Public Insurance

Japan introduced a new type of insurance in the form of weather insurance. This type of insurance is to anticipate the decline in profits caused by cool summer. This type of insurance sales target is a small company engaged in the service / services like: renting a place to stay (hostels) used the tourists the edge of the beach vacation, restaurant manager, swimming pool, ice-cream industry, and other small businesses whose sales focused on season heat.

The insurance was named “Summer Greeting” was sold in the period July 15 until July 31. Closing period is determined only in August. August was chosen because it has been learned that the days of summer are on average in August. How it works as follows: Number of days in the summer in August determined only for 10 days. Summer day is defined as a day where the temperature more than 300C. When the days in summer comprise less than 10, then the insurer indemnify accordance with a deficit because of the small number of summer days.

For example, compensation is determined $ 5,000 per day, if the number of summer days in the month of August was the sixth, then the total compensation amounted to $ 20,000 as compensation for lack of four days of summer.

Application closing of risk must be completed before entering the insurance period in the month of August. Determination of sum insured are free, but the overall limit of indemnity specified maximum amount of the excess profits that are borne in August of the year by gains in August the previous year. While it has also designed several types of insurance to cover the risk of decline in profits due to abnormal weather conditions, such as warm winter, heavy rain or sunshine insufficiency.