The Actuarial Society of Kenya (TASK) has announced the formation of a taskforce that will guide the local insurance sector in the sustainable investment practices.
The taskforce will be guided by Financial Sector Deepening (FSD) Africa. It is expected to drive and support readiness of the insurance sector in managing Environmental, Social, and Corporate Governance (ESG) risks and in supporting green finance ( engagement of traditional capital markets in creating and distributing a range of financial products and services that deliver both investable returns and environmentally positive outcomes).
The TASKForce on ESG was unveiled by Kelvin Massingham, Director, Risk and Resilience at FSD Africa and Moses Mutuli, TASK President and General Manager, Sanlam Emerging Markets, during the Annual Actuarial Convention held at Emara Ole Sereni, Nairobi. The two-day event was based on the theme: Greening the Financial Systems that reacts to the present and forthcoming challenges of shifting to a financial system that mobilises capital toward environmental sustainability objectives and addresses climate related risks.
The team unveiled is made up of:
- Dr. Cynthia Ikamari – Lecturer, Multimedia University
- Mercy Kairu – Regional Actuary, Jubilee Life Insurance Company Ltd.
- Cosmas Cheruiyot, AIA – Enterprise Risk Actuary, Sanlam
- Dr FA Joab O. Odhiambo, PhD – Lecturer/ Research Fellow, University of Nairobi
- Ezekiel Macharia – Chief Actuary, Kenbright
- Sheila Gatu, FIA – Resident Actuary, Zamara Kenya Rwanda
- Dennis Ondieki – Actuary, Pioneer Insurance
The TASKForce on ESG will, among other deliverables, offer support in the determination of the impact of physical, transition and liability risks arising from ESG related risks in the insurance industry, promote development of green finance products in the insurance industry, and promote signing of Nairobi Declaration by members of the insurance industry.
“From sharing our resources, to advising governments and institutions on how best to handle environmental financial risks, actuaries remain the best reliable hope and chattels of research, information, and analysis,” said Mr Mutuli during the announcement of the taskforce.
The taskforce comes at a time when insurers are looking at ways of increasing level of financial flows from the public, private and not-for-profit sectors to sustainable development priorities, especially in the wake of the Covid-19 pandemic. Also, says Mr Massingham, the taskforce will offer an opportunity for the African market to come up with solutions and guidelines on ESG. “…through developing products and getting solutions to the market that are relevant for our context; by taking these non-financial factors and integrating them into our financial making decisions so that we can be sustainable”.
The talks on climate finance took centre stage during the COP summit that took place in Scotland. It was evident that Africans have a huge role to play if the goals set down by the UN Framework Convention on Climate Change (UNFCCC) to prevent risks associated with climate changes are to be realized.
