AXA Hong Kong and Macau has unveiled the market-first heatwave parametric insurance to provide enhanced protection for outdoor practitioners in the summer.
The new product aims to address the escalating climate risks in Hong Kong for certain occupations, such as construction workers, property management staff, as well as practitioners in the public utility and transportation sectors, who are routinely exposed to outdoor conditions during extreme heat events.
According to the firm, it will provide flexible and convenient benefits for heat stress prevention and protection for affected practitioners. Over 150 dedicated experts around the world, including climatologists, data scientists, agronomists, finance experts, and underwriting specialists, have contributed to its design.
With a premium of HK$19.90 (US$2.56) per person, when the temperature exceeds 36.0°C for three consecutive days during the period of August to October, eligible insured individuals will receive a payout of HK$100 or an ‘anti-heatwave kit’ of an equivalent value.
AXA will continuously monitor temperature levels and proactively inform and compensate customers when the predetermined trigger is met.
Emily Li, chief employee benefits and wellness officer at AXA Hong Kong and Macau, says: "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."
