AXA launches Hong Kong heatwave parametric cover for outdoor workers
AXA Hong Kong and Macau has launched what it calls the market-first heatwave parametric insurance, an offering that aims to provide enhanced protection for outdoor practitioners that work outdoors in the summer.
The insurer said that it is committed to be a “driving force against climate change, and leveraging its expertise in climate risk assessment to support businesses in addressing related risks and building a sustainable future”.
AXA explains that climatological data over the past three decades paints a discernible picture – the annual mean temperature in Hong Kong has exhibited a statistically significant increase of 0.3°C per decade from 1994 to 2023.
“This alarming and persistent significant rise poses heightened risks for certain occupations, such as construction workers and property management staff, as well as practitioners in the public utility and transportation sectors, who are routinely exposed to outdoor conditions during extreme heat events. Recognising this pressing need, AXA took the lead to introduce the heatwave parametric insurance, providing flexible and convenient benefits for heat stress prevention and protecting affected practitioners,” said the insurer.
The weather parametric insurance mechanism is simple, with a modest premium of HKD19.9 per person. Insured individuals are eligible to receive a payout of HKD100 or an “anti-heatwave kit” of an equivalent value, when the temperature exceeds 36.0°C for three consecutive days during the period of August to October, AXA explained.
It said that it will continuously monitor temperature levels and proactively inform and compensate customers when the predetermined trigger is met.
To ensure a simple and convenient process, insured individuals are not required to prove damage or loss, and are not required to apply for additional claims or submit claim forms and supporting documents to receive the payout, said the insurer.
Emily Li, chief employee benefits & wellness officer, AXA Hong Kong and Macau, said: “Global warming is driving extreme climate conditions, with Hong Kong’s hot weather continuing to intensify, posing health risks to the public. Corporations play a critical role in addressing these climatic challenges by ensuring an optimal employee benefits strategy to support and protect employees in this rapidly evolving world.
“Our new product is notable as the first parametric insurance in the city tailored to mitigate the impacts of climate change on employees. It serves as a testament to our expertise in protection and our comprehensive insights into climate dynamics.”
AXA said that the new product is supported by the “robust” scientific climate models it has developed. More than 150 dedicated experts around the world, including climatologists, data scientists, agronomists, finance experts and underwriting specialists, have contributed to its design.
