After violent anti-Japanese riots, Japan’s insurance companies back away from China businesses
A group of major Japanese insurance companies announced today that they plan to stop offering insurance plans to Japanese firms that do business in China. The latest wave of anti-Japanese rioting was so bad that the insurers are facing “tens of billions of yen in claims for the damage.” The risks of doing business in China are getting too high..
The insurance companies are going to continue providing insurance to their current clients (possibly with higher premiums), but they are going to stop offering new insurance contracts to companies that want to do business in China.
The companies halting new contracts include giants such as Sompo Japan, Tokio Marine & Nichido Fire Insurance, and Mitsui Sumitomo.
Meanwhile, Japanese retailers Aeon and Izumiya are working to repair the damage that Chinese mobs inflicted upon their stores in China. Izumiya suffered about 100 million yen of damage to its department store in Suzhou, but plans to be ready for business again by the end of this month. Aeon, which suffered about 700 million yen of damage to its Qingdao store, plans to reopen in November. Most of the damage will be covered by insurance companies.