Insurance firms as major stakeholders in cleaner air

Air quality-linked illnesses now constitute 9% of all hospitalisation claims in India, up from 6.4% in 2022, according to the article.

Delhi, with 2.5% of India's population, accounts for 38% of hospitalisation claims attributable to poor air quality.

Insurers pay an estimated ₹3,000 crore annually in air-pollution-related hospitalisation claims in Delhi, a figure that exceeds public expenditure on air quality improvement.

The insurance industry has discussed with the Insurance Regulatory and Development Authority (IRDAI) a 10-15% premium loading for Delhi residents to account for pollution-related risks.

The Green Credit Programme (GCP), launched in 2023, is proposed as a potential architecture for an air-quality improvement market, where insurers could invest via CSR funds.