African Risk Capacity Ltd.’s Post

📌 AXA 𝗹𝗲𝗮𝗱𝗶𝗻𝗴 𝘁𝗵𝗲 𝗳𝗶𝗴𝗵𝘁 𝗮𝗴𝗮𝗶𝗻𝘀𝘁 𝗰𝗹𝗶𝗺𝗮𝘁𝗲 𝗿𝗶𝘀𝗸𝘀 𝗶𝗻 𝗔𝗳𝗿𝗶𝗰𝗮 🌱 AXA Climate is strengthening climate risk modelling in Madagascar with an eye to developing tailored climate insurance products that build resilience in vulnerable regions. 📆 𝗔𝘁 𝗔𝗙𝗜𝗦 𝟮𝟬𝟮𝟰, 𝗼𝘂𝗿 𝗿𝗼𝘂𝗻𝗱𝘁𝗮𝗯𝗹𝗲 "𝘛𝘩𝘦 𝘳𝘰𝘭𝘦 𝘰𝘧 𝘪𝘯𝘴𝘶𝘳𝘢𝘯𝘤𝘦 𝘪𝘯 𝘢 𝘤𝘭𝘪𝘮𝘢𝘵𝘦-𝘤𝘩𝘢𝘯𝘨𝘦𝘥 𝘧𝘶𝘵𝘶𝘳𝘦: 𝘍𝘳𝘰𝘮 𝘙𝘪𝘴𝘬 𝘵𝘰 𝘙𝘦𝘴𝘪𝘭𝘪𝘦𝘯𝘤𝘦" will bring together 30 stakeholders to discuss how the insurance sector can address growing climate threats and the critical role of open data sharing. Major insurers will be joining the AFIS Annual Summit in Casablanca, including SUNU GROUP SanlamAllianz GROUPE NSIA APA Insurance Limited 𝗙𝗲𝗮𝘁𝘂𝗿𝗶𝗻𝗴 𝗶𝗻𝘀𝗶𝗴𝗵𝘁𝘀 𝗳𝗿𝗼𝗺: 🔹 Mamadou DEME, Director of Insurance, Ministry of Finance and Budget, Republic of Senegal 🔹 Ibrahima DIOUF, Special Advisor to the President, member of the Executive Committee, Banque Ouest Africaine de Développement 🔗 Find out more about AXA Climate's strategy: https://bit.ly/4e7m8Cg #AfricanFinance #ClimateRisk #AXAClimate #Insurance #AFIS2024 #ResilientFinance #Innovation

At the South African Pavilion at COP29 Azerbaijan, I had the pleasure of providing a keynote presentation on how the UN Environment Programme is working with the global insurance industry and key stakeholders in building resilient communities and supporting a just transition to a net-zero and nature-positive economy. The session discussed the main findings of the upcoming report by the The African Climate Foundation and Krutham on how #climateriskinsurance can be scaled up to enhance resilience in Africa, with a focus on Kenya, Malawi and South Africa. In 2023, climate-related disasters in Africa led to USD 14.7 billion in economic losses, with insurance covering only one-fifth of the total. At the same time, annual funding meets only 11% of Africa’s adaptation needs. It was a wide-ranging discussion that highlighted various roles that the insurance industry can play in helping build resilient communities and economies as risk managers, insurers and investors. We discussed key factors to help make insurance solutions at the micro, meso and macro levels in Africa — from #smallholderfarmers and #MSMEs, to #cooperatives, #cities and #countries — accessible, affordable, scalable and sustainable. We also touched on the opportunity for insurers to use their investments to finance adaptation projects and climate-resilient infrastructure. Many thanks to Cecilia Schultz (Krutham) for sharing the key findings of the upcoming report and to Iva Detelinova (The African Climate Foundation) for seamlessly moderating a diverse panel. It was brilliant to hear the insightful and practical views of my fellow panellists: Amy Barnes (Marsh McLennan), Sinja Buri (Munich Climate Insurance Initiative), and Dagmawi Haileyesus Assefa (PULA).  Looking forward to the formal launch of the report in the coming weeks. United Nations Environment Programme Finance Initiative (UNEP FI) The Nairobi Declaration on Sustainable Insurance #SustainableInsurance #NetZeroInsurance #InsuranceForNaturePositive #InclusiveInsurance

As part of this article, I said“When disasters strike, governments often have to reallocate funds for urgent needs, but with insurance policies, they can respond without diverting funds from their original investment purposes. This ensures continuity in development projects and enhances investor confidence.” Take time to read of the work UNHCR Malawi is doing in Malawi.

In a continent as diverse and dynamic as #Africa, tackling the multifaceted challenges of climate change and natural disasters requires a unified approach. The recent IPCC report highlighted the insufficiency of current global financial flows for adaptation, particularly in developing regions like #Africa. This underscores the necessity for robust partnerships and collaborative efforts. This sentiment was articulated beautifully by Philip Lopokoiyit, Chairman of NDSI and CEO of ICEA LION Group, during his opening remarks from the Nairobi Declaration on Sustainable Insurance (NDSI) workshop at the AIO - African Insurance Organisation Annual Conference. We can leverage our collective expertise, resources, and networks through collaboration to build resilient systems that protect our communities. #NDSI is committed to fostering these partnerships, advocating for effective risk management practices, and ensuring that our strategies are inclusive and sustainable. As we continue to engage with stakeholders across various sectors, we remain focused on creating a resilient, #sustainable future for #Africa and its people. #Collaboration #DisasterManagement #AIO2024 #NDSI #Insurance #RiskManagement #NaturalDisasters #Sustainability

In October 2023 Egypt issued Africa’s first sustainable Panda Bond worth RMB 2.48bn (USD $478.7 million). We placed an insurance policy crowding in additional unfunded private capital behind the African Development Bank (AfDB)’s exposure. The deal met nine of the UN sustainable development goals. To read more about it and how collaboration between private and public sectors can mobilise additional capital to support these goals, click below to read our inaugural sustainable insurance report.

Take on more ‘green’ risk? Give us more state support’, say African insurance executives. These are some of the key take aways from the Continental Reinsurance 9th CEO Summit as executives discussed underwriting climate related investments in Africa🌍. ⏺ There is need for more state support to encourage insurers to take on additional "green" risks. ⏺ Due to existing challenges faced by insurers in Africa, such as being undercapitalized and dealing with substantial claims, government financial backing is crucial for promoting the underwriting of climate-related risks. Examples like the UK's lower premiums on electric vehicles, supported by government incentives were discussed. ⏺ In Africa, insurers face higher risks and premiums in green projects, necessitating tailored policies and financial backing to boost investment. For more information, you can access the detailed report here 👇 https://lnkd.in/diMGnhQy #Insuranceindustry #Africa #greenfinance #climateaction

At the AIO - African Insurance Organisation (AIO) Annual Conference, Zillah Malia, Senior Manager of Climate Finance at FSD Africa, highlighted a crucial aspect of the climate crisis. Her powerful statement underscores the urgent need for a unified response to climate change. The economic toll of climate-related disasters is profound, with some #African countries experiencing significant GDP losses annually. As the most vulnerable continent to these impacts, #Africa must proactively build resilience and adapt to changing climatic conditions. A collaborative approach involving both the private sector and government is essential. By pooling resources, sharing knowledge, and implementing innovative solutions.

The World Bank's new #ClimateAndDevelopment report for Senegal finds that the country needs to invest in the following areas to keep up its march towards middle-income status: 🚍Clean energy+sustainable transport like Bus Rapid Transport [BRT] 🌾Climate smart agriculture 🌪️Disaster risk management 💼Private sector enabling 💰Climate finance mobilization Without action, annual economic losses could reach 3–4% of GDP by 2030 and could undo years of income growth and erode human capital development achievements. Building climate resilience and leveraging the low-carbon economy by investing in people and the planet will protect over two million Senegalese & put the country on the path of a sustainable and prosperous future! https://lnkd.in/eUk26NwM #Senegal

Africa is at the forefront of the climate crisis and is uniquely positioned to lead on sustainable climate finance initiatives.

A new report reveals how one of Africa’s leading development banks is attempting to address the challenge of reducing its impact on nature and biodiversity. The report, titled “A case study on nature data” was commissioned by the African Natural Capital Alliance (ANCA) and co-published by the Development Bank of Southern Africa (DBSA) – a leading member of ANCA – and Oliver Wyman. The DBSA, inspired by the Taskforce on Nature-related Financial Disclosures (TNFD), is leading the way on how it can advance integrating nature and climate finance into its decision-making process. DBSA’s Head of ESG, siloshini naidoo emphasises the commitment to sustainable development in Africa, stating, "Our collaboration with ANCA and Oliver Wyman underlines our dedication to promoting long-term prosperity for the continent through environmentally conscious investments." One of the significant challenges highlighted in the report is how to assess the environmental impact of large-scale, complex linear infrastructure and scattered development projects. To address this, DBSA is developing a bespoke solution to classify projects based on their impact on natural habitats. For more insights, read the full report "A Case Study on Nature Data" https://lnkd.in/dr85feBF and join the movement towards responsible and sustainable banking practices in Africa. Working together for a greener and more prosperous Africa! #SustainableFinance #NatureConservation #FinancialInstitutions #AfricaDevelopment #BiodiversityAwareness.