India’s women workers turn to heat insurance as soaring temperatures threaten health and livelihoods

In Ahmedabad, India’s hottest cities, women workers like Lata Solanki now rely on a parametric heat insurance scheme to protect their livelihoods during extreme heat. The program, launched in 2024 by the non-profit Mahila Housing Trust (MHT) and global insurer Go Digit, pays out automatically when temperatures hit 42.74°C for two consecutive days, offering financial relief without requiring damage assessments. Solanki, a 42-year-old clothes seller, faced a difficult choice before joining the scheme: work in scorching heat or risk losing income. In 2023, she worked through a heatwave and fell ill for 20 days, losing around 2,000 rupees. The following year, she received 750 rupees from the scheme, a small but meaningful payout given India’s average rural household income of 10,000 rupees per month. The scheme initially covered 26,000 women in Gujarat, with premiums subsidized by Climate Resilience for All. In 2025, enrollment grew, but no payouts were made as temperatures did not meet the threshold. This year, the trigger was lowered to 42.74°C, and the scheme now aims to cover over 30,000 women, with payments ranging from 850 to 2,000 rupees depending on heat intensity. Parametric insurance is gaining traction as a tool to protect vulnerable populations from climate impacts. India’s northeastern state of Nagaland has insured its entire population against economic losses from heavy rainfall under a similar model. The federal government is exploring ways to expand such schemes nationwide to supplement existing protections. Go Digit, which has covered over 50,000 people since launching its parametric insurance two years ago, reports growing demand. Adarsh Agarwal, the company’s actuary, notes increased awareness and curiosity about these schemes, which now include both heat and air-quality triggers. The payouts, though modest, provide critical support for workers like seamstress Rakhi Gulshan Singh, who earns 4,000 rupees monthly and received a payout in 2024. Extreme heat in India has devastating economic consequences, costing an estimated 247 billion hours of labor in 2024, equivalent to $194 billion in losses. Climate change is worsening the frequency of heatwaves, particularly affecting agriculture and construction sectors. The parametric insurance model offers a faster, more transparent solution compared to traditional insurance, which requires individual damage assessments.