The South Korean government plans to launch a climate insurance cover for citizens in collaboration with the country's insurance industry in 2026.
The climate insurance cover will provide compensation for losses caused by climate change, including abnormal weather events. A draft of the climate insurance product development plan revealed that the government and the industry are developing an index-based climate insurance that guarantees income for outdoor workers unable to work due to extreme heat.
Compensation would be provided based on objective indicators such as heatwave warnings, and the goal is to support vulnerable groups such as day labourers who are directly impacted by extreme weather conditions.
This initiative comes after the ministry of environment and the general insurance association of Korea signed a memorandum of understanding in April to introduce and promote climate insurance.
According to the Korea disease control and prevention agency, a total of 633 people in the country were affected by heat related health issues between 15 June and 3 July, with five deaths reported.