California has experienced seven severe heat waves over the past decade, resulting in an estimated $7.7 billion in insured and uninsured losses, according to a report from the state’s insurance regulator.

The California Department of Insurance said the number of people affected by these heat events is about 12 times higher than the state’s last seven wildfires, which affected about 3 million Californians.

The report highlighted significant health and safety impacts, including nearly 460 deaths and approximately 344 adverse birth outcomes, such as low birth weight and preterm birth. Heat events also caused more than 5,000 hospitalizations, 10,600 emergency room visits, and 138,000 outpatient visits.

Less than 30% of patients admitted to the hospital and went to the emergency room due to heat had private insurance, with Medicare and Medi-Cal covering 60% to 79% of these patients.

While some costs associated with extreme heat can be covered by health insurance, workers’ compensation, and crop insurance, the Insurance Administration has identified significant gaps in traditional coverage for heat-related losses.

Read more: California Insurance Company Finds ‘Unique Solution’ to Avoid Paying Extra Coverage Costs

“Most of these costs are not covered by insurance, so small businesses and working families are most at risk,” said Caitlin Rudder, director of the California Environmental Defense Fund. “California must focus on solutions to reduce heat stress in our communities, such as expanding urban tree canopies and accessing green space.”

The report also included several recommendations from the California Department of Insurance, including developing heat-related business interruption products and policies that cover damage to infrastructure and agriculture.

The report also recommended additional incentives through federal agricultural insurance programs for policyholders who implement heat-tolerance measures. Private crop insurers, which cover a small number of specialty crops in the state, should also incentivize risk mitigation efforts.

What do you think of this story? Feel free to share your comments below.