Parametric Insurance introduced in India for Women Daily Wagers

By: WE Staff | Monday, 14 October 2024

Women wage workers suffer through many challenges earning for their families, specifically in developing countries. The most significant impact is vulnerable climate impacts due to their role in agriculture, water collection, and informal economies. Gender biases in a persistent issue that leads to financial insecurity and receiving less access to credit and traditional insurance products. In order to combat such issues and improve daily wage women's working conditions, Parametric Cover has been introduced in India by joint forces between Global non-governmental organizations (NGOs) like Climate Resilience for All (CRA) and Self-Employed Women's Association (SEWA).

Parametric Insurance is a first-of-its-kind program that aims to protect women's income from the adverse effects of climate change and offers quick payouts based on predefined triggers, such as temperature thresholds, rainfall levels, or floods. A senior government official mentioned, "In northern India, where severe cold waves affect agriculture, livestock, and human health, parametric insurance could be used to provide coverage based on temperature thresholds. This approach is particularly crucial in a country like India, which experiences natural disasters quite frequently."

The parametric cover will offer cash up to Rs 1,800 on the cruciality of weather conditions. The female wager will receive Rs 400 if the temperature rises above 40 degrees Celsius, whereas above 43 degrees Celsius, the beneficiary will receive an amount between Rs 535 and Rs 1,800. Reinsurer Swiss Re and ICICI Lombard have developed an innovative parametric product to protect women workers' income, partnering with governments and civil society.