AXA Launches Pioneering Heatwave Parametric Insurance

To safeguard outdoor practitioners amid escalating climate risks in the summer in Hong Kong

HONG KONG, Aug. 5, 2024 /PRNewswire/ -- AXA Hong Kong and Macau ("AXA") is committed to be a driving force against climate change, and leveraging its expertise in climate risk assessment to support businesses in addressing related risks and building a sustainable future. Today, we are pleased to announce the launch of the market-first "Heatwave Parametric Insurance", an offering that aims to provide enhanced protection for outdoor practitioners that work outdoor in the summer.

Climatological data over the past three decades paints a discernible picture – the annual mean temperature in Hong Kong has exhibited a statistically increase of 0.30°C per decade from 1994 to 2023^[1]. This alarming and persistent significant rise poses heightened risks 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. Recognising this pressing need, AXA took the lead to introduce the "Heatwave Parametric Insurance", providing flexible and convenient benefits for heat stress prevention and protecting affected practitioners.

The weather parametric insurance mechanism is easy and direct, with a modest premium of HKD19.9 per person. Insured individuals are eligible to receive a payout of HKD100 or an "anti-heatwave kit" of an equivalent value, when the temperature exceeds 36.0°C^[2] 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. To ensure a simple and convenient process, insured individuals are not required to prove damage or loss, and are not required to apply for additional claims or submit claim forms and supporting documents to receive the payout.

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. 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. 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."

The new product is supported by the robust scientific climate models developed by AXA. Over 150 dedicated experts around the world, including climatologists, data scientists, agronomists, finance experts and underwriting specialists, have contributed to its design. This product streamlines the claims process with a simplified payment trigger mechanism, effectively saving time for claims assessment procedures. Its straightforward accessibility makes it a practical solution for corporations seeking to strengthening workforce protection.

About AXA Hong Kong and Macau

AXA Hong Kong and Macau is a member of the AXA Group, a leading global insurer with presence in 51 markets and serving 94 million customers worldwide. Our purpose is to act for human progress by protecting what matters.

As one of the most diversified insurers in Hong Kong, we offer integrated solutions across Life, Health and General Insurance. We are the largest General Insurance provider and a major Health and Employee Benefits provider. Our aim is to not only be the insurer to provide comprehensive protection to our customers, but also a holistic partner to the individuals, businesses and community we serve. At the core of our service commitment is continuous product & service innovation and customer experience enrichment, which is achieved through actively listening to our customers' needs and leveraging and investing in technology and digital transformation.

We embrace our responsibility to be a driving force against climate change and a force for good to create shared value for our community. We are proud to be the first to address the importance of mental health through different products and services and thought leading iconic research. Our overall Sustainability Strategy, with emphasis on climate strategy and biodiversity commitment, is developed based on TCFD recommendations. We are committed to integrating environmental, social and governance factors across our business and strive to contribute to a sustainable future through 3 distinct roles - as an investor, insurer and an exemplary company.

THIS PRESS RELEASE IS AVAILABLE ON AXA'S WEBSITE: AXA.COM.HK 

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source: AXA Hong Kong and Macau