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Japan-based Mitsui Sumitomo Insurance Co. Ltd. plans to launch an insurance product that will cover damage caused by weather conditions, Nikkei Asian Review reports. The insurer partnered with NASA to develop the product, which applies a concept called "weather derivatives" to guarantee that policyholders will receive a payout based on previously agreed-upon conditions regarding temperatures, rainfall and other weather-related factors. The insurer expects the plan to encourage companies to expand into regions that are vulnerable to drought and other severe conditions, particularly in emerging economies in Southeast Asia.
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