African insurers and the United Nation’s are engaging on the need to embrace sustainable development in the Continent that will enable build a resilient, inclusive and sustainable communities for economic prosperity.
They believe that insurers have a role to play by ensuring that risks that will be undertaken in the future are not allowed to deteriorate as a result of environmental and climate change by doing nothing, while efforts must also be geared towards closing the protection gap amongst citizens to enhance standard of living.
At a stakeholders meeting hosted in Lagos by Continental Re Plc under the auspices of the United Nations Environment’s Principles for Sustainable Insurance (PSI), the largest collaborative initiative between the UN and the insurance industry, experts canvassed the need for cooperation among operators in the industry, regulators and the government.
The Annual PSI African Market Event, now second in the series provided the platform for stakeholders to share experiences and ideas on how to support the growth, profitability, responsibility, resilience and sustainability of the African insurance industry, and to drive sustainable development on the continent.
Areas of focus includes – Closing the Risk Protection Gap; Resilient Cities and Sustainable Food Systems and Agriculture.
Femi Oyetunji, group managing director/ CEO of Continental Re plc, the first African reinsurer to sign the UN’s PSI principles, said: “As risk managers, insurers and investors, the insurance industry has an important role to play in making communities and economies inclusive, resilient and sustainable. The recent devastation wrought by Cyclone Idai, and now Cyclone Kenneth, is yet another wake-up call for the urgent need for action and collaboration to better manage risk and support sustainable development.”
He said that Continental Re joined the United Nations Principle of Sustainable Insurance in 2012 because at Continental we believe that it is in our interest to protect the environment we live and operate in.
“So as insurers and reinsurers, it is our responsibility to ensure that the risks we undertake are not deteriorating, so we must make sure we mitigate the impact of the global warning because we will be the one to bear the brunt when claims come.”
It could get to a point where we will no longer charge appropriate rate if things deteriorate beyond a reasonable level, and in the long run we may not be able to make profit for the shareholders again, Oyetunji said.
“For us in Nigeria, we have not approached this with sense of urgency because we are still thinking there is enough time. But with the effort we have made in bringing these experts to Nigeria who have enabled us realise that we are in a perilous time, I believe it is a step in the right direction.
“We need to work with the government, we need to work with the regulator and other operators in the market, this being an advocacy step which I believe will start to raise the consciousness and embed in us the sense of sustainable development. I also see this leading to forming a sustainable movement in Nigeria, Oyetunji said.
Oyetunji added: “Whether it’s the cyclones in Mozambique, the droughts and wildfires in South Africa, Ebola and malaria across the continent, or the floods in Lagos, there is no question that we must urgently meet the sustainability challenge.
“We are proud to host the 2nd PSI African Market Event in Lagos and look forward to working with our peers in the African insurance industry and the UN to move from awareness to action, and deliver positive impact.”
Butch Bacani, who leads the PSI Initiative at UN Environment, said: “The world is facing an increasing number of sustainability challenges, from climate change, environmental degradation, and pollution; to social inequality, financial exclusion and major health risks. This is why world leaders have committed to delivering prosperity for all on a healthy planet through global goals such as the UN Sustainable Development Goals and the Paris Agreement on Climate Change. In this context, we are delighted that the African insurance industry is working together and demonstrating the leadership and ambition needed to drive sustainable development.”
John Melville, chief underwriting officer of Santam Insurance, said: “Sustainability issues such as climate change and environmental degradation are leading to diverse, interconnected and complex risks, but also present new opportunities for collaborative action to mitigate risk and improve physical and financial resilience. This is why it’s crucial that African insurance leaders, the UN, and key stakeholders are gathering in Lagos to find solutions to tackling the continent’s most pressing sustainability challenges.”
Endorsed by the UN Secretary-General and insurance industry CEOs, the Principles for Sustainable Insurance (PSI) serve as a global framework for the insurance industry to address environmental, social and governance risks and opportunities—and a global initiative to strengthen the insurance industry’s contribution as risk managers, insurers and investors to building resilient, inclusive and sustainable communities and economies. Developed by UN Environment’s Finance Initiative, the PSI was launched at the 2012 UN Conference on Sustainable Development, and is the largest collaborative initiative between the United Nations and the insurance industry.
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