AXA Hong Kong and Macau has announced a new insurance product designed to address the increasing risks associated with extreme heat.
Data over the past 30 years shows a steady increase in Hong Kong’s average annual temperature, with an upward trend of 0.30°C per decade from 1994 to 2023. This warming pattern heightens the danger for outdoor workers.
AXA Hong Kong and Macau’s “Heatwave Parametric Insurance” offers protection for employees working outdoors, particularly in sectors such as construction, property management, public utilities, and transportation.
AXA Hong Kong and Macau’s new offering aims to provide a straightforward solution to help businesses safeguard their workforce. It uses a weather parametric model, offering coverage at a premium of HK$19.9 per person.
If temperatures exceed 36.0°C for three consecutive days between August and October, policyholders receive a payout of HK$100 or an equivalent “anti-heatwave kit.” The process is streamlined; no evidence of damage or loss is required, and there is no need for additional claims submissions or supporting documentation.
Emily Li, chief employee benefits and wellness officer at AXA Hong Kong and Macau, emphasised the importance of corporate responsibility in protecting employees amidst growing climate risks.
“Global warming is driving extreme climate conditions, with Hong Kong’s hot weather continuing to intensify and posing health risks to the public. 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,” she said.
She said that this product is the first of its kind in Hong Kong, aimed specifically at reducing the impact of heatwaves on outdoor workers.
“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. This initiative exemplifies our commitment to integrating sustainability into our business propositions, and providing enhanced protection for a workforce facing increased risks due to changing environmental conditions,” she said.
AXA’s global team of over 150 specialists, including climatologists and data scientists, played a significant role in developing this product.
The insurance simplifies the claims process through a clear payout trigger mechanism, the company said.
AXA Hong Kong and Macau also recently teamed up with a travel agency to launch a product line that offers various levels of coverage to address different traveller needs.
