A parametric microinsurance product covering heatwaves has been triggered in India, providing relief to nearly 50,000 low-income women following extreme heat conditions in May.
The Women’s Climate Shock Insurance and Livelihoods Initiative (WCS) was designed by Climate Resilience for All and the Self-Employed Women’s Association (SEWA). The product is underwritten by Swiss Re with ICICI Lombard acting as the local provider.
In a statement, Climate Resilience for All said that from 18 May to 25 May 2024, temperatures in 22 districts across Rajasthan, Maharashtra, and Gujarat exceeded 40 degrees Celsius, triggering the parametric payout.
92% (46,242) of the 50,000 women enrolled in the scheme received payments totalling US$341,553, at an average payout of US$7.38 in the other districts. The highest insurance payout was US$19.80 per member in the Dungarpur district. Each enrolled member received a minimum of a US$5 cash payment.
“This is the first time that insurance payouts and a direct cash assistance program have been combined to supplement the income of women when it’s dangerously hot,” said Kathy Baughman McLeod, CEO of Climate Resilience for All.
Veronica Scotti, Chair of Public Sector Solutions at Swiss Re, added, “I’m proud that Swiss Re’s technical expertise was behind the design and structuring of this innovative parametric microinsurance solution. It’s fulfilling of our purpose to build resilience, that over 46,000 women have benefited from our earnings protection cover following the recent extreme heat waves in India.”
The WCS product targets SEWA members working in the informal sector, who face health risks and economic losses due to extreme heat. Tragically, several SEWA members lost their lives to extreme heat in May 2024.
Arunaben Makwana, a SEWA member, said, “The money from the program has allowed me to pay for my medical expenses and to buy food for my family.”
Reema Nanavaty, Director of SEWA, highlighted the impact of the scheme: “The money our sisters have received through this package of insurance money and income supplement is putting food on the table and protecting the little income they bring. One day of support is feeding their families for a week.”
The WCS product aims to roll out to other regions in India, East, and West Africa in the coming year. The initiative seeks to help women adapt to climate change, protect their health, sustain their livelihoods, and avoid falling into extreme poverty.
