The China Mail - In India, heat-triggered insurance offers 'some relief'

USD -
AED 3.672502
AFN 66.500258
ALL 82.349807
AMD 367.854053
ANG 1.790258
AOA 917.000281
ARS 1482.994298
AUD 1.442263
AWG 1.80025
AZN 1.702583
BAM 1.717897
BBD 2.023127
BDT 123.822448
BGN 1.717508
BHD 0.378736
BIF 2998.151133
BMD 1
BND 1.297545
BOB 6.923833
BRL 5.134503
BSD 1.004493
BTN 95.993395
BWP 13.613347
BYN 2.86496
BYR 19600
BZD 2.020043
CAD 1.41301
CDF 2257.999797
CHF 0.814005
CLF 0.023655
CLP 931.000597
CNY 6.78025
CNH 6.780485
COP 3237.71
CRC 457.551935
CUC 1
CUP 26.5
CVE 96.851545
CZK 21.329199
DJF 178.869287
DKK 6.56284
DOP 59.080329
DZD 133.305031
EGP 50.199802
ERN 15
ETB 161.457149
EUR 0.87795
FJD 2.232703
FKP 0.747301
GBP 0.748465
GEL 2.625022
GGP 0.747301
GHS 11.551367
GIP 0.747301
GMD 72.999941
GNF 8809.605368
GTQ 7.66714
GYD 210.117654
HKD 7.83805
HNL 26.879647
HRK 6.613399
HTG 131.450781
HUF 315.463001
IDR 18097.3
ILS 3.02455
IMP 0.747301
INR 96.140701
IQD 1315.883089
IRR 1375000.000272
ISK 125.709932
JEP 0.747301
JMD 159.664124
JOD 0.709021
JPY 162.316497
KES 129.240085
KGS 87.449477
KHR 4062.273556
KMF 433.000227
KPW 900.000068
KRW 1491.090007
KWD 0.30969
KYD 0.837085
KZT 475.476073
LAK 22650.955867
LBP 89518.950885
LKR 337.423582
LRD 182.310858
LSL 16.419747
LTL 2.95274
LVL 0.60489
LYD 6.446286
MAD 9.345402
MDL 17.628536
MGA 4272.306861
MKD 54.100188
MMK 2099.937768
MNT 3585.974961
MOP 8.109884
MRU 40.017567
MUR 47.310309
MVR 15.459761
MWK 1736.501885
MXN 17.48914
MYR 4.077604
MZN 63.909791
NAD 16.419963
NGN 1385.53014
NIO 36.660146
NOK 9.764505
NPR 153.58556
NZD 1.726415
OMR 0.384495
PAB 1.004484
PEN 3.423996
PGK 4.37815
PHP 61.671499
PKR 279.162052
PLN 3.804255
PYG 6099.333764
QAR 3.662467
RON 4.592699
RSD 103.057001
RUB 76.646678
RWF 1479.998068
SAR 3.761464
SBD 8.058541
SCR 14.768029
SDG 600.524696
SEK 9.70545
SGD 1.293165
SHP 0.746601
SLE 24.350276
SLL 20969.507346
SOS 571.500974
SRD 37.664502
STD 20697.981008
STN 21.519165
SVC 8.78895
SYP 110.532098
SZL 16.423436
THB 33.503503
TJS 9.291213
TMT 3.51
TND 2.971555
TOP 2.40776
TRY 47.037196
TTD 6.83016
TWD 32.168499
TZS 2632.497998
UAH 44.923869
UGX 3706.615254
UYU 40.413534
UZS 12141.574109
VES 723.093992
VND 26252
VUV 119.718663
WST 2.760172
XAF 576.15139
XAG 0.017179
XAU 0.000248
XCD 2.70255
XCG 1.810308
XDR 0.71656
XOF 572.511502
XPF 104.753247
YER 237.09594
ZAR 16.44902
ZMK 9001.202631
ZMW 18.054702
ZWL 321.999592
  • CMSC

    -0.0200

    22.065

    -0.09%

  • BCC

    -1.3400

    74.72

    -1.79%

  • JRI

    0.0300

    13.04

    +0.23%

  • RYCEF

    -0.5900

    18.87

    -3.13%

  • RIO

    -0.6900

    89.85

    -0.77%

  • CMSD

    -0.0500

    22.33

    -0.22%

  • RELX

    0.9800

    33.42

    +2.93%

  • RBGPF

    0.0000

    67.35

    0%

  • NGG

    0.6900

    83.28

    +0.83%

  • BCE

    0.0700

    21.45

    +0.33%

  • VOD

    0.7500

    15.47

    +4.85%

  • GSK

    -0.4900

    52.29

    -0.94%

  • BTI

    -1.0700

    58.95

    -1.82%

  • AZN

    -2.1400

    169.47

    -1.26%

  • BP

    1.6300

    40.83

    +3.99%

In India, heat-triggered insurance offers 'some relief'
In India, heat-triggered insurance offers 'some relief' / Photo: © AFP

In India, heat-triggered insurance offers 'some relief'

Clothes seller Lata Solanki used to face a devastating choice when India's summer heat hit dangerous levels: risk her health going door-to-door for sales, or lose her income?

Text size:

But now the 42-year-old is part of an insurance scheme that pays out when temperatures hit a threshold, so she can stay home without jeopardising her finances.

The "parametric" model pays out automatically when specific triggers are breached, in Solanki's case after two consecutive days at 43.72 degrees Celsius.

The payout is modest, but it helps, she told AFP in Ahmedabad, one of India's hottest cities.

"At least we feel there is some support," she said. "Because of the heat, the fan runs day and night. The bill goes up."

In 2023, the year before she joined the scheme, Solanki kept working during a heatwave and ended up sick at home for 20 days, losing at least 2,000 rupees ($21) in income.

The following year, she received 750 rupees from the scheme, small but more than the cost of the premium, and a relief in a country where the average monthly rural household income is 10,000 rupees ($105).

India lost an estimated 247 billion hours of labour to extreme heat in 2024, equivalent to nearly $194 billion in economic losses, according to the Lancet Countdown research group.

Agriculture and construction bore the brunt, and climate change is accelerating the number of days of extreme heat India sees.

Parametric insurance is seen as a way to protect the most vulnerable from climate impacts like heat, but also heavy rain.

In India's northeastern state of Nagaland, the government has insured its entire population against economic losses due to heavy rainfall under a parametric model since 2024.

The federal government is examining how to extend the schemes more widely to "supplement insurance mechanisms and reinforce protection to the people".

- 'Some relief' -

Unlike traditional insurance, parametric policies do not require individual damage assessments.

Instead, payouts are triggered automatically by heavy rain, high heat or even air pollution.

The scheme helping Solanki is a collaboration between the non-profit Mahila Housing Trust (MHT) and global insurer Go Digit, supported by the Climate Resilience for All initiative.

MHT programme manager Nital Rahul Patel said the idea emerged after surveys and discussions with women workers in Ahmedabad, where temperatures sometimes hit 45C (113F).

"They would say it is very hot every year," she said. "But when we broke down their expenses, we realised incomes were falling by 2,000-2,500 rupees ($21-26) over four months of summer."

The scheme began in 2024 with 26,000 women across Gujarat. Their 354-rupee premium was covered by Climate Resilience for All.

In 2025 enrolment rose, but the scheme made no payments because the temperature threshold was not met.

This year, the trigger has been revised down to 42.74 degrees Celcius, and the scheme aims to cover more than 30,000 women.

If temperatures hit the threshold for two days, they will qualify for payments ranging from 850 to 2,000 rupees ($21).

Higher temperatures trigger higher payments, but the amount is a one-off, not cumulative. It is assessed and paid at the end of the heat season in September.

Rakhi Gulshan Singh, a seamstress earning around 4,000 rupees a month, signed up even though she works indoors.

"When I run the sewing machine, it becomes even hotter," the 30-year-old said, who got a payout in 2024. "It is small, but it gives some relief."

- 'Faster and more transparent' -

Adarsh Agarwal, appointed actuary at Go Digit, said his company has covered more than 50,000 people since it began working on parametric insurance two years ago.

While still a "niche product", he said demand has increased.

There is now "more knowledge and more curiosity", he told AFP, and his firm has offered both heat and air-quality parametric schemes.

Payment thresholds are set based on historical weather data and intended to be "practical, sustainable and aligned to the intended segment while managing basis risk", he added.

The schemes can be "faster and more transparent" than traditional insurance, said Aniruddha Bhattacharjee, senior researcher for climate resilience and engineering at Climate Trends.

But payouts tend to be small, and effectiveness depends on how accurately trigger thresholds reflect actual ground realities, since models are largely built on historical data.

India's government weather forecasters are already predicting boiling, above-average temperatures in May and June, which Solanki joked might turn out to be good news.

"Maybe we will get a payout," she said.

But regardless, she plans to stay enrolled "even if it means paying the premium from our pockets".

G.Fung--ThChM