A pioneering insurance scheme has provided relief to a group of 50,000 self-employed women in India, offering payouts triggered by extreme temperatures.
As temperatures soared above 40 degrees Celsius (104 degrees Fahrenheit) from May 18 to May 25, women in Rajasthan, Gujarat, and Maharashtra received a flat payment of $5 each. This unique initiative marks the first instance of combining insurance payouts with direct cash assistance to augment the income of women during dangerously hot weather.
Kathy Baughman McLeod, CEO of the non-profit organization Climate Resilience for All, collaborated with India’s Self-Employed Women’s Association (SEWA) to design the scheme. Subsequently, 92% of the women received additional payouts, ranging up to $19.80, based on insurance tied to local weather conditions and the duration of extreme heat.
This innovative approach underscores the growing recognition of insurance as a vital tool for swiftly delivering financial aid to vulnerable communities following extreme weather events. The scheme, underwritten by reinsurer Swiss Re and administered locally by ICICI Lombard, facilitated total payments of $341,553 across the program.
