Future of Africa’s insurance is in sustainability
The insurance industry must respond proactively to the challenges posed by climate change.
Sustainability has transitioned from a buzzword to a strategic necessity for businesses worldwide. For Africa’s insurance sector, embracing sustainability is critical for survival and relevance. As climate change intensifies, devastating communities and economies, the role of African insurers in championing sustainability has never been more vital.
Incorporating environmental, social, and governance (ESG) principles is not just about meeting regulatory requirements; it is a moral imperative and a pathway to building long-term resilience and growth.
The insurance industry must respond proactively to the challenges posed by climate change. The continent faces disproportionate impacts, including economic vulnerabilities, environmental degradation and social instability.
These challenges present insurers with a unique opportunity to drive resilience by embedding ESG principles into their core operations. From underwriting policies to developing innovative products, African insurers have the potential to reshape the industry while contributing to a healthier planet.
From April 2-4,, the Nairobi Declaration on Sustainable Insurance (NDSI) will host the inaugural Africa Sustainable Insurance Summit in Accra, Ghana. This event provides a platform to amplify the importance of sustainability within the insurance sector.
The NDSI’s vision is to see Africa prosper sustainably, with a resilient insurance sector driving this change. What began as a commitment by African insurance leaders to support the UN Sustainable Development Goals has grown into a transformative movement. Today, over 200 signatories in 36 countries are aligning their strategies with sustainability principles.
The impacts of climate change are undeniably urgent. Insurers must adapt quickly to this evolving landscape to mitigate risks and support sustainable development. To tackle the multifaceted challenges associated with ESG, insurers need to push boundaries with innovation. For instance, insurance products tailored to support renewable energy projects are game-changers. These solutions mitigate risks in early-stage projects, unlock investment, and promote green energy adoption.
Progress in sustainability cannot be achieved in isolation; collaboration is key. NDSI provides a platform to unite players in the insurance sector under a shared vision. By fostering partnerships, driving capacity-building initiatives, and creating learning opportunities, the declaration accelerates the adoption of sustainability principles in the continent.
The summit will bring together regulators, insurers, investors and other stakeholders to engage in impactful conversations. These interactions are instrumental in building the frameworks necessary to embed ESG principles in the insurance ecosystem.
The African insurance industry stands at a critical juncture. By fostering innovation, embracing collaboration and building resilience, insurers have the power to transform not just their industry but the continent.
The writer is the chairperson of the Nairobi Declaration on Sustainable Insurance & ICEA LION Group CEO.