Tokio Marine, Japan’s largest property and casualty insurer, has launched Tokio Marine GX (TMGX), a dedicated green insurance unit aimed at supporting businesses transitioning to low-carbon operations. The group is targeting USD1 billion in revenue from the new unit by the end of the decade as it seeks to capture a significant share of the growing global green insurance market.
TMGX will provide tailored insurance and advisory solutions for sectors driving the energy transition, including green hydrogen, shipping, cement, floating solar, and small-scale nuclear. The initiative underscores Tokio Marine’s commitment to supporting decarbonisation efforts and unlocking financing for sustainable infrastructure projects.
“We’re going to rip up the rule-card a little bit here,” said Fraser McLachlan, who leads both GCube, the group’s renewable energy arm, and the newly formed TMGX. “We’re going to look at some new technologies and explore more sophisticated ways of transferring risk for businesses.”
The unit plans to offer coverage of up to USD500 million on individual risks and is aiming for at least 10 per cent of the projected USD10 billion global green premium income market by 2030. Building on GCube’s existing USD200 million revenue base and a 50-person team, both are expected to double in size over the coming years.
“There are many sectors that really haven’t been served by the insurance space,” McLachlan noted, highlighting the need for innovative solutions to address physical and operational risks tied to the energy transition.
Among TMGX’s novel offerings is tax credit insurance, designed to help unlock project financing. “It’s a win-win. Lenders favour it because it transfers their risk; we value it as we earn a premium for a risk we understand, and it enables projects to be financed on more equitable terms,” McLachlan explained.
To accelerate its market entry, TMGX may also partner with managing general agents (MGAs) instead of relying solely on in-house teams. “It’s a pretty quick win and provides instant access to a market,” McLachlan added.
The broader goal is to prevent climate-linked infrastructure projects from stalling due to risk constraints. “Unless people start coming to the table with more creative insurance solutions, many of these projects will struggle to move forward,” he cautioned.
Tokio Marine Group emphasised that its GX initiative aligns with global capital flows towards carbon neutrality, positioning the insurer to lead in underwriting, consulting, and deploying risk solutions for a decarbonised economy.
“We aim to contribute to social development and the growth of various industries by providing insurance solutions and risk consulting, supporting our customers and society in the transition towards carbon neutrality,” the company stated.
As the global energy transition accelerates, Tokio Marine is positioning TMGX to play a pivotal role in insuring the future of sustainable infrastructure.
-ESG News
