AXA Launches Heatwave Parametric Insurance

AXA Hong Kong and Macau has introduced a pioneering "Heatwave Parametric Insurance" to protect outdoor workers in Hong Kong from increasing climate risks during the summer. This new offering addresses the growing threat of heat waves exacerbated by climate change.

Over the past 3 decades, Hong Kong's average annual temperature has risen by 0.30°C per decade, posing significant risks to outdoor workers, including those in construction, property management, and public utilities. AXA's new insurance product provides these workers with flexible benefits for heat stress prevention.

The insurance mechanism is straightforward and affordable, with a premium of HKD19.9 per person. Insured individuals receive a payout of HKD100 or an "anti-heatwave kit" when temperatures exceed 36.0°C for 3 consecutive days from August to October. AXA monitors temperature levels and informs customers when the trigger is met, eliminating the need for damage proof or additional claims.

Emily Li, chief employee benefits and wellness officer, AXA Hong Kong and Macau, highlighted the critical role corporations play in protecting employees from extreme climate conditions. She stated, "Our new product is notable as the first parametric insurance in the city tailored to mitigate the impacts of climate change on employees."

The product is supported by AXA-developed climate models, simplifying the claims process and providing practical solutions for corporations to enhance workforce protection.