By Citizenship Daily
In Accra, Ghana on April 3, more than 250 insurance industry leaders, regulators and policymakers gathered for the first Nairobi Declaration on Sustainable Insurance (NDSI) Summit, a landmark event focused on driving sustainable insurance solutions across the continent.
In the course of three days, industry leaders, regulators and policymakers explored strategies to build resilience against climate risks, scale up agricultural and renewable energy insurance, while unlocking the potential of insurance capital for sustainable investments.
The Africa Sustainable Insurance Summit, hosted by NDSI in conjunction with the National Insurance Commission, Ghana, and supported by FSD Africa, took place at the Movenpick Ambassador Hotel in Accra from 2nd to 4th April 2025.
According to Kaara Wainaina, the Acting Director, Communications & Engagement of FSD Africa, the conference brought together a large representation of the African insurance sector to tackle critical sustainability issues, with a particular focus on disaster risk management, climate resilience, and the role of insurance in a just transition to a sustainable economy.
Welcoming delegates to the first NDSI summit, Dr Abiba Zakariah, Commissioner at the National Insurance Commission, Ghana, called for greater collaboration across the insurance industry to develop a more sustainable sector. Pointing to an old Ethiopian proverb, she said “When spiders work together, they can tie up a lion”. Talking of the risks facing the continent, she said the financial losses in Africa resulting from climate change have been estimated at some US$440 billion. “We can survive the crisis and provide security for Africa as insurers, growing sustainably and protecting the most vulnerable. I call on insurers to adapt and revitalise to build a more resilient future.”
Dr Cassiel Ato Forson, Ghana’s Minister of Finance and Economic Planning, stressed his new government’s determination to drive sustainability and resilience through financial services, placing new priority on green financing. “A sustainable insurance industry is essential to protect policyholders. The government is working with the National Insurance Commission to deliver this. As country, we are highly vulnerable to climate change and we must accelerate agriculture models to protect the smallholder farms. On green energy, the insurance industry has a pivotal role in developing insurance solutions to promote green solutions. We need to derisk green energy products.”
Among the topics discussed during the summit were the challenges of underwriting against agricultural and disaster risk. Despite agriculture’s significance in African economies—where it accounts for about 60% of employment—the sector remains acutely vulnerable due to heightened exposure to climate variability and chronic under-investment in risk-absorbing instruments such as insurance. Currently, less than 3% of African farmers have access to agricultural insurance, leaving them exposed to financial shocks.
Delegates were presented with case studies of agricultural insurance products, regulatory barriers, and opportunities to scale parametric insurance solutions across Africa. Speakers also discussed the regulatory barriers to greater development of agricultural risk products as well as the role of government in promoting this type of insurance.
Discussions also focused on the role of insurance in supporting Africa’s growing renewable energy sector. Given the high upfront capital investment required for renewable projects, insurance solutions can help de-risk investments and attract private sector funding. Insurance-backed de-risking mechanisms could help unlock up to $2.8 trillion in climate finance by 2030, according to United Nations Climate Change.
Delegates discussed the ways that Africa’s insurance industry can leverage insurance capital to change the risk profile of renewable energy projects and thereby attract private investment. They also considered transition risks as markets move away from traditional fossil fuels, again asking how regulatory change and government intervention could play their part.
One of the key themes which emerged from the summit was how the intersecting trends of decarbonization, decentralization, and digitization are shaping the future of insurance in Africa.
Another key theme was the role of the insurance industry in mobilizing capital for sustainable investments. Insurers are not just underwriters—they are also major institutional investors, with long-term portfolios capable of driving systemic change. Yet in Africa, only a fraction of insurance capital is currently being deployed into green, resilient, or inclusive investments.
Philip Lopokoiyit, NDSI Chair & CEO ICEA Lion Group, said: ‘The insurance sector does hold immense potential as a catalyst for meaningful change. NDSI is dedicated to raising awareness, advocating for sustainable insurance integration in core business models, and fostering a unified African perspective on sustainable insurance practices. ‘
Launched in April 2021, The Nairobi Declaration on Sustainable Insurance is the declaration of commitment by African insurance industry leaders to support the achievement of the UN Sustainable Development Goals (UN SDGs). Accredited by the United Nations Environment Programme, Principles for Sustainable Insurance (UNEP PSI) and with more than 230 signatories, it is promoting action by the African insurance sector towards sustainability goals.
This Africa-focussed initiative was designed to encourage and support the African insurance market players to commit to sustainable insurance practices. It is also a convening platform for a united African voice on the global stage on climate change issues affecting the continent and the insurance sector.
The Nairobi Declaration on Sustainable Insurance is an alliance of senior leaders in Africa’s insurance ecosystem who are committed to accelerate solutions to major sustainability challenges – ranging from climate change and ecosystem degradation to poverty and social inequality – particularly in a post-Covid-19 world.
To date, more than 230 insurers, reinsurers and brokers have signed the Declaration and committed to the five key areas including risk management; insurance; investment; policy, regulatory and industry engagement; and sustainable insurance thinking and practices.
