Insurance and pensions regulator, the Insurance and Pensions Commission (Ipec) say there is need for innovative solutions to combat the escalating risks posed by climate change. Speaking during a recent workshop titled “Climate Resilience Through Sustainable Insurance,” organized by Commission in partnership with Financial Sector Deepening Africa in Harare, Commissioner Grace Muradzikwa said highlighted the pivotal role of insurance in climate related disasters.
“In the face of increasing climate-related risks and challenges, it is crucial for us to explore innovative solutions that can help mitigate the impact of these risks and build resilience in our country. As you know, insurance plays a critical role in providing financial protection against climate-related disasters.
“However, traditional insurance models may not be sufficient to address the scale and complexity of these risks. That is why it is essential for us to adopt sustainable insurance practices that not only provide coverage but also promote resilience and adaptation to climate change,” said Muradzikwa.
The workshop provided a platform to delve into various ways in which sustainable insurance can contribute to building climate resilience. This includes incentivizing risk reduction and prevention measures, as well as promoting sustainable business practices and investments.
Kelvin Massingham, the Director of Risk and Resilience at Financial Sector Deepening Africa, echoed Muradzikwa’s sentiments highlighting the critical role of insurance in delivering resilience to these climate shocks.
“As temperatures warm, you get extreme events that are occurring more and more like the drought that is currently happening, floods, tropical cyclones, and insurance provides a really critical solution in terms of delivering resilience to these climate shocks,” Massingham explained.
He further said there is need to engage the private sector, particularly the insurance industry, in offering solutions to address agricultural risks in Zimbabwe.
