Being one of the sectors most affected by climate change, the insurance industry is hard at work on the eve of the COP22, which will be held in Marrakech.
Its role in the identification of risks, their assessment, their prevention and in the funding climate is no longer to demonstrate. Invest in projects that are climatically virtuous requires a relaxation of the regulation of the insurance sector. A roadmap developed by all regulators (BAM, AMMC, ACAPS) will be exposed to COP22.
Labelled COP22, the conference, under the theme : “climate change : challenges and opportunities for the insurance industry”, organised yesterday by the moroccan Federation of insurance companies and reinsurance companies (FMSAR), is a strong moment for the operators of the sector eager to discuss the challenges to be faced. The meeting was graced by the presence of Aziz Akhannouch, minister of Agriculture, Khalid Safir, wali of Casablanca, Nizar Baraka, president of the EESC and of the scientific Committee of the COP22, Hassan Boubrik, president of ACAPS, of the presidents of the Federations of the French insurance and african and other eminent personalities. The topic discussed far and wide, whether by the insurers or by the environmental experts, denotes that with the climate changes, new risks, which may be difficult to control, are on the horizon. As has been so well explained Mohamed Hassan Bensalah, president of the FMSAR, “our industry is certainly the most affected and most impacted by the global warming and all the catastrophic risks. It must provide solutions to mitigate the impact of phenomena of high intensity, but which occur with a very large uncertainty”.
Has new challenges, new mechanisms
Hassan Boubrik, president of ACAPS, the impact of climate change on the insurance sector calls through three areas : how to price these new risks, how to prevent them and, more importantly, what capital is put in place. He believes that a warming of 3°c or 4°c would make the risk uninsurable.
Hassan Boubrik calls on insurance companies to finance projects, including the costs linked to the respect of the environment. That is to say, the asset allocation of insurance companies should now take into account the variable ecological. But to invest in a sector such as renewable energy, the regulator is aware that a gradual easing of the regulation is required. H. Boubrik recalls, moreover, that a piece of road, whose axis will be exposed to the COP22, has been developed by all regulators (BAM, AMMC, ACAPS). In the pane on the insurance, it is a question of prevention and financing of renewable energy.
In the aftermath, it was recalled that the commitment of the insurance industry to offer coverage to those populations most exposed to climate risks, does not date from today. Alluding to the agricultural insurance in place since 2011, in the framework of a public-private partnership between the ministry of Agriculture and the Mutual insurance company, MAMDA. Coverage, recalled also by Aziz Akhannouch, in his speech where he put the emphasis on the initiative of the ‘blue belt’ developed by his department. According to the minister, the 22nd Conference of parties to the convention united Nations framework on climate change must be a COP of agriculture, with regard to its role in food security and adaptation to climate change. Production agriculture will need to increase by 4% per year until 2050, the year of doubling of the african population (2.5 billion people). To achieve this, we need investments and, in turn, funding.
In the same wake, its department and its partners will address three complementary initiatives to COP22, namely “Triple-A”, “Oasis sustainable”, and “The blue Belt”. A. Akhannouch noted, moreover, that the COP22 will be an opportunity to share its experience and its know-how in the field of agriculture with the african countries, shedding light on the Green Morocco Plan (PMV).
One thing is for sure : the insurance industry has not waited for the COP22 to develop hedges is able to allow economic agents to improve their resilience in the face of events. Also, its role in the financing climate is of great importance. Create an ecosystem with the entire chain that constitutes the financial sector, has been an important element to deploy the roadmap that will be exhibited soon in Marrakech.
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