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Michael Magoronga, Midlands Correspondent
PLANS are at an advanced stage to introduce weather index-based insurance as the insurance and pensions sector joins the fight to mitigate the adverse effects of climate change.

Zimbabwe and the world at large have been faced with a myriad of challenges owing to climate change resulting in extreme droughts, heavy and unprecedented rains, and extremely hot temperatures, among other challenges.

Speaking during the second session of the journalists mentorship programme, Insurance and Pensions Commission (Ipec) insurance director, Mrs Sibongile Siwela said the regulator was working with development partners to introduce weather index-based insurance.

“We are on the verge of agreeing on terms with a development partner to assist in the weather-based insurance development,” she said.

“This is a result of adverse effects of climate change, which the country is faced with.”
Mrs Siwela said there was a need for the insurance sector to step up the fight against climate change. We are yet to come up with a client related risk. For example, if we are faced with droughts, we lose both crops and cattle.

“We are looking at mitigation measures to reduce the impact of the adverse effects of weather such as compensating the farmer,” she said.

Zimbabwe is taking part in the insurance pilot lab, which will also assist in the mitigation measures to do with climate related risks like drought.

“The Insurance Lab will primarily focus on formulating mitigatory measures to do with climate related risks. We are spearheading the industry’s participation,” said Mrs Siwela.

The pilot lab is sponsored by Access to Insurance Initiative and other countries participating are Costa Rica, Grenada and Zambia. — @michaelmagoron1.