In a groundbreaking collaboration, CelsiusPro’s Global Parametrics team, along with partners Mahila Housing Trust, Howden Insurance Brokers Limited, and Go Digit General Insurance, has launched a climate risk insurance (CRI) product tailored to provide financial security for women in India’s informal sector, particularly against the impacts of extreme heatwaves.
India’s informal sector, where 80% of the workforce operates, sees a significant presence of impoverished women, constituting approximately 90-92% of this demographic. Many of these women, often working from home, endure basic living and working conditions.
The ramifications of extreme heatwaves extend beyond mere discomfort, impacting housing, livelihoods, and health infrastructure. Due to the nature of their work, these women are often confined to their homes during such severe weather events.
The absence of adequate climate resilience and risk mitigation measures exacerbates the challenges faced by these vulnerable communities, with the frequency and severity of heatwaves expected to intensify.
To tackle these issues head-on, the CRI product will leverage the risk capacity of the Natural Disaster Fund (NDF), overseen by CelsiusPro’s Global Parametrics team. It will extend coverage to three women’s credit cooperatives in Ahmedabad, Vadodara, and Surat, safeguarding them against the financial risks posed by extreme heat.
Furthermore, this initiative is set to introduce an innovative insurance product into the market, facilitating the rapid expansion of scalable risk transfer programs into communities with limited access to financial services. This strategic move aims to enhance resilience and promote financial inclusion among vulnerable women in India’s informal sector.
