As Extreme Heat Threats Grow, Can Heat Insurance Offer Protection?

As climate change drives increasing deadly and costly global and local heat extremes, efforts to limit their impact on the health and incomes of the most vulnerable are increasingly needed. Women workers are among those disproportionately affected by heat. Many work in the informal economy where they have limited protections and lower incomes. Demands on their time in terms of household and family responsibilities—as well as cultural restrictions—can add to their heat exposure and limit their ability to reduce it. Urban women can be at particular risk because of the “heat island effect” that makes cities significantly hotter than surrounding areas. Parametric heat insurance policies, now in place in India, show promise to lower risks and support women financially during extreme heat waves. They also provide a means to move climate aid to frontline communities most in need of it, while building women’s own financial skills to manage climate risks. Insurance policies are being combined with other heat adaptations—such as accessible cooling spaces and early warning systems—to remain effective as heat extremes grow.