Business

Information-leak insurance in works

Tokio Marine & Fire Insurance Co. and NTT Communications Corp. plan to tie up to launch an insurance product next month to cover companies damaged by information leaks, sources said Thursday.

The product, to be revealed later, will cover up to several billion yen in losses caused by leaks of client information held by companies, up from the maximum 100 million yen at present.

To be covered by the new policy are expenses for carrying apology ads in newspapers as well as payment of damages, the sources said, adding the two companies expect to reap sales of 7 billion yen from the new business in fiscal 2005.

Under their agreement, NTT Communications will assess the information management systems of companies, while Tokio Marine will take charge of setting premiums for the product based on the results of the assessment, they said.

Internet service provider Softbank BB Corp. paid more than 4 billion yen to cover losses in the wake of an information leak involving its 4.6 million subscribers.

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