Ebere Nwoji
Insurance and reinsurance operators across Africa have been challenged on the need to promote environmental sustainability in the continent in line with the UN’s principle of sustainable insurance initiative.
The insurers were given the challenge at the on going Africa Insurance Organisation’s (AIO) conference holding in Nairobi, Kenya.
The regional insurers were informed that the 2012 UN’s principles of sustainable insurance were dedicated to helping insurers manage sustainability risk while seizing opportunities to move towards a more climate resilient economy.
The Chief Administrative Secretary, The National Treasury and Planning Kenya, Eric Simiyu Wafukho who challenge the regional insurers at the conference noted that the theme of the conference which is, “Insurance and Climate Change: Harnessing the Opportunities for Growth in Africa,”was apt in addressing the current global challenges affecting the continent.
“The insurance industry has a critical role to play in helping companies and nations manage, measure and reduce the impact of climate change. We therefore cannot continue with business as usual in the face of increasing frequency and scale of risks caused by climate change.We must adjust our business models to better support environmental , social and governance (ESG) issues, Wafukho stated.
He highlighted the UN’s four principles for sustainable insurance as including ESG issues that are relevant to insurance business into decision making process, working with clients and business partners to raise awareness of ESG issues, manage risk and develop solution.
In his remarks, the AIO President Mr Tope Smart, said the AIO, was established in 1972 with the objectives of developing a healthy insurance and reinsurance industry and the promotion of inter-African co-operation.
He said the African insurance industry remained one of the least penetrated in the world, with an average of around 2 percent which is low compared to the global average of around 7 percent.
“Our industry’s growth keeps getting slowed down by our inability to build substantial capital reserves due to poor saving culture and Premium flight. There is still heavy reliance on foreign expertise. Our industry is still plagued by poor public image and lack of trust. These and many more are the challenges we face today, and we need to address them if we intend to secure a better future for our industry, “Smart stated.
