A.I.-Insurtech wave comes to Japan

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Silicon Valley Hippo Insurance receives $350ml funding from MS&AD: This follows MS&AD and Tokio Marine's tie-up with Tractable (Auto claim and natural disaster AI). 2020 officially marks a year where traditional insurance companies are stepping up to reinvent its former structures.

- According to GIAJ (General Insurance Association of Japan), insurance claims payment has exceeded Y1.6tr (YoY 8.4x) in 2018 due to typhoons, earthquake, and floods. This is highest in nearly 50 years. To cover the cost, insurance companies have been announcing price hikes. 

- MS&AD and other insurance company's efforts to incorporate AI/DL to anticipate disasters before-hand (Hippo), and to swiftly calculate relevant damage (Tractable) should not only help insurance firms reduce costs, also play a key part in achieving resiliency in Japanese society (perhaps more valuable!!).

Photo below: Recent Typhoons and total cost of insurance claims (2018 = Y1.6tr)

Photo below: Japan ranks #1 in countries most affected by extreme climate, according to Japan Times