How heat-linked insurance opens a $194-billion opportunity in India

This report covers key India-focused updates related to loans, EMI, interest rates and banking. MC EXPLAINER How heat-linked insurance opens a $194-billion opportunity in India Indian insurers have started rolling out “parametric insurance” as temperatures rise across the country, disproportionately affecting construction workers, delivery personnel, street vendors, agricultural labourers and gig workers who spend long hours outdoors. Unlike traditional insurance policies which require claims to be filed and losses to be verified, parametric insurance automatically pays out when predefined weather conditions are met. The development comes as India faces mounting economic losses from climate change. According to multiple reports online, the country lost nearly 247 billion labour hours due to extreme heat in 2024, translating into approximately $194 billion in economic losses.