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

AXA Hong Kong and Macau (“AXA”) is committed to being 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 statistical increase of 0.30°C per decade from 1994 to 2023¹. 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°C² 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.