is to compensate for losses when streaming services become unavailable due to device or communication failures, resulting in refunds of viewing fees or ticket payments, even if the streaming event was held. It also compensates for losses if an event postponed due to unavoidable circumstances is again suspended on the rescheduled date.
The company has also announced plans to launch drone delivery insurance, attracting attention. With the revision of Japan's Aviation Law allowing autonomous operation of unmanned drones in urban airspace starting this year, major companies such as Rakuten plan to start delivery businesses using drones. Aioi Nissay Dowa Insurance has begun developing insurance that covers various risks associated with drone flights and plans to provide services supporting businesses using autonomous drones, both free and paid.
A representative from the Korea Insurance Development Institute explained, "Recently, the Japanese insurance industry has been responding to changes in market conditions such as consumer needs and deregulation after COVID-19 by launching many new products that offer previously unavailable coverage or expanded compensation ranges."
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