Nations across the world have committed to taking urgent mitigating measures to slow down the imminent catastrophes from floods, heat waves, rising water levels and forceful destructive winds.
Kenya, like many African nations, bears the brunt of climate change, with increased occurrences of floods wreaking havoc on communities, agriculture, and infrastructure in various regions while drought has been blamed for multiple livestock deaths especially in Northern Kenya.
Last July was the second hottest month on record for the globe, with scientists marking 2023 as the hottest on record, which ushered in the eventual return of the El Nino weather phenomenon.
As the world discusses themes such as technology and innovation, inclusion, frontline communities, and finance at the conference, it is imperative to highlight the vital role that insurance can play in building climate resilience.
Insurance is traditionally perceived as a financial safety net for unforeseen events. In the context of climate change, it becomes a powerful tool for risk mitigation and adaptation.
To demonstrate the effects of climate change, the recent occurrence of floods which are becoming more prevalent in Kenya have resulted in substantial economic losses, displacements, loss of life and disruptions to livelihoods. Taking action to prevent the adverse effects of climate change is critical especially in developing economies which face difficulty responding and recovering from the aftermath.
The discussions at the conference underscore the importance of Technology & Innovation. In the realm of insurance, technological advancements are revolutionizing the way risks are assessed, policies are designed, and claims are processed. Satellite imagery, data analytics, and artificial intelligence can contribute to more accurate risk modeling, enabling underwriters such as CIC Group to provide coverage that is not only comprehensive but also affordable.
Inclusion is another key theme at the conference, emphasizing the importance of considering the needs of vulnerable populations. Communities at the frontline of climate change are often the most affected and the conference underscores the importance of empowering these communities to proactively manage and mitigate climate risks.
Micro-insurance products emerge as a tool for inclusive development, ensuring that even the most vulnerable have access to affordable coverage while empowering these communities to recover in the aftermath of climate-induced disasters.
As the conference delves into financial solutions for climate resilience, insurance also stands out as a critical component. Governments, businesses, and individuals must pool resources through insurance mechanisms to create a financial safety net that is robust in the face of climate-related risks ensuring that the financial burden of recovery is distributed more equitably.
As the world converges in Dubai to address the challenges posed by climate change, the role of insurance cannot be overstated. In Kenya, where unpredictable weather patterns are an ever-present threat, insurance emerges as a crucial tool for mitigating the impact of climate-induced disasters both in the short and long term.
By leveraging technology, promoting inclusivity, and integrating financial mechanisms, insurance can contribute significantly to building resilience and fostering sustainable development in the face of a changing climate. The decisions made at the conference will shape the global response to climate change, and integrating insurance into these strategies will be key to creating a more resilient and sustainable future for all.
The writer is Group Head of Strategy and Investor Relations at CIC Group.
DISCLAIMER! Opinions expressed in this article do not necessarily represent those of the Corporation.
