Gallagher Re Strengthens Resilience of Public Entities in Africa Against Financial Impacts of Climate & Disaster Risks
Despite the increasing frequency and severity of climate and disaster events occurring globally, the vast majority of these risks are uninsured. In fact, in 2022, 61% of global disaster losses were not covered by insurance. In Africa, the protection gap is much greater at more than 90%.
In an effort to strengthen the resilience of public entities and businesses in Africa against the financial impacts of climate and disaster risks, Gallagher Re’s Public Sector & Climate Resilience Solutions Practice continues to partner with governments, regulators, (re)insurers and other stakeholders to offer customized solutions for each country.
Most recently, the Ministry of Finance of the Democratic Republic of the Congo appointed Gallagher Re to identify solutions for the development of the insurance penetration rate* for DRC’s mining industry – a sector attributed as a key driver of economic growth in the region and social development in the future.
"This advisory project is the beginning of a highly strategic collaboration with the Ministry of Finance for the development of a stronger (re)insurance and resilience industry in the DRC,” said Antoine Bavandi, Global Head of Public Sector & Climate Resilience Solutions. “We look forward to contributing to a stronger (re)insurance sector and to an improved business environment in line with DRC’s social and economic development plans.”
This advisory project is one example of Gallagher Re’s Public Sector & Climate Resilience solutions implemented in Africa. In April of this year, African Risk Capacity Limited appointed Gallagher Re for the transfer of climate and food insecurity risks. In 2022, Senegal’s Public Solidarity Fund selected Gallagher Re for the financial management of climate risks and food insecurity through the development of a comprehensive risk financing strategy. Additionally, Gallagher Re launched a partnership with Africa Re last year to offer solutions such as risk transfer to finance emergency response costs in the aftermath of a crisis, national insurance schemes for agriculture and crop, as well as weather derivatives and parametric products for public infrastructure, energy or tourism sectors.
*The insurance penetration rate is a measure of the importance of insurance activities relative to the size of the economy, typically the ratio of annual premium over GDP.