AXA launches Hong Kong’s first heatwave insurance to protect outdoor workers
- The payout from the insurance comes into force when the temperature stays above 36 degrees for three consecutive days from August to October
AXA has launched a heatwave-related insurance product in Hong Kong, the first of its kind in the city, to provide outdoor workers cover as summer reaches its peak.
With a premium of HK$19.90 per person (US$2.55), the heatwave parametric insurance ensures individuals are eligible for a payout of HK$100, or an “anti-heatwave kit” of an equivalent value, when the temperature exceeds 36 degrees Celsius for three consecutive days from August to October, the French insurer said on Monday.
AXA said in a statement it will continuously monitor temperature levels and compensate customers when the predetermined trigger is met. Insured individuals are not required to prove damage or loss and are not required submit claim forms or supporting documents to receive the payout, it added.
“Global warming is driving extreme climate conditions, with Hong Kong’s hot weather continuing to intensify and posing health risks to the public,” Emily Li, chief employee benefits and wellness officer at AXA Hong Kong and Macau, said in the statement.
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Scorching reality: Hong Kong struggles to adapt to living and working in a hotter world
Like most parts of mainland China and the rest of the world, Hong Kong is seeing unprecedented heatwaves, with the city recording its hottest June in more than 40 years. In the past three decades, the annual mean temperature in Hong Kong has exhibited an increase of 0.3 degrees per decade from 1994 to 2023, data from the Hong Kong Observatory showed.
A recent study from the University of Hong Kong estimated that the 18 heatwaves recorded in Hong Kong over the last 10 years may have contributed to more than 1,600 deaths.
