AXA Hong Kong and Macau (AXA), a member of France’s AXA Group, has launched a new Heatwave Parametric Insurance offering in Hong Kong.
The new offering is designed to provide protection for outdoor workers against the risks of rising temperatures.
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It comes as a response to the increase in the annual mean temperature in Hong Kong, which has risen by 0.30°C per decade from 1994 to 2023.
AXA said this trend poses a serious threat to the health and safety of individuals working in sectors such as construction, property management and transportation.
This insurance product by AXA is tailored to address the needs of those at risk during extreme heat events.
The parametric nature of the insurance means that payouts are triggered when specific conditions are met, in this case, when temperatures exceed 36°C for three consecutive days between August and October.
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By GlobalDataInsured individuals can receive a payout of HK$100 ($12.83) or an “anti-heatwave kit” of equal value without the need for submitting claims or proving loss.
The premium for this insurance is set at HK$19.9 per person.
This parametric approach eliminates the traditional claims process, allowing for immediate compensation once the temperature threshold is reached.
The company will actively monitor temperature levels and inform customers when they are eligible for the payout.
The development of the Heatwave Parametric Insurance is backed by AXA’s scientific climate models and the expertise of more than 150 professionals worldwide.
These experts, ranging from climatologists to underwriting specialists, have contributed to the product’s design, ensuring it meets the specific needs of those it aims to protect.
AXA Hong Kong and Macau chief employee benefits & wellness officer Emily Li said: “Global warming is driving extreme climate conditions, with Hong Kong’s hot weather continuing to intensify and 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.”
Recently, the insurer agreed to acquire Gruppo Nobis (Nobis) as part of its expansion into the Italian market.
