The Sunday News
Judith Phiri, Business Reporter
PLAYERS in the insurance industry in Zimbabwe have taken steps to address climate change, as its effects continue to be felt through the long-term shifts in temperatures and weather patterns.
The country like any other on the globe has not been spared by climate change which has emerged as one of the biggest environmental challenges facing the world.
Various efforts around the world and in Zimbabwe are being made to ensure adaptation and mitigation strategies are put in place to reduce climate change risks.
Responding to questions from Sunday News Business, Insurance Council of Zimbabwe (ICZ) underwriter, Ms Benedict Marinda said the insurance industry was now actively participating to ensure climate change mitigation and adaption measures were put into place.
“Traditionally insurance covers do not cover emerging risks. Emerging risks are risks that were not there in the past such as climate change and cyber risks. In Zimbabwe, insurance generally does not cover catastrophic risks like natural disasters or drought.
“However, the industry has taken some steps to address climate change. The traditional agricultural insurance policies, the multi-peril covers, do not adequately address climate change. The industry is now joining the rest of the world in embracing weather index insurance since this has a more pronounced response to the effect of climate change,” she said.
Ms Marinda said the impact of climate change has been felt in the country over the years with the average temperatures in Zimbabwe being said will increase by the end of the century and annual rainfall decline by between five to 18 percent.
“This affects Zimbabwe’s food security, energy supply, health and economy. The impact of climate change has been visible in rural Zimbabwe leaving some communities facing food insecurity, scarcity of water and loss of livestock.
“Climate change has brought about an increase in natural disasters like earthquakes and cyclones. This brings about extensive damage to people’s houses and property. In most cases, the people will not be able to recover from such incidences and will need assistance from the Government,” she said.
“In 2003, there was Cyclone Japhet which resulted in some deaths. In 2019 there was Cyclone Idai which destroyed houses and livestock, while 171 deaths were recorded and 300 people went missing.
The loss value was US$686 million. Global warming is impacting the country and it is affecting the way we have been farming in the past.”
In terms of the weather index insurance, Ms Marinda said the index-based crop insurance solution monitors specified parameters like rainfall or temperature, using weather stations or satellite data for a specified location.
Ms Marinda said the insurance product was not yet common in Zimbabwe and just a few insurers have it running.
“Other insurers are, however, exploring the product and should roll out the product any time soon. Other countries are at various levels of rolling out the weather index, while countries like Zambia, Tanzania and Kenya are significantly ahead of us on the index insurance,” she said.
She said the multi-peril cover was a crop insurance solution that provides coverage for a wide range of risks such as uncontrollable pests and diseases, flooding, windstorms, frost, hailstorms and fire.
Ms Marinda said it covers all crops from the time of planting until final delivery to the buyer’s or agent’s depot, auction floor, or warehouse in Zimbabwe.
