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This report underscores that insurance is not just a safety net but a strategic enabler of the green economy, and insurance brokerages must embrace this role fully to remain relevant and impactful in a changing world.
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The transition to a green and climate-resilient economy is one of the most urgent global priorities, and while governments, investors, and financial institutions often take centre stage, the insurance industry plays an equally critical yet often underappreciated role in this transformation. In climate-vulnerable regions like East Africa, insurers not only protect lives and assets but also catalyze sustainable, low-carbon economic growth by mitigating risks that could hinder progress toward clean energy and climate resilience. Through their ability to safeguard investments and enable financing for climate-resilient infrastructure, insurers form a vital backbone of the green transition.
Insurance is the invisible backbone of the green economy, enabling investment, protecting lives, and ensuring resilience. As Kenya and Africa advance toward low-carbon development, insurance brokerage firms are uniquely positioned to be catalysts for this transformation. By championing innovative, climate-aligned insurance solutions, enhancing climate risk literacy, and fostering strategic partnerships, brokers can guide capital toward sustainable ventures, promote resilience, and advocate for a just, inclusive, and financially sustainable green
Insurance serves as the backbone of the green economy. By covering high-risk projects such as wind farms, solar parks, and geothermal plants, insurers provide the assurance investors and banks need to finance these ventures. Without insurance, many green investments would not be viable due to financial and operational uncertainties.
Insurers cushion communities, businesses, and economies against climate shocks such as floods, droughts, and storms. Through timely payouts and coverage, insurance provides a pathway to recovery, helping sustain livelihoods and rebuild critical infrastructure after climate disasters.
Through underwriting and risk pricing, insurers guide capital flows toward low-carbon and climate-resilient ventures. By rewarding sustainability and discouraging high-carbon risks, they act as a financial compass influencing the global transition to cleaner economies.
Insurance supports adaptation by covering renewable energy projects, biodiversity protection, and sustainable agriculture. Climate risk insurance, in particular, has become essential in Africa, where vulnerable regions face increasing exposure to extreme weather.
The industry is developing sophisticated internal tools to evaluate climate-related risks — both physical (e.g., floods, storms) and transition (e.g., policy and market changes). These assessments help businesses and governments anticipate vulnerabilities and adopt sustainable practices.
By taking on risk and enabling recovery, insurers build the confidence necessary for investors, governments, and communities to commit to clean energy and sustainability initiatives. Insurance ensures that the transition to green economies is not only possible but also economically viable.
Beyond risk transfer, insurers help prevent and transform risks by promoting best practices and integrating climate risk assessments into their underwriting. Tools that evaluate physical risks (e.g., exposure to extreme weather), regulatory changes, and carbon intensity inform these efforts.
African insurers actively cover infrastructure projects including hydroelectric dams, renewable energy facilities, and biodiversity conservation, thereby catalyzing investments critical for energy transition and environmental protection.
The green transition is not merely an environmental goal but an economic one. Insurance influences which investments thrive by providing protection and incentives for sustainable development. The sector’s engagement determines the pace and inclusivity of Africa’s green growth.
Insurance brokers act as intermediaries between insurers and clients, making them vital change agents in accelerating the green transition. Here’s how they can contribute:
Kenya’s new VASP Act and IRA regulations formalize digital-asset oversight, enabling tailored insurance for risks like hacking, fraud and key loss. Global insurers now offer crime, custody, cyber and D&O coverage as adoption grows. Strong governance and secure custody remain essential for safe digital-asset use.
This report presents innovative, data-driven insurance models tailored for corporates and the creative industry, offering preventive medical cover for employees and specialized protection for artists’ unique talents and income. The solutions aim to boost insurance uptake, enhance resilience, and deliver faster, more relevant coverage across both sectors.
The report analyzes how regulatory reforms, technology, and fraud risks are transforming Kenya’s insurance industry. It focuses on claims reforms, auditor rotation, AI adoption, and fraud control, outlining their impact on transparency and efficiency. For brokers, it underscores the need for compliance, digital readiness, and stronger ethical practices to build trust and stay competitive.
