Heatstroke insurance: a successful Japanese innovation

In August 2022, Japan witnessed record temperatures. Consequently, the number of hospital admissions for heatstroke skyrocketed.

In an effort to attract potential customers, Japan's five largest insurers jumped at the chance to launch heatstroke insurance policies. These provide coverage for health care expenses in case of hospitalization due to extreme heat.

The policies can be underwritten on a yearly basis with monthly premiums of 220 JPY (1.5 USD). However, the "bestseller" is a one-day policy that costs 100 JPY (0.7 USD) per day. The policy can be underwritten via a mobile application before 9 am and is activated starting at 10 am to cover the insured throughout the day.