Climate Risks and Insurance Solutions

Summary:

Recent flooding in Kenya, a result of climate change, has caused significant loss of life and property damage. Such climate-related disasters pose severe risks to lives, livelihoods, businesses, and the economy. With the increasing frequency and intensity of these events due to global warming, it’s crucial to adopt risk management strategies, including insurance.
Climate scientists warn that natural disasters are becoming more frequent and dangerous, with global warming being the primary driver. July 2023 was recorded as the hottest month in 120,000 years, leading to extreme weather events like heatwaves and heavy floods. Areas near riparian zones and wetlands are particularly vulnerable.
To mitigate the financial impact of such disasters, insurance is essential. It provides financial protection against losses due to extreme weather events, ensuring continuity for individuals, families, and businesses. Insurance products, categorized into ‘life’ and ‘general,’ can cover risks such as drought, floods, and other climate impacts.
Ultimately, insurance serves as a vital risk management tool, helping to protect against the financial burdens of climate-related disasters.