Experts urge underwriters to develop Climate Risk Insurance

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Operators in the insurance industry have been urged to develop products that will reduce the effects of climatic change and enhance the insurance sector’s growth.

Experts, who participated at a workshop on “climate risk insurance”, made the suggestion while speaking on how the technical ability of the insurance sector could be enhanced to reduce climate risks.

The workshop was organised by the Community Conservation and Development Initiatives in collaboration with the Germany’s Ministry of Foreign Affairs.

The Director, Programmes, CCDI, Kofo Adeleke, in a statement on Tuesday, said the programme was designed to examine how insurance-related mechanisms could contribute to climate resilience.

According to the director, the programme emphasises how low-income groups can absorb loss and recover from disaster impact.

Adeleke was quoted as saying that the organisers of the event stressed the need for collaboration between the public and private sectors in risk reduction and climate insurance.

The Commissioner for Insurance, Alhaji Mohammed Kari, who was the key speaker at the event, was quoted to have said that the insurance industry could make a considerable contribution to global efforts in order to reduce the impact of climate change.

The Chief Risk Officer, Continental Reinsurance Plc, Mr. Abayomi Judah, while making a presentation on “Principles of sustainable insurance:  Continental Re’s journey to date,” said there must be a change in culture, which should be reflected in the attitudes of employees.

Participants stressed that the insurance industry needed to be more creative and develop new and unique green products by tapping global experience in green insurance products and services.

The statement quoted representatives of the National Insurers Association as suggesting the need for a working group to address the problem of limited awareness in the industry.

 

Source: Punch