Published in :
Today in Africa, the insurance penetration rate is estimated at only 3%. And among the increasingly important risk factors: the consequences of climate change. How do insurers deal with the phenomenon and what solutions do they offer?
” Increasingly extreme weather events that have doubled the amount of damage in the last ten years. “, emphasizes Ayouba Seydou. He is the group director of Olea Insurance Solutions Africa, a pan-African broker. ” In fact, the biggest risk today is climate risk. Above all, we are seeing more and more so-called natural disasters: floods, droughts, more and more frequent phenomena. Climate change affects farmers, but not only. It is urgent to find a solution. »
For millions of farmers increasingly affected by the effects of climate change, insurance is essential, but today few insurance products are suitable for this type of public. ” In fact, we have the whole problem of correctly sizing products in relation to purchasing power, explains Emmanuel Brulé, CEO of Sanlam Pan-African Insurance, the first pan-African insurer. Many industrial groups or large companies are insured for all their needs. And for individuals or small self-entrepreneurs, we see the gradual emergence of solutions for what is called microinsurance. And there, insurance still has work to do. To find very simple and cheap products. »
” Contribute through innovation, distribution »
Among the avenues explored, insurance through mobile money: ” We try to contribute through innovation and distribution. We have entered into a strategic alliance with MTN, which should help us to more easily reach all the populations that still do not have this type of protection. »
In this sector, some regions are more advanced. ” Eastern countries and South Africa are much more developed in this type of solutions because they have cooperatives with insurance coverage systems that are or are subsidized by the government with insurance premiums that are not very expensive. Says Ayouba Seydou.
Beyond the coverage of a farm, the insurance can allow reimbursement in case of poor harvest of inputs, fertilizers, seeds.