17 October 2024

Tokio Marine to pay motorists who drive carefully - and save the planet

Tokio Marine & Nichido Fire Insurance (TMNFI) has won approval to earn Japanese carbon-reduction credits, known as J-credits, from consenting auto policyholders whose dashcams show them driving with "gentle starts and little de/acceleration" - behaviour the insurer said would reduce greenhouse gas emissions.

TMNFI did not describe the type of driving against which reductions would be assessed, nor predict the effect on its loss ratio in the famously difficult line of business in Japan, but said today it will sell the J-credits earned and return the proceeds to each insured, electronically.

A committee certifying schemes for J-credits approved TMNFI's proposal in August. While the credits will only be earned after 2025, TMNFI plans pre-paying customers from December 2024, based on "the expected amount of credits obtained".