Kathmandu. The Swiss Re Institute points out that the impact of extreme heat on health and safety could increase claims on life and health insurance, as well as workers’ compensation.
According to the Soner 2025 report released by the Institute on Thursday, by 2020, about 71 percent of the world’s working population is at risk of extreme heat, and by 2025 this population will increase further.
More vulnerable populations at risk of heat are mostly in areas with less access to life and health insurance. However, the mortality rate of insured people is expected to be lower.
Extreme heat can put pressure on the healthcare system, increasing the number of hospitalizations and putting additional burden on facilities and equipment. The hot weather has affected the reaction time of the ambulance, and there has been excessive heat in the surgery cancellation and surgery rooms.
Heat pressure on the electrical grid increases the risk of electricity loss, thereby increasing the risk of mortality and disease, especially when vulnerable groups rely on air conditioning to avoid exposure.
In addition, disruptions in cold storage and transportation infrastructure, especially in developing countries, can damage active medicinal ingredients, leading to financial losses and outbreaks of vaccine-preventable diseases.
Workplace accidents are more likely when employees work under heat stress. This could lead to an increase in medical and workers’ compensation claims. Employers who do not provide adequate water, rest time, and other preventive measures may face employer liability claims.
The first symptoms of heat stress can be common, but prolonged exposure to it can have serious health effects. This can include fatigue, heat stroke, kidney problems, and exacerbations of pre-existing heart and respiratory diseases, including death.
The incidence, intensity, and length of luke waves are increasing. Factors at risk of extreme heat include increasing age, pregnancy, and poor socioeconomic status.
Similarly, outdoor event organizers, municipalities, and schools, etc., may also be at risk of liability if they do not perform their duties of proper care. To help prevent such situations, insurance companies can provide innovative covers such as parametric insurance for income protection in extreme heat events.
According to the report, as temperatures rise, extreme heat events, such as warmer than 90 percent of locally recorded temperatures, are also increasing. Between June 2023 and April 2024, there were 76 heat waves in 90 countries. More than 6 billion people (about 78 percent of the world’s population) experienced extreme heat for at least 31 days. Since 1991, such conditions are more likely to double.
