By Favour Nnabugwu
The African Insurance Organisation (AIO) and Faber Consulting have presented the annual “Africa Insurance Pulse” survey.
The 2022 edition dedicated a study on climate change and its impact on the African insurance sector.
The survey was conducted among insurance, reinsurance and brokerage companies operating in Africa.
According to the report, the continent is particularly vulnerable to the effects of climate change due to its exposure to extreme weather conditions, its low adaptive capacity and its poverty.
The ranking by risk makes floods and droughts the two most feared weather events in the local insurance market.
Despite the increase in the frequency of natural disasters, insurance demand and penetration remain low due to the lack of consumer awareness.