INSURANCE operators have been called upon to adopt innovative strategies to cope with the increasing incidence of natural disasters across Africa.
The call was made by the Prime Minister of Namibia, Kuukongelwa-Amadhila, at the ongoing 50th Conference and Annual General Assembly of the African Insurance Organisation (AIO) in Windhoek, Namibia.
Kuukongelwa-Amadhila highlighted the critical role of local insurance institutions in mitigating the impacts of climate-related catastrophes.
The Prime Minister stressed the importance of building the capacity of local insurance markets to handle risks internally rather than relying excessively on foreign insurance placements.
She advocated the development and import of specialised insurance coverage to enhance resilience against natural calamities.
The Prime Minister stated that “The local insurance industry and the wider African industry must embrace solutions to address instances of natural catastrophes.”
She spoke about the severe drought currently affecting Namibia and other SADC countries, which has exacerbated food insecurity, and said that the situation prompted the Namibian government to declare a state of emergency.
Kuukongelwa-Amadhila called for robust partnerships among local insurers and international institutions to support the realisation of the African Union’s Agenda 2063.
The conference, with the theme, ‘Coping with Rising Natural Catastrophes Across Africa,’ provides a platform for African insurance companies and stakeholders to share ideas and craft strategies to secure the well-being of people amidst these disasters.
The Prime Minister noted that climate change has significantly increased Africa’s vulnerability to various natural disasters, including floods, droughts, hurricanes and wildfires.
“These events not only threaten lives and livelihoods but also undermine economic progress and exacerbate poverty and inequality,” she said.
She stressed the essential role of insurance institutions in risk management, promoting sustainable investment and mobilising savings for market development.
Kuukongelwa-Amadhila reiterated the need for the insurance industry to ensure wide coverage, innovate new products and leverage technology to meet the evolving needs of customers.
“It is important to spread risks across the border with players locally and abroad,” she said.
The Prime Minister added that local institutions should develop the capacity to minimise external placements and guarantee the growth of the local insurance industry.
She lauded NamibRe for its support of Namibian insurance companies and stressed the importance of a supportive regulatory environment to ensure market conduct, industry growth and sustainability.
The Prime Minister called on the industry to prioritise financial inclusion, ethical business practices, and the use of technological advancements to enhance service delivery.
The AIO conference coincides with the adoption of the African Continental Free Trade Area (AfCFTA) by AU member states, which aims to boost intra-African trade and competitiveness and Kuukongelwa-Amadhila expressed confidence that the AIO could play a collaborative role in providing affordable trade insurance to mitigate risks and encourage African entities to trade under the AfCFTA.
The Prime Minister stressed the urgent need for insurance solutions to support affected individuals and businesses as Namibia faces the challenges of an El Niño-induced drought.
She said, “Strong insurance entities are essential for enhancing efficient institutions in the economy, offering responsive solutions, and ensuring financial stability.”
and then