In a groundbreaking move, 50,000 self-employed women in India recently benefited from a unique insurance program designed to provide financial relief during extreme heat events.
As temperatures soared past 40 degrees Celsius (104 degrees Fahrenheit) between May 18 and May 25, these women, located in the states of Rajasthan, Gujarat, and Maharashtra, each received a direct payment of $5.
Kathy Baughman McLeod, CEO of the non-profit Climate Resilience for All, which collaborated with India’s Self-Employed Women’s Association (SEWA) to create the program, emphasized its significance: “This marks the first time insurance payouts and direct cash assistance have combined to supplement women’s income during dangerously hot conditions.”
Additional Payouts Based on Local Conditions
Beyond the initial $5 payment, the majority of the women (92%) received further payouts based on the specific local conditions and duration of the extreme heat. Some women received as much as $19.80 each, bringing the total payouts across the program to $341,553.
Insurance as a Tool for Climate Resilience
This innovative approach highlights the growing recognition of insurance as a valuable tool to provide swift financial support to vulnerable communities impacted by extreme weather events. Policymakers are increasingly exploring how insurance can enhance climate resilience.
The insurance was underwritten by reinsurer Swiss Re and provided locally by ICICI Lombard.