Namibia PM calls for fresh insurance tactics to combat catastrophes

Cynthia Ezekwe

Saara  Kuukongelwa-Amadhila, the prime minister of Namibia,has called on  insurance operators in Africa  to adopt innovative strategies, and robust technologies  to cope with the increasing incidence of natural disasters across the continent. 

Kuukongelwa-Amadhila, who made the call at the  50th conference and annual general assembly of the African  Insurance Organisation (AIO) in Windhoek, Namibia, highlighted the critical role of local  insurance institutions in mitigating the impacts of climate-related catastrophes.

Speaking during the conference tagged, “Coping with Rising Natural Catastrophes Across Africa,” she emphasised the importance of building the capacity of local insurance markets to handle risks internally rather than relying excessively on foreign insurers, adding that strong insurance entities are essential for enhancing efficient institutions in the economy, offering responsive solutions, and ensuring financial stability.

The prime minister stressed the need for local insurance industry and the wider African industries to  embrace solutions to address instances of natural catastrophes, highlighting the need for specialised insurance coverage to enhance resilience against natural calamities.

Kuukongelwa-Amadhila called for robust partnerships among local insurers and international institutions to support the realisation of the African Union’s Agenda 2063, noting that climate change has significantly increased Africa’s vulnerability to various natural disasters, including floods, droughts, hurricanes, and wildfires.

“These events not only threaten lives and livelihoods but also undermine economic progress and exacerbate poverty and inequality.It is important to spread risks across the border with players locally and abroad,’’ she said.

Kuukongelwa-Amadhila identified the essential role of  insurance institutions in risk management, promoting sustainable investment, and mobilising savings for market development, reiterating the need for the insurance industry to ensure wide coverage, innovate new products, and leverage technology to meet the evolving needs of customers.

The prime minister stressed the importance of a supportive regulatory environment to ensure market conduct, industry growth, and sustainability, while urging industry players to prioritise financial inclusion, ethical business practices, and the use of technological advancements to enhance service delivery.

Kuukongelwa-Amadhila also expressed confidence that the AIO could play a collaborative role in providing affordable trade  insurance to mitigate risks and encourage African entities to trade under the African Continental Free Trade Area (AfCFTA).