For managing agents wishing to issue a policy for risks which are located in Japan but controlled from outside Japan as part of a global / multinational programme, the arrangements set out in this note establish a simplified process via LJI to issue local policies compliant with Japanese regulations - the Open Market Model (OMM).
The arrangement outlined in this guidance note can be used only for Japan domestic risks, which:
- Are a part of a global / multinational policy issued outside Japan; and
- Are Japan risks controlled outside Japan (see below for definition); and
- Are within one of the classes noted as “available for open market model” in Appendix 1 and the products licensed in Japan by LJI.
To qualify as a “Japan risk controlled from outside Japan”, all of the following conditions must apply:
The head office or ownership of the Japan entity/risk is registered and domiciled outside of Japan;
The policyholder is not registered or domiciled in Japan; and
The insurance purchase decision is taken outside of Japan
This OMM cannot be used where the policyholder is a Japan domiciled / registered company. This arrangement may only be utilised by the Lloyd’s syndicates participating on the risk. LJI cannot issue a local Japan policy on behalf of non-Lloyd’s markets. The open market model is intended to operate without the involvement of a local intermediary.