Reports released on October 5, 2012, indicate that many of the big Japanese insurers have stopped covering firms in China against riots. The recent move is likely to hit investments in China as the countries are still at loggerheads in regards to territorial issues.
Till date, some of the major non-life insurers such as Tokio Marine and Nichido Fire Insurance have been selling policies which cover damage from strikes, riots and civil commotion; however, a local newspaper indicated that these companies have stopped accepting new applications for policy cover.
According to our sources, new applications are not being accepted as protests targeting Japanese businesses have erupted in cities across China. More than ten thousand demonstrators have protested across China venting their anger on the issue of the disputed islands – Senkaku in Japan and the Diauyus in China.
Many protesters have even turned violent, and targeted Japanese shops and factories, which have forced them to stop production. Popular reports also mention that companies are now calculating the damages suffered by the existing policy holders. Another official from an insurance company on the condition of anonymity said that they will not be accepting new applications until the beginning of next year. It appears that the disputed island issue is set to have wider ranging implications in the near future.
