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Case Study

Controlled Burning Insurance for Aso Grasslands (Noyaki)

COUNTRY/REGION

Japan

START - END DATE

Ongoing

REALM

Terrestrial

Mitsui Sumitomo Insurance (MS&AD Group) provides insurance coverage for the risk of fire spreading during noyaki: the traditional prescribed burning of the Aso grasslands in Kumamoto Prefecture, Japan. Noyaki has been practised for > 1,000 years across approximately 22,000 hectares of grassland within the Aso caldera, preventing forest succession and maintaining a unique semi-natural grassland ecosystem that supports around 600 rare plant and insect species, including endangered butterflies and beetles. The practice had been suspended in some areas due to concerns about fire-spread liability. MS&AD’s insurance coverage has enabled the continuation/resumption of noyaki, supporting the preservation of grassland biodiversity, carbon sequestration (the grasslands absorb 1.7x more CO₂ than all Aso households emit), water resource conservation, livestock grazing and landscape-based tourism. The product forms part of MS&AD’s broader Green Resilience strategy leveraging nature-based solutions through insurance.

Insurance trigger type

The mechanism by which an insurance payout or financial response is activated

Indemnity

Insurance scheme target

Beneficiary of Insurance Scheme

Local Communities

Insurance scheme developer

The type of institution(s) providing insurance or guarantees

Private

Insured risk

The primary category of risk addressed or managed by the insurance solution.

Liability and Policy Risk

Insurance product type

Adapted from UNEP FI framework subcategories

Insurance to reduce risks to ecosystems and species

Partners:

Mitsui Sumitomo Insurance (MS&AD Insurance Group)

Referred by:

UNEP FI