AXA launches market-first heatwave parametric insurance offering

AXA Hong Kong and Macau has unveiled what it calls a market-first heatwave parametric insurance, an offering that aims to provide enhanced protection for outdoor practitioners who work outdoors in the summer months.

The insurer said climatological data over the past three decades paints a discernible picture: the annual mean temperature in Hong Kong has exhibited a statistical increase of 0.3°C per decade from 1994 to 2023. This significant rise poses heightened risks for certain occupations, such as construction workers, property management staff and other workers exposed to outdoor conditions during extreme heat events. 

“Insured individuals are not required to prove damage or loss.”

The weather parametric insurance mechanism allows insured individuals to receive a payout of HK$100 or an “anti-heatwave kit” of an equivalent value, when the temperature exceeds 36°C for three consecutive days during the period of August to October. 

AXA will continuously monitor temperature levels and proactively inform and compensate customers when the predetermined trigger is met. Insured individuals are not required to prove damage or loss, and are not required to apply for additional claims or submit claim forms.

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 and posing health risks to the public. 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.”

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