AXA offers heatwave product for outdoor workers
AXA has launched a heatwaverelated insurance product in Hong Kong, the first of its kind in the city, to provide cover for outdoor workers as summer reaches its peak.
With a premium of HK$19.90 per person, the heatwave parametric insurance ensured individuals were eligible for a payout of HK$100, or an “anti-heatwave kit” of an equivalent value, when the temperature exceeded 36 degrees Celsius for three consecutive days from August to October, the French insurer said yesterday.
AXA said it would continue to monitor temperature levels and compensate customers when the predetermined trigger was met.
Insured individuals were not required to prove damage or loss, or submit claim forms and supporting documents to receive the payout, it added.
“Global warming is driving extreme climate conditions, with the hot weather continuing to intensify and posing health risks,” said Emily Li, chief employee benefits and wellness officer at AXA Hong Kong and Macau.
Like most parts of the mainland and the rest of the world, Hong Kong is seeing unprecedented heatwaves, recording its hottest June in more than 40 years.
In the past 30 years, the annual mean temperature in the city had exhibited an increase of 0.3 degree per decade from 1994, data from the Observatory showed.
A recent study from the University of Hong Kong estimated the 18 heatwaves recorded in Hong Kong over the last 10 years might have contributed to more than 1,600 deaths.
The worsening heatwaves could bring heightened risks for construction workers, property management staff, and those employed in the transport and utility sectors, who are routinely exposed to extreme heat, according to AXA.
“Corporations play a critical role in addressing these climatic challenges by ensuring an optimal benefit strategy to support and protect employees in this rapidly evolving world,” Li said.
The Earth experienced its hottest day in recent history on July 22, according to a Nasa analysis of 60 years of global data. Scientists have warned 2024 had a 95 per cent chance of setting an annual heat record after 2023 was confirmed as the hottest year ever.
Unlike traditional insurance, parametric insurance pays out a predetermined amount based on the occurrence and intensity of a specific event upon proof of loss.