[Anchor]

A "climate insurance" system to compensate for damages caused by the climate crisis is being pursued at the government level.

Reporter Ha Jeongyeon has exclusively covered the pilot project plan set to launch next year for 13,000 workers.

[Reporter]

[Citizen (on the 7th): It feels like it has been the hottest it's been in recent times.]

Amid scorching heatwaves that have become a daily routine, outdoor daily laborers worry not only about heat-related illnesses, but also face threats to their livelihoods due to income drops when work is frequently suspended under heatwave warnings.

[Ha Geun-ju / Construction worker (on the 12th): It is getting hotter by the day, and most people just endure it and work. When we can't work, it directly impacts our livelihoods.]

This is a parliamentary reporting document titled "Current Status of Climate Insurance Promotion" from the Ministry of Climate, Energy and Environment obtained by SBS.

The government plans to invest 5 billion won next year to pursue a climate insurance pilot project.

The beneficiaries will be about 13,000 people, which accounts for 7% of public construction workers nationwide.

When afternoon work is suspended due to morning heatwave warnings, workers would receive about 80,000 won in climate insurance payouts, which is roughly half of the average daily wage. The benefits can be extended for up to 14 days.

A distinctive feature is that it adopts an "index-based insurance" model, which automatically pays out a pre-determined amount of insurance money regardless of the scale of damage, based on changes in objective indicators such as weather.

Payouts take less time compared to general insurance policies that compensate after individual damage investigations. However, since the financial burden on the insurance could increase, the final application method is expected to be decided after comparative studies with general insurance.

In the National Assembly, a legislative bill aimed at strengthening climate resilience and public safety to prepare for damages from the climate crisis passed the standing committee yesterday (the 13th).

The bill includes provisions stating that the government should endeavor to develop and revitalize climate insurance to prepare for climate disasters and damages, and to ensure prompt livelihood stability.

[Kim So-hee / People Power Party lawmaker (National Assembly Environment and Labor Committee plenary session, on the 11th): Experiencing the heatwaves this year, I think many people have deeply felt the need for adaptation measures against the climate crisis, and actively developing such aspects into insurance products is also the role of the government.]

Climate insurance is currently operated in places like Jeju Island using insurance company funds and provincial government budgets.

(Photo courtesy of Oh Young-chun | Video by Park Chun-bae | Graphics by Seo Hyun-jung)