Tokio Marine to Launch Insurance for Autonomous Mobile Robots Next Month, a First in Japan's Insurance Industry

Tokio Marine Nichido Fire Insurance will begin selling insurance specifically for 'physical AI' robots with autonomous mobility next month, the first such product in the Japanese insurance industry. Coverage applies to mobile robots that use sensors and cameras to recognize their surroundings and adjust their own movements, regardless of how they get around—whether walking on two legs or four, or moving on wheels.

Coverage includes repair costs when the robot is damaged by disasters or collisions, as well as compensation for harm caused to third parties by malfunctions. The policy also covers rental fees for replacement equipment needed during breakdowns or repairs. However, damage from cyberattacks is excluded, and this risk must be addressed separately through cyber insurance.

Physical AI is a technology in which artificial intelligence recognizes and assesses real physical environments to control the movements of devices. The Japanese government projects that the global market for physical AI robots will reach approximately 60 trillion yen by 2040 and plans to invest a combined 10.5 trillion yen from public and private sectors in the field.

Noting that, on top of the price of the robots themselves, high repair costs and liability in the event of accidents burden companies looking to adopt them, Tokio Marine developed this product to encourage robot adoption in labor-shortage workplaces such as caregiving, hospitality, logistics, and construction. The insurance provides companies with a way to manage the risks of robot breakdowns and accidents through coverage. As the use of robots expands, the importance of such risk-management tools is expected to grow.