How Climate Change Impacts Global Healthcare
From prolonged high temperatures and air pollution to increased extreme weather events, the impacts of climate change are affecting the health and welfare of people across the globe. That’s not news to international NGOs. Many tackle those challenges head-on as part of their mission, while others simply deal with the impacts as they deploy workers across the globe. The good news is this experience puts INGOs in an excellent position to cope with what’s to come.
Still, there are several considerations INGOs should be aware of when sending travelers abroad to countries increasingly affected by climate change—and when shopping for the coverage they need to keep employees safe and healthy no matter where they are. Let’s dive in!
How climate change is already impacting global health
According to Boston Consulting Group (BCG), there were 404 natural catastrophic events in 2022, representing a 22% increase over the yearly average from 2001 through 2020. While 2022 was the most recent year with complete data available, “Research conducted by the US government agencies NASA and NOAA confirms that the trends continue: 2023 broke many global warming records.”
BCG reports, “The Lancet Countdown estimates that extreme heat resulted in a loss of 490 billion potential labor hours globally in 2022, an increase of 42% over the annual average from 1991 to 2000.” Meanwhile, in the U.S., the CDC’s Environmental Public Health tracking website reported an 88% increase in heat-related illnesses and hospitalizations throughout California, Arizona, and Nevada in July 2023 compared to the average from 2018-2022.
In addition to heat-related illness, increasing global temperatures have ancillary impacts. As PWC reports, “elevated temperatures facilitate the formation of ground-level ozone and other pollutants, exacerbating respiratory ailments like asthma and chronic obstructive pulmonary disease (COPD).” Additionally, a study found exposure to fine-particulate matter increases the risk of cardiovascular mortality by 8-18% for adults over 30.
Add natural disasters driven by the changing climate into the mix, and INGOs have a lot to consider when designing and implementing health coverage as well as Assistance and Security plans. The good news — if you can call it that — is that INGOs have been dealing with many of these challenges for years and are, therefore, ahead of the curve.
Tips for INGOs coping with climate change
Because INGOs often operate in countries where diseases exacerbated by climate change or natural disasters are always a looming threat, they tend to be better prepared for worst-case scenarios than the average company or traveler. For instance, many of them already include coverage for immunizations or other drugs to prevent infectious diseases endemic to places they travel, such as Yellow Fever. Food- and water-borne illnesses are already a part of their daily considerations. INGOs also have Assistance and Security coverage to ensure employees can be removed from dangerous situations — like natural disasters — when they occur.
Many of the worst effects of climate change are still far off, so these considerations are not impacting premiums. However, at Allegiant Global Partners, we pride ourselves on keeping our eyes trained on the future and asking questions so we can intervene quickly when issues arise. With that in mind, we have a few tips for our INGO clients to ensure they stay ahead of other industries when it comes to preparing for climate change.
Pre-screening for fitness to travel is more important than ever
It has always been essential to screen employees for their fitness to travel, and we often recommend our clients include this feature in their Assistance coverage. In the past, this kind of screening may have focused on mental fitness to travel for prolonged periods and the ability to cope with isolation from friends and family. Increasingly, it will be essential to consider travelers’ health. For instance, if an employee suffers from asthma and is considering traveling to India, where heat and air quality are concerns, it’s imperative to inform them of the potential risks and allow them to make an informed decision about whether they are the best fit for the job. Assignment failure is an often overlooked possibility, and if an employee needs to leave unexpectedly, it can set back, or even derail, a mission.
Someday, other companies will catch up — beware
While INGOs may be at the forefront of health coverage that makes an organization more resilient to climate-related issues, other companies will inevitably catch on. When coverage becomes more commonplace, there can be unexpected ramifications. We saw this happen with mental health care. INGOs have long been concerned with providing their employees with mental health services because they often work and live in stressful environments. Over the past five years, more companies have realized the importance of providing mental health care, and, as a result, it’s harder to get an appointment with a provider. It’s essential to keep an eye on the health insurance industry as a whole and see how trends in coverage are changing and may impact INGO employees.
Hiring locals may be a good climate change strategy
We see more INGOs looking for locals to fill positions abroad rather than sending expats or third-country nationals. Hiring locals already acclimated to dangers like extreme heat or local air quality somewhat diminishes the risks associated with these conditions. This does not mean your organization will not provide them with the same coverage — benefit equity is important — but it does mean they may be more innately resilient and better qualified to deal with the coming challenges of climate change.
If you’re thinking about cutting coverage, don’t!
Coverages that may help companies cope with climate change may not be used frequently. From evacuation assistance to treatment for infectious diseases, these rarely used coverages may be first on the chopping block when an organization is looking to save money — but in our opinion, that is the wrong move. Once you lose coverage, it’s hard to get it back. The reality is that these types of coverage cost so little that they will ultimately save your organization money if a claim is made. The cost of just one evacuation can throw a budget into turmoil if you do not have the right coverage in place. Meanwhile, more frequent climate-related disasters increase the likelihood of an evacuation. So, if you want to cut healthcare costs, you must work with a skilled advisor to understand how any changes could impact your organization. (Pro Tip: Always look at the fine print. Evacuation coverage often requires “civil unrest,” which may or may not result from some climate disasters.)
Considering climate as part of your Duty of Care
Our clients’ Duty of Care is always on our minds, and increasingly, we suggest they consider the impacts of climate change as a critical part of that equation. Historically, we advise clients to consider who is traveling, where they send employees, and what the community standard is in the industry. Climate considerations will play a part in thinking about who is traveling and where they are going. Right now, you may not make changes based on the looming climate crisis, but getting in the habit of thinking about the potential problems posed by climate change will help keep your organization ahead of the curve.