The CDRFI (Climate and Disaster Risk Finance and Insurance) Africa Forum have called for a regional risk pool to strengthen financial protection for public assets and critical infrastructure against climate and disaster risks.
The CDRFI Africa Forum in Nairobi was attended by representatives of governments, insurance regulators, development partners and insurance market actors from 21 countries to advance climate and disaster risk financing and insurance across Africa. The inaugural event took place on 14-15 September.
Delegates opened proceedings with a shared call to action: identify the assets most exposed to disaster risk, sharpen the data behind those risk assessments, and put financing mechanisms in place well before disaster strikes, The East African Business Times reported.
The Forum has mandated ZEP-RE, a pan-African reinsurer, to support the design, establishment and operationalisation of the thematic risk pool.
Participants highlighted the importance of reliable national and regional risk data, stronger analytical and modelling capabilities, continued innovation in insurance markets and risk-pooling mechanisms to address the systemic nature of climate and disaster risks.
To move from declaration to implementation, participating governments also launched a peer-to-peer Community of Practice on Climate and Disaster Risk Finance and Insurance in Africa. This will provide a platform for governments to share experience, strengthen technical and institutional capacity, and translate the commitments of the
Africa insures 3 -5% of Nat CAT losses, with the insurance gap estimated at $7–15bn annually.