Boheomyeon 'Climate Change and Health Equity' Report Published
An analysis has emerged suggesting that insurance companies need to develop microinsurance products for low-income groups because climate change can exacerbate health inequalities across social strata.
On the 26th, the Korea Insurance Research Institute claimed in its report titled 'Climate Change and Health Equity' that climate change, such as rising temperatures, increased air pollution, and frequent extreme weather events, poses threats to people's health and safety.
Air pollution and extreme temperatures affect heart-related diseases. Air pollution, heatwaves, and wind and flood damage also impact respiratory diseases such as asthma. The overall temperature and number of heatwave days in Korea are on the rise, and air pollution indices such as fine dust and ozone are worsening.
It is analyzed that climate change disproportionately impacts marginalized communities, potentially deepening health inequalities across social classes. Vulnerable groups tend to live in poor housing conditions and have high participation in outdoor labor.
The Insurance Research Institute argued that insurance companies need to supply microinsurance products primarily targeting low-income groups who lack adequate preparation for climate risks. It also mentioned that developing various additional services and innovative insurance products could create new market opportunities.
Kim Kyung-sun, a research fellow at the Korea Insurance Research Institute, said, "Microinsurance products should be developed as part of responding to the climate crisis and practicing inclusive finance," adding, "It may be possible to consider developing index insurance products that can provide coverage at affordable premiums." He continued, "Regarding climate risks, insurance companies can diversify revenue streams by offering innovative services throughout the entire health value chain, from customer health management to providing additional services," and added, "Cooperation with local governments and research institutions is also necessary."
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