From Storms to Solutions: Reinsurance in the Face of Climate Chaos

Lawrence Nazare, CEO of Continental Re, underscores the immediate and transformative impact of climate change on the insurance and reinsurance industries globally and within Africa.

The unexpected severity and frequency of climate-related events have rendered existing cost models obsolete, escalating catastrophe insurance costs. Traditional approaches are questioned, with insurers withdrawing from regions like North America due to the disproportionate impact of events on their balance sheets.

Climate change has globalized catastrophe risk, challenging the exclusion of once considered low-risk regions. The increased costs trickle down to individuals, prompting a societal re-evaluation of climate-related risks.

Nazare advocates for a proactive role of reinsurance in shaping society's resilience, emphasizing collaboration among authorities, regulators, industries, and the reinsurance sector.

A multi-pronged approach, similar to the public-private partnership model in South Africa and Namibia, is essential. The urgency for collaboration, proactive risk management, and evolving insurance models is emphasized in navigating the storm of climate change and fostering resilient communities.

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