Africa is particularly vulnerable to climate risk. The continent’s exposure to drought, flooding, excessive heat, and tropical cyclones means that 30 of the world’s 40 most climate-vulnerable nations are in sub-Saharan Africa.
Despite the enormity of the task on a continent with non-life insurance penetration of only 1.8 per cent . Africa’s fledgling insurance sector has the tools, insight and ability to assist businesses and governments make the right decisions about what climate resilience efforts to pursue.
In short, risk modelling provides Africa’s insurance industry with the tools to understand, assess and address the inevitable long-term effects of global warming. Leveraging data and knowledge models to respond correctly is the first step in managing the impact of climate risk in Africa. Insurers have long used catastrophe models to simulate these kinds of effects and assess the risk.
In short, insurers can make a significant contribution to lowering carbon emissions in Africa in both their roles as long-term capital asset managers and underwriters. By offering investors de-risking options, insurers serve as underwriters and play a crucial part in enabling the flow of funds to mitigation initiatives.
Supporting our customers to reduce climate risks and minimise impact as well as adequately compensating those who have suffered losses