'Why African insurers must adopt sustainable growth'

• Published date: 16 January 2023
• Publication title: Nigeria - The Nation

Insurance regulators and operators in Africa have been urged to adopt Environmental-Social-Governance (ESG) to drive sustainable growth of the market.

The Chief Executive Officer, ICEA Lion Holdings, Mr. Philip Lopokoiyit, made the call at the Insurance Directors' Conference at the College of Insurance and Financial Management (CIFM) in Lagos, with the theme: 'Transforming the Insurance Industry through ESG Principles: Directors' Roles'.

Lopokoiyit said the key substance of the Nairobi Declaration on Sustainable Insurance was a commitment by the industry leaders to support the achievement of the UN Sustainable Development Goals (SDGs).

He emphasised that the declaration was an Africa-focused initiative designed to encourage and support the market players.

He added that it is a tool to develop ESG principles and solutions within their businesses as insurance players become change agents.

The ICEA Lion Group chief said the declaration was important because while the UN SDGs are gaining momentum, progress to meet these SDGs from a financial services perspective was not yet at the speed or scale required.

Lopokoiyit said: 'The ICEA Lion Group went to COP 27 in Sharm El-Sheikh-Egypt 2022 as a founding signatory to the Nairobi Declaration on Sustainable Insurance (NDSI). It co-hosted a Climate Adaptation event with UNFCCC, FSD Africa and Namib Re as representatives of the NDSI on November 9, 2022.

'At this event, the signatories announced the launch of the Africa Climate Risk Facility. They made a commitment to insure cumulatively more than 1.4 billion people by 2030 as well as provide $14 billion insurance capacity for flood, drought and cyclones in Africa. The $900 million multi-donor-trust fund facility, which when fully set up and resources mobilised, will be available for NDSI signatories. The facility will drive premium subsidies, product development and capacity building.

'Other significant milestones for the continent at COP 27 included the launch of the Africa Carbon...