🫶 Community-Level Resilience Insurance & Micro-Finance Instruments

• In Ahmedabad, a pioneering parametric heat insurance programme has delivered rapid payouts to tens of thousands of women working in the informal economy such as salt-pan workers, street vendors and construction labourers. When temperatures reach pre-defined thresholds, the policy triggers automatic payments directly into beneficiaries’ accounts. No proof of losses is required, enabling families to cover essential costs including medical care, food and school fees during severe heat events.

This model shows how micro-insurance can extend financial protection to workers who are often excluded from traditional insurance schemes and who face disproportionate exposure to climate impacts.

Extreme heat and other climate shocks place significant financial strain on workers and households with limited savings or formal protections. Micro-insurance provides predictable, timely support that strengthens both financial and health resilience. For cities, these instruments help reduce the wider social and economic impact of climate shocks and support a more stable path to recovery for exposed communities.