AXA launches new parametric product for outdoor practitioners working in the Hong Kong summer

AXA Hong Kong and Macau has announced the launch of the market-first “Heatwave Parametric Insurance”, a new offer created to provide enhanced protection for outdoor practitioners amid escalating climate risks in the summer in Hong Kong.

According to the Hong Kong Observatory the annual mean temperature in Hong Kong has exhibited a statistically increase of 0.30°C per decade from 1994 to 2023.

“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,” AXA explains.

Highlighting: “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.”

As a parametric product, AXA’s new weather insurance solution streamlines the claims process with a simplified payment trigger mechanism, which helps to save time for claims assessment procedures.

With a modest premium of HKD19.9 per person, when the temperature exceeds 36.0°C eligible insured individuals will receive a payout of HKD100 or an “anti-heatwave kit” of an equivalent value.

The insurer also said that it will continuously monitor temperature levels and proactively inform and compensate customers when the predetermined trigger is met.

It also noted that 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, this, to ensure a simple and convenient process.

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.”

Li concluded: “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.”

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