A recent report from IQ Air, a Swiss air quality technology company, reveals alarming findings about global air quality. Released on March 13, 2025, the seventh annual World Air Quality Report shows that over 90% of countries are experiencing unsafe levels of fine particulates in the air, exceeding World Health Organization (WHO) guidelines. The data was collected from more than 40,000 monitoring stations across 138 countries, highlighting a serious global health concern.
The implications of this poor air quality extend beyond health. Insurers in health, life, and workers’ compensation sectors may face significant challenges as air pollution drives up healthcare costs. According to a report by Global Health Research and Policy, the World Bank estimated that air pollution cost the global economy around $8.1 trillion in 2019, equating to about 6.1% of GDP.
Glory Dolphin Hammes, CEO of IQAir’s North American division, noted that while the company does not track specific health insurance costs linked to air pollution, there is a clear connection between poor air quality and increased healthcare expenses. She emphasized that underrepresented groups often bear the brunt of these pollution risks, suggesting that many health costs associated with poor air quality may not yet be reflected in insurance claims.
In the United States, air pollution costs the economy over $790 billion annually, which is about 5% of GDP. Hammes pointed out that improving air quality could yield substantial benefits. The U.S. Environmental Protection Agency estimates that for every dollar spent on air quality improvements, there could be $30 to $90 in economic and health benefits. These benefits include reduced work hours due to illness, increased healthcare costs from conditions like asthma, and lost income from caregiving responsibilities.
The report also raises questions about how air quality might impact workers’ compensation claims. Gary McMullen, a workplace risk director at Aon, noted that while air pollution can lead to claims, the numbers remain low in Australia. He explained that workers could potentially file claims if they develop health issues related to significant air pollution exposure at their jobs.
McMullen identified three main scenarios where air quality poses a risk: industrial workers exposed to fumes, outdoor workers in polluted urban areas, and employees in poorly ventilated indoor spaces. Interestingly, recent data from Safework Australia showed a decline in respiratory disease claims over the past decade, suggesting a possible link between improved air quality and reduced health claims.
Australia stands out in the report, being one of only seven countries that met WHO air quality standards, alongside the Bahamas, Barbados, Estonia, Grenada, Iceland, and New Zealand. As the world grapples with the rising challenges of air pollution, the conversation around its impact on health and insurance is more critical than ever.