Africa’s insurance industry has been challenged to play a proactive role in addressing the climate change agenda.

Speaking at the Africa Insurance Organization Annual Conference, General Assembly in Nairobi, director School of Pension and Retirement Studies Edward Odundo, underscored the need for climate change provisions in Environmental, Social and Governance, ESG, risk assessment.

“The risks posed by the rising global temperatures cut across all sectors including the insurance industry,”Odundo said.

He added that the increasing frequency and intensity of disasters relating to flooding, drought and other climate change-induced disasters has a direct impact on the insurers business.

He urged the insurance industry to be at the forefront in pushing for sustainable business practices across all sectors.

“Players in the industry should proactively assess the climate risk element associated with their business decisions. You should invest in sound policies that are aligned to the walk towards achieving net zero temperature commitment,” he said.

This, he said, will be achieved through adopting rigorous investment screening procedures for climate specific and ESG risks.

Insurers have been urged to develop products targeting the emerging international climate finance flows, demand for carbon credits and the new green economy opportunities.

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