Mission
To enhance disaster resilience in disaster-prone Japan and achieve a sustainable society, we provide various disaster risk solutions utilizing the insurance-linked securities market.す
Introducing Keystone ILS CapitalKeystone ILS Capital leverages the Insurance-Linked Securities market to address social challenges in Japan.
Japan, a “disaster-prone country,” operates on its small land with large economy.
Meanwhile, the insurance and reinsurance markets,
which are the primary receptacles for disaster risk, are facing unprecedented challenges.
Increased Uncertainty Due to Climate Change
Expansion of the Protection Gap Due to Economic Development and Urbanization
Keystone ILS Capital addresses social challenges through disaster risk solutions that leverage the capital markets.
The emergence of natural disasters of unprecedented scale, accompanied by enormous economic losses due to imminent national-scale earthquakes and intensifying weather disasters, is a growing concern. Amid social challenges such as declining birthrates and a shrinking population, Japan’s traditional model of post-disaster public support generates moral hazards and intergenerational inequities. Furthermore, if sufficient public support is not timely provided at the time of a disaster, the recovery period may be prolonged, spreading indirect damage through economic activities both within and outside the disaster area, potentially exacerbating the losses.
Insurance-linked securities (ILS) transactions utilize the capital markets in ways different from traditional insurance and reinsurance, allowing diverse economic bodies to participate. By transferring the domestic lingering risks to the capital markets through ILS, we can move closer to a resilient societal structure against disasters.
Meanwhile, disaster risk offers investors diversification opportunities as an alternative investment with low correlation to traditional financial assets and macroeconomic events. Keystone ILS Capital facilitates the liquidatrion and overseas transfer of domestic disaster risks through ILS. Simultaneously, it promotes investments in diversified international disaster risks by domestic capital. This bi-directional flow offsets the costs of risk transfer with the returns enjoyed by investors, preventing wealth outflow abroad while exchanging domestic disaster risks with diversified risks abroad, thus spreading the massive disaster risks that linger domestically.
To enhance disaster resilience in disaster-prone Japan and achieve a sustainable society, we provide various disaster risk solutions utilizing the insurance-linked securities market.す
Rather than merely choosing between shouldering excessive risk or transferring it abroad at great cost, we propose a new form of disaster risk management that involves liquidating domestic risks through insurance-linked securities and exchanging them with diversified risks abroad.
Leveraging our unparalleled experience in a niche and specialized market domestically, and through partnerships with a major international reinsurance broker, we deliver solutions to the domestic market.
Keystone ILS Capital has formed a business alliance with major international reinsurance broker Howden.
This partnership with Howden allows us to provide one-stop services necessary for arranging insurance-linked securities.
Joined Sumitomo Bank in 2000 and began working in the United States from 2002. He was assigned to the financial products development division. Managed bond portfolios and launched related businesses in the U.S. until 2007. Joined J.P. Morgan Securities in 2007 and returned to Japan, where, until 2009, worked as a marketer handling the marketing of various financial products, including ILS funds. Joined leading insurance broker Aon in 2009, initially working on ART (Alternative Risk Transfer) solutions for corporations, and from 2010, specialized in insurance-linked securities as part of Aon Securities. As Managing Director, led the structuring of catastrophe bonds, handling numerous projects targeting earthquake and typhoon risks in Japan. Since 2010, he was involved in structuring over 70% of the deals issued targeting Japan’s disaster risks. During this period, developed various structures tailored to Japan’s disaster risks, worked on the first issuances for Asian sponsors from SPRV domiciled in Singapore and Hong Kong, consulted investors considering investments in ILS funds, and developed products for parametric risk transfer products.