Japan has introduced a new type of insurance in the form of weather insurance. This type of insurance is to anticipate a decline in profits due to the cool summer climates (cool summer). Target sales of this type of insurance is a small company engaged in the service such as rental homes (huts) that are used by tourists on holiday edge beach, restaurant manager, swimming pool, ice cream industry and other small businesses whose sales concentrated in the summer.
How it works as follows: The number of days in the summer in August determined only for 10 days. Summer day is defined as a day where the temperature is more than 30 0 C. When the days of summer numbered less than 10, then asuradur indemnify in accordance with the deficit because of the small number of summer days. For example, such compensation is determined $ 5,000 per day, if the number of summer days in August was 6, then the amount of damages amounted to $ 20,000 as compensation for deficiency 4 days of summer.
Application closing risks should be completed before entering the period of insurance in August. Determination of the sum insured are free, but the overall limit of indemnity specified maximum profit margin incurred in August of the year with gains in August of the previous year. While it has been designed also some kind of insurance to cover the risk of a fall in profits due to abnormal weather conditions, such as warm winter, heavy rain or sunshine insufficiency.
