IRM Board member, Dorothy Maseke, CFIRM, attends COP27 and announces the creation of the African Climate Risk Facility
During COP27, on Finance Day, (Wednesday, 9th), IRM Board member, Dorothy Maseke, announced the set-up (by 85 signatories) of the Nairobi Declaration on Sustainable Insurance, the African Climate Risk Facility. This facility by African insurers will take a targeted approach to respond to climate change by committing to underwrite $14bn of cover for climate risks, to protect 1.4 billion people on a cumulative basis by 2030, against floods, droughts, and tropical cyclones. This facility will include a multi-donor Trust Fund to support market-building activities up until 2030.
In a bid to move the market towards sustainable self-functioning, an amount of 900 million USD is required from development partners for the Trust Fund. The fund will be used for premium subsidies, product development, and capacity building.
Watch Dorothy’s passionate appeal and the ambitious steps to address the climate risk challenge below:
The Nairobi Declaration on Sustainable Insurance is a statement of commitment by African Insurance Leaders to support the Sustainable Development Goals (SDGs). Signatories to the Declaration are drawn from across the insurance sector in Africa.
On Resilience Day, 10th of November, at the same event, Dorothy was in a panel discussion with the VP of Africa at the Global Energy Alliance for People and Planet (GEAPP) to further showcase the implementation agenda on how insurance can be used to finance the resilience agenda. Insurance is a critical tool as it addresses three core components, risk management (or reduction of risks), investments and compensation, and payment of insurance claims when the risks materialise. This session was hosted by the UN High-Level Champions and the Global Resilience Partnership and the UN Food and Agriculture Organization (FAO).
On the 8th of November, still at Sharm El-Sheikh, Dorothy spoke at a side event hosted by Oliver Wyman in partnership with the Taskforce on Nature-Related Financial Disclosures (TNFD) and FSD Africa. The event whose theme was "Nature into Numbers” highlighted the fact that nature underpins the global economy with an estimated 44 trillion USD economic output that is highly or moderately dependent on nature. Dorothy indicated the steps her institution (ICEA LION) is undertaking to implement the TNFD Africa pilot.
The panel also highlighted the opportunities that nature presents to financial services firms including the possibility of new business lines. The conclusion was that it is necessary to put a price on nature!