September 16, 2021
Mitsui Sumitomo Insurance Co., Ltd.
Aioi Nissay Dowa Insurance Co., Ltd.
New product supporting zero carbon economy

Launch of the “Carbon Neutral Support Clause” for Corporate Property Insurance
Mitsui Sumitomo Insurance Co., Ltd. (CEO: Shinichiro Funabiki, heareinafter MSI) and Aioi Nissay Dowa InsuranceCo., Ltd. (CEO: Kyozo Kanasugi, hereinafter ADI) have launched the “Carbon Neutral Support Clause” supporting
the retrofit of the environmental benefit through recovery where the policy has built retrofitting into the claims
process through additional cost cover including reinstatement, product facility change and addition ofenvironmental beneficial equipment which enable CO2 reduction in August 2021.
The MS & AD Insurance Group will continue to contribute to the transition to zero carbon economy by providing
new innovative products and services.
1. Background
Efforts toward zero carbon economy have been accelerating around the world and new facilities andtechnologies are being developed to reduce CO2 emissions. In the near future, it is expected that morecompanies will adopt facilities and technologies that reduce CO2 emissions with an additional cost when
restoring buildings and facilities after damage by fires, wind and flood etc.
On the other hand, with conventional property insurance, it is only able to pay up to the cost of restoration tothe original condition, such as general construction and facility repair excluding any betterment cost.
With that in mind and given the concept of “build back better*”, MSI and ADI have implemented a new
innovative clause to compensate for the additional cost that leads to the reduction of CO2 emissions at the timeof recovery with the aim of contributing to the transition to zero carbon economy.
*Build back better - this is the concept in the field of disaster prevention. This advocate not only to restore the city toits original at the stage of reconstruction after a disaster but also to take stronger measures torealize town development.

2. Overview(1) Payment
Out of the additional expenses used for the retrofit of the environmental benefit borne by a policy holder due
to a loss occurred on a building or an equipment at the insured location, such expenses with the insurer’s priorapproval are paid as " decarbonization measures".
(2) Compensation Example
If additional costs are incurred due to the following but not limited to decarbonization measures implemented
on the same insured location as the site where the loss occurred, insurance will be paid for such additional costsof decarbonization measures.
a) A function to reuse heat energy discharged from production facilitiesb) A private power generation facility using bioethanol as a fuelc) Fuel conversion of boiler facilities contributing to CO2 emission reductiond) A solar power generation facility on newly reinstated roofe) High thermal insulation glass and high thermal insulation of outer wallsf) An automatic stop function added to lights and power equipment(3) Amount of insurance to be paida) The actual cost of decarbonization measures will be compensated up to the amount obtained by multiplying
the insured loss amount by the indemnity ratio or the limit of liability, whichever is lower.
b) Indemnity ratio and limit of liability can be selected from the following;
Indemnity ratio 10%, 30%
Limit of liability 100 million yen, 300 million yen, 500 million yen, 700 million yen, 1 billion yen(4) Examples of premiums for this extension
Given the indemnity ratio is 30% and limit of liability is 1 billion yen, the additional premium will be c. 10m yen.
The amount may vary depending on the loss history, occupancy, sum insured etc.
End