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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 insurance companies deal with the phenomenon and what solutions do they offer?
« Increasingly extreme weather events that have doubled the amount of damage over the past ten years “, emphasizes Ayouba Seydou. He is the group director for Olea Insurance Solutions Africa, a pan-African broker. ” The biggest risk in fact today is the climate risk. Above all, we are seeing more and more so-called natural disasters: floods, droughts, more and more frequent phenomena. Climate change impacts farmers, but not only. It is urgent to find a solution. »
For millions of farmers hit harder and harder by the effects of climate change, insurance is essential, but few insurance products today are suitable for this type of public. ” We have indeed all the problem of correctly sizing the products in relation to the purchasing power, explains Emmanuel Brulé, Managing Director of Sanlam Pan-African Insurance, the first pan-African insurer. Many industrial groups or large companies are insured for all of their needs. And for individuals or small auto-entrepreneurs, we see the gradual emergence of solutions for what is called microinsurance. And there, the insurance still has a job to do. To find very simple and inexpensive products. »
« Contribute through innovation, distribution »
Among the avenues explored, insurance via mobile money: ” We try to contribute through innovation and distribution. We have entered into a strategic partnership with MTN, which should help us reach more easily all populations that do not yet have this type of protection. »
In this sector, some regions are more advanced. ” The countries of East and South Africa are much more developed in this type of solution because they have cooperatives with insurance coverage systems that are or subsidized by the government with insurance premiums that are not very dear “says Ayouba Seydou.
Beyond the coverage of a farm, insurance can allow the reimbursement in the event of a poor harvest of inputs, fertilizers, seeds.