"Receive Up to 300,000 Won for Heatwaves, Am I Eligible Too?... 14.4 Million Already Enrolled in This Insurance"

Surging Interest in 'Climate Insurance' Amid Unprecedented Heatwaves
Emerging as a Social Safety Net for Protecting Vulnerable Groups

As heatwaves nearing 40 degrees Celsius become the new normal, "climate insurance" is emerging as a new social safety net. Unlike previous climate insurance that focused primarily on compensating property damage, the scope is now evolving to also protect against health impacts and income disruption. In particular, the recent introduction of public climate insurance models—automatically applied to local residents without any separate enrollment process or additional cost—is drawing attention as a new approach in responding to the climate crisis.

The Korea Meteorological Administration monitor in Dongjak-gu, Seoul, displays the highest temperature in the Seoul area. Photo by Yonhap News

'If You Don’t Know, You Lose'... Automatic Insurance Enrollment for 14.4 Million Residents in Gyeonggi Province

The most notable example is "Gyeonggi Climate Insurance," which is operated by Gyeonggi Province. About 14.4 million people including Gyeonggi residents, registered foreign nationals, and residents of foreign origin in the province are enrolled automatically, with no separate procedures required.

This insurance applies from April 11, 2026, to April 10, 2027. Claims can be filed within three years from the date of the accident or diagnosis. The coverage is broad, including not only heat-related illnesses due to heatwaves, but also cold-related illnesses, climate-related disasters, and infectious diseases.

On the 29th of last month, when a heatwave warning was issued in the Seoul area, shimmering heat waves rose above the scorching asphalt on Yeouidaero in Seoul.

Specifically, a diagnosis of a heat-related illness such as heat stroke, heat exhaustion, heat syncope, or heat cramps provides a payout of 150,000 won. Emergency room visits due to heat-related or cold-related illness or climate disaster are compensated with 100,000 won. Additionally, suffering an accident resulting in an official weather warning and a diagnosis requiring at least four weeks of treatment qualifies for a consolation payout of 300,000 won, and being diagnosed with an infectious disease such as malaria or tsutsugamushi disease entitles claimants to 200,000 won.

A key feature is that payouts are provided regardless of whether the insured already has private insurance, meaning duplicate compensation is possible. Gyeonggi Province covers the full cost of premiums, and five insurance companies participate: Meritz Fire & Marine Insurance as the lead insurer, along with NH NongHyup Property & Casualty Insurance, KB Insurance, Hanwha General Insurance, and Hyundai Marine & Fire Insurance.

Related image. Getty Images

There have already been numerous disbursements. Beneficiaries include students diagnosed with heat-related illnesses during outdoor field trips, citizens who experienced heat exhaustion during sports activities, and farmers who collapsed during agricultural work. Hundreds of payouts have been made so far this year, and the fund is considered sufficiently well-resourced to meet demand.

Jeju 'Heatwave Work Suspension Insurance'... Expanding to Income Protection

Climate insurance is rapidly evolving beyond health protection toward income stabilization. The most representative model is Jeju Province’s "heatwave work suspension insurance," which compensates part of the lost daily wage for construction day laborers when work is halted due to heatwaves.

This is a "parametric insurance" model: instead of proving individual damage, compensation is provided if two objective conditions are met—a heatwave warning issued by the Korea Meteorological Administration and work suspension due to the warning.

If construction is suspended due to a heatwave warning issued before 1 p.m., up to four hours per day can be compensated depending on the work stoppage duration, at approximately 17,000 won per hour.

On the 5th, when an extreme heat emergency alert close to 40 degrees Celsius was issued across Seoul, Gyeonggi, Honam, and other western regions, commuters around Seoul Station were seen carrying fans in their hands.

This simplified criteria for payout enables both administrative efficiency and promptness—an important advancement. At the same time, it directly targets income risks faced by vulnerable groups previously overlooked by insurance, such as day laborers and platform workers. In this sense, it represents a policy breakthrough.

Heatwaves Become Routine... Climate Insurance as a Social Safety Net

The background for the spread of climate insurance lies in the structural normalization of heatwaves. According to the Korea Disease Control and Prevention Agency, as of this year there have been 2,441 heat-related illness cases and 21 deaths. Notably, about one-third of all patients are aged 65 or older, and 78% of cases occurred outdoors.

Within the insurance industry, construction day laborers, delivery platform workers, small business owners, and older adults are cited as representative climate-vulnerable groups. As damage concentrates within certain segments of the population, climate insurance is evolving beyond property coverage to serve as a social safety net, jointly protecting both health and income. The key point is that what used to be a simple insurance product is rapidly expanding into core policy infrastructure.

Private Insurers Join... Signaling Market Expansion

Private insurance companies are also responding quickly. Tongyang Life Insurance has launched a "mini insurance" policy covering heatwaves and cold spells, and KB Insurance has added special riders for heat-related and cold-related illnesses to travel insurance. NH NongHyup Property & Casualty Insurance is operating a product designed for livestock farms highly vulnerable to heatwave damage. In addition, index-based insurance models for traditional market merchants based on weather indices are spreading across different industries.

However, the domestic market is still in its early stages. Due to insufficient data accumulation related to climate risk, most products are organized as collaborations with local governments or as group insurance packages rather than for individual consumers. If data infrastructure is further advanced in the future, climate insurance is expected to expand rapidly into various industries and everyday life.

This content was produced with the assistance of AI translation services.