International Energy Insurance (IEI) Plc says it is adjusting its models of product offerings and risk management capabilities to respond to climate change on the heels of global calls on the private sector to rise against the ills of natural disasters ravaging Africa and now Nigeria, as a result of the menace.
A subsidiary of Norrenberger Group, IEI, stated this on the sideline of the just concluded 50th Conference and Annual General Assembly of the African Insurance Organisation (AIO) with theme, ‘Coping With Rising Natural Catastrophes In Africa,’ which held in Windhoek, Namibia.
The group said insurers across the continent also need to rethink their models, product offerings and risk management capabilities and make adjustments to suit the reality of time.
Mr Tony Ede, Group Managing Director, Norrenberger Group, who was a delegate at the AIO conference, said the topic of the programme couldn’t have come at a better time.
He added that global natural disaster is taking place repeatedly resulting in the world losing $380 billion in 2023 and put losses emanating from insurance at about $118 billion.
Mr Ede stated that this had informed the decision of the AIO to rethink natural disasters, noting that it is important for insurance companies to rethink their models to withstand changes in the global economy because natural disasters and climate change have come to stay.
Mr Olasupo Sogelola, Managing Director/CEO, International Energy Insurance (IEI) Plc, said insurance has to move towards supporting climate change due to the impact of climate change especially on agricultural products in Nigeria.
Sogelola stated that IEI is coming up with products that would enhance and support climate change in all ramifications.
“Take Namibia for example, entering into the country from the airport, you will see patched land that shows that obviously something is wrong there. I believe that nothing draws attention more than what you see rather than what you are talking about without seeing it.
“So, insurance has to move now, starting from the impact of climate change even on agricultural products in Nigeria. Agric insurance is something that has to respond quickly at the moment along with other classes of insurance.
“As insurance experts at the conference discussed, there are six agendas that the conference is looking at and top of agenda is pulling resources together to start looking at what has to change in insurance.
“For example, we got to start rewarding people for having properties that are energy compliant because properties with solar panels are part of the things that will reduce the impact of climate change. We have to start giving discount such that when we are quoting for a fire policy, we give discount because the policyholder has a solar panel.
“For us at IEI, we are coming up with products that would enhance and support climate change in all ramifications. We have two important goals at IEI. The first is about our value proposition to the system which is to pay claims as quick as possible.
“The second is about product creation. I believe that this programme has come at a time where we start looking at products that helps to improve and draws attention to climate change.”
so that when you come to my company to buy a policy, the moment you tell me you have a solar panel then we will be able to give you discount when agreed with other insurers in the country,” Sogelola said.
Speaking on the financial performance of IEI, Mr Sogelola said the firm recorded tremendous growth in its first quarter result, adding that the company’s premium income grew by over 300 percent in the first quarter of this year, better than what was achieved in the first quarter of 2023.
“I can say categorically that we are moving forward and by the end of the year, we should be coasting very well,” he stated.
The Chief Finance Officer, Norrenberger Group, Queen Ehi-Uujamhan, while speaking on climate change funding, said climate change is a topical issue because the impact is seen all around like flooding, drought, among others.
She said that funding for climate change is something that the multilaterals, individuals, government and the private sector have to look at holistically.
Ehi-Uujamhan said, “Currently we have a multilateral like the African Development Bank (AfDB) providing grants. I think the very prudential thing for government and others to do is to provide funding to areas that are prone to disasters. They need to make funds available for renewable energy and irrigation to militate against drought.
“The private sector on its part should look at it from a three piece perspective. We all want to be profitable but in being profitable we have to look after the planet and the people. I believe that this is a very holistic way of funding. The multilaterals will continue to provide funding, responsible government also need to make those provisions and subsidies available.
“For the private sector like us, the insurance impact has to be taken seriously even as we ensure that we remain profitable while protecting the planet and her people.”
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