AKI took part in the 4th PSI Africa Market Event in April 2021. The event, the first in East Africa, was part of the Principles for Sustainable Insurance (PSI) activities under the UN Environment Programme (UNEP) Finance Initiative.

The event was hosted by ICEA LION and sponsored by FSD Africa and Africa Risk. The event brought together key players in the African insurance industry where those in attendance thrashed out issues of sustainable insurance linked to the sustainable development goals (SDG’s) and deliberated ways of incorporating it in their business processes. 

Through sustainable insurance practices, the industry will be in a better position to develop innovative solutions, reduce the risks, improve business performance and contribute to environmental, social and economic sustainability. 

Africa joined the rest of the world in the march to a better world by signing the Nairobi Declaration, where the industry committed to take the following actions.

I. Risk management

• Advance the assessment, management and disclosure of climate change-related risks and opportunities, building on the PSI's project to pilot the recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD)  
• Advance the assessment, management and disclosure of environmental, social and governance (ESG) risks and opportunities across all lines of business (non-life, life & health, pensions), building on the PSI’s ESG guide for non-life insurance business and other PSI guidance on specific sustainability issues (e.g. illegal, unreported and unregulated fishing; plastic pollution, tobacco risks, UNESCO World Heritage Sites)  

II. Insurance  

•  Support the Insurance Sustainable Development Goals (Insurance SDGs) being developed by the PSI to harness insurance products and solutions to help achieve the SDGs 
•  Close the insurance protection gap by actively developing and promoting inclusive and innovative insurance solutions (including through insurtech and nature-based solutions) for households, businesses and governments in order to build resilient cities and communities as well as sustainable food and agriculture systems, among others 
•  Support the transition to a resilient, net-zero emissions economy, building on the work of the PSI to establish a Net-Zero Insurance Alliance  

III. Investment

• Support the transition to a resilient, net-zero emissions economy, building on the work of the UN-convened Net-Zero Asset Owner Alliance 

IV. Policy, regulatory and industry engagement

• Engage with policymakers, regulators and industry associations on key sustainability issues for the African insurance industry, including through the work of the Sustainable Insurance Forum (SIF), International Association of Insurance Supervisors (IAIS), and Vulnerable Twenty Group of Ministers of Finance (V20) 

V. Sustainable insurance thinking and practices 

• Promote the adoption and implementation of the four Principles for Sustainable Insurance across African insurance markets 
• Enhance the knowledge and capacity of the African insurance industry on sustainable insurance 
• Shape the sustainable insurance agenda in Africa and strengthen the global effort of insuring for sustainable development 

We call on all insurers to embrace sustainable insurance practices in their day-to-day business to build sustainable and resilient businesses and communities.