Namibian Prime Minister Advocates for Innovative Insurance Strategies in Addressing Natural Disasters

Speaking at the 50th Conference and Annual General Assembly of the African Insurance Organisation (AIO) in Windhoek, Saara Kuukongelwa-Amadhila, the Prime Minister of Namibia, highlighted the pressing need for the insurance industry to adopt innovative strategies in tackling the escalating frequency of natural disasters across Africa.

Kuukongelwa-Amadhila stressed the critical role of local insurance institutions in mitigating the impacts of climate-related catastrophes. She underscored the significance of bolstering the capacity of local insurance markets to handle risks internally instead of relying excessively on foreign insurance placements.

Emphasizing the importance of building resilience against natural calamities, the Prime Minister called for the development and adoption of specialized insurance coverage tailored to enhance protection against such disasters.

Addressing the severe drought affecting Namibia and several SADC countries, Kuukongelwa-Amadhila revealed that the Namibian government had declared a state of emergency due to the exacerbation of food insecurity caused by the drought.

Advocating for robust partnerships between local insurers and international institutions to support the realization of the African Union’s Agenda 2063, she urged the African insurance industry to embrace solutions to combat natural catastrophes.

Highlighting the theme of the conference, “Coping with Rising Natural Catastrophes Across Africa,” Kuukongelwa-Amadhila noted the significance of sharing ideas and formulating strategies to safeguard people’s well-being amidst these disasters.

The Prime Minister pointed out that climate change had notably increased Africa’s vulnerability to various natural disasters such as floods, droughts, hurricanes, and wildfires, emphasizing that these events not only endanger lives and livelihoods but also hinder economic progress and exacerbate poverty and inequality.

Kuukongelwa-Amadhila reiterated the imperative role of insurance institutions in risk management, facilitating sustainable investment, and mobilizing savings for market development, emphasizing the necessity for the industry to ensure broad coverage, innovate new products, and leverage technology to meet the evolving needs of customers.

She stressed the importance of spreading risks across borders, both locally and internationally, underscoring the need for local institutions to build the capacity to minimize external placements and foster the growth of the local insurance industry.

The Prime Minister commended NamibRe for its support to Namibian insurance companies and urged the industry to prioritize financial inclusion, ethical business practices, and the utilization of technological advancements to enhance service delivery and sustain industry growth.

Expressing confidence in the potential of the African Insurance Organisation (AIO) to provide affordable trade insurance, Kuukongelwa-Amadhila highlighted the organization’s ability to mitigate risks and encourage African entities to engage in trade within the framework of the African Continental Free Trade Area (AfCFTA).

As Namibia grapples with the challenges posed by an El Niño-induced drought, the Prime Minister emphasized the urgent necessity for insurance solutions to support affected individuals and businesses, asserting that robust insurance entities are crucial for bolstering efficient institutions in the economy, delivering responsive solutions, and ensuring financial stability.