Building Economic Resilience to the Health Impacts of Climate Change 2025

Water-related disease and illnessMental health disorders Zoonoses and infectious disease exposure Injury and mortality Vector-borne diseases Non-communicable diseasesFood-borne diseases Malnutrition Heat-related illness Respiratory illnessInsurance is a critical mechanism for enabling access to healthcare worldwide both directly (through health insurance provision) and indirectly (through life and casualty coverage). Health insurance spreads medical costs, while life and casualty insurance help cover the costs associated with poor health for sufferers and their families. Climate change is putting significant pressure on this mechanism as the risk of ill- health rises. Health threats can be divided into two categories, each with different impacts:1. Acute climate-driven health events: Such instances are rising in frequency and severity as extreme weather and disease outbreaks heighten the risk of short-term illness, injury and mortality. 2. Chronic climate-driven health shifts: Core health inputs such as food, water, air and even sleep are degrading, increasing the long-term risk of illness and mortality for the wider population. 6.2 Health impacts Acute and chronic climate-driven health risks FIGURE 6 These risks are most applicable to individuals disproportionately exposed to the determinants of climate-health risks. Unlike the other focus sectors’ workforces, the workforce for the insurance sector is not exposed to a heightened degree of climate risk as employment tends to be more stable, concentrated in developed regions and office-based. The communities most at risk from climate- driven health impacts are the least likely to be insured. In low-income countries, only 8% of people have health insurance, compared to about 53% in upper-middle-income countries.76 Underinsurance and gaps in coverage, however, are also present in high-income countries, where many individuals still face high out-of-pocket costs or lack adequate protection. For the under- or uninsured, the cost of climate-induced illnesses or disasters can be financially crippling.In exposed regions, insurers are responding to climate risks by raising premiums, tightening coverage or even withdrawing from the market. This is creating “insurance deserts” – communities that cannot obtain affordable coverage.77 This is a dynamic already seen in property insurance for disaster-prone areas and is likely to emerge for health and life insurance in climate-exposed regions. Growing insurance costs and coverage gaps are emerging as their own mental health challenge – in fact, 66% of US adults cite the cost of health insurance as a significant source of stress.78 These trends are deepening health inequalities both across and within countries. Those with the means can adapt, while vulnerable populations remain unprotected. Insurers committed to addressing climate-health challenges can act to close these gaps.8% of people have health insurance in low- income countries, compared to about 53% in upper-middle- income countries. Building Economic Resilience to the Health Impacts of Climate Change 36