Focus on climate risks insurance ahead of Nairobi event
Insurance industry players are expected to back moves to force companies, including underwriters, to disclose their exposure to climate-related risks ahead of a continental forum that will seek to fix concerns brought by climate change shocks.
African Insurance Organisation (AIO) Conference and Annual General Assembly will be held in Nairobi next month, with the five-day event which kicks off on June 25, anticipated to bring to sharp focus the impact companies are having on the climate and environment.
A statement from the Association of Kenya Insurers (AKI) disclosed that deliberations at the conference will focus on insurance and climate change in Africa.
“Some of the key sessions will tackle climate risk financing, implementing Environmental Social and Governance (ESG) standards for insurers, technology and data-driven insurance solutions, among others,” it said.
Climate risk insurance is a type of indemnity designed to lessen the financial and other risks associated with climate change such as extreme weather like floods and drought leading to an increase in the number and severity of insurance claims.
Pension plans
Hosea Kili, County Pension Fund (CPF) and the Local Authorities Pensions Trust (LAPTRUST) chief executive said the insurance and pensions sector can play an important role in mitigating climate-change risks through their investments, products and services.
He warned that uncertainty over the path of global warming also poses profound risks for the country’s pension plans with many providers today struggling to steer the transition to a lower-carbon future.
“Global warming is a reality we cannot run away from because concerted efforts from players and regulators can’t be overemphasised,” said Kili.
As a result, he wants Retirement Benefits Authority to work with industry stakeholders to promote incentives that will allow pension funds to establish robust internal expertise on climate and other ESG-related proposals.
