We launched Tokio Marine GX (TMGX) last year because the transition economy is creating a different set of challenges for clients, investors and insurers. Decarbonisation requires significant investment in physical assets, but getting those projects financed, built and operating depends on how effectively risk can be understood and transferred.
Tokio Marine Group hit its target for Group decarbonisation-related insurance premiums a year early this month. FY2025 premiums, led by TMGX, reached ¥55.5bn, around $350 million at current exchange rates. A new target of ¥100bn, approximately $630 million, is now in place for FY2030.
One of the clearest lessons from that first year is the value of engaging earlier and bringing the right expertise into the conversation from the start.
Renewables remain the foundation of TMGX, alongside a broader range of established and emerging transition markets, from new energy and infrastructure to marine, storage, alternative fuels, carbon markets, technology performance, adaptation and project enabling financial products.
The TMGX model is designed to bring those areas together. We operate through one underwriting platform that allows us to consider a whole project lifecycle, from pre-planning and financing through to construction and operation.
We also recognise that no organisation will always have every answer in-house. That is why we built the GX ecosystem, combining our own underwriting and subject matter expertise with nine external partners who bring deep knowledge of industries and technologies.
Where the data is not yet there, we work with external specialists, including technology specialists, data scientists and industry experts, to build a clearer picture of the risk. The aim is to make those risks more tangible, price them with greater confidence and, where possible, help move exposure away from a client balance sheet to enable a project.
The opportunity ahead
Insurance often enters a project once many of the key commercial decisions have already been made. That can work well for established risks, but becomes more challenging when a project involves new technology, a new application or limited historical data. In those cases, there is value in involving insurance earlier, while the risks and commercial structure are still developing.
To understand where insurance can add the most value as technologies and markets develop, we have mapped several industries across the next ten years, with a different approach for each. Where a market is ready, the focus can be on products and capacity. Where it is still developing, the priority may be data, technical understanding, regulation and building the relationships that will eventually allow the insurance market to participate.
NC Fusion is one example. By working with industry, government and regulatory representatives, we can better understand how the sector is developing and bring an insurance perspective into the conversation before commercial insurance becomes an immediate requirement.
The ambition for year two
The next stage for TMGX is to continue building this ecosystem. Complex transition risks do not always fit neatly within individual insurance products or markets, so our aim is to connect those areas more effectively.
A single underwriting approach across the transition value chain allows us to build a broader, more balanced portfolio and manage emerging risks more consistently.
There is still a great deal for us to learn. Year two is about building on that first year and applying the model across more of the transition economy.