NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Thursday, August 27, 2015

Improved access to insurance can boost the resilience of vulnerable communities to recurrent disasters such as droughts and floods in Sub-Saharan Africa.

“Insurance needs to be recognized as an integral tool in reducing poverty as it protects those with low incomes against specific perils that are insured,” said Nelson Kuria, board member of the International Co-operative and Mutual Insurance Federation (ICMIF) and former Chief Executive Officer of the CIC Insurance Group – Kenya.

Disasters often sink low-income communities deeper into poverty.

In parts of northern Kenya, where pastoralism is the predominant source of livelihood, recurrent droughts have decimated livestock and increased economic hardship as families have little time to replenish their herds before the next disaster strikes.

The Sendai Framework for Disaster Risk Reduction, a 15-year global roadmap adopted in March, aims to curb disaster mortality and losses substantially. It highlights the importance of an inclusive approach and the roles of public and private stakeholders alike.

The provision of insurance products is one of the ways through which the public and private sectors can help to reduce vulnerability and its debilitating consequences and empower communities.