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Climate change to affect insurance business - Maguwu

by Staff Reporter
10 Dec 2018 at 14:10hrs | Views
The gradual increase in global temperatures and other climate change associated hazards will affect insurance business if the phenomena continues unmitigated, Farai Maguwu has said.

Addressing a Climate Change Symposium at a Harare hotel recently, Maguwu who is Centre for Natural Resource Governance Director said the phenomena will affect business activities and as a result, even insurance companies will struggle to keep pace with climate related disasters.

It turned out at the symposium that on small scale farmers, floods have the effects of crop damage, damage to infrastructure, increase in human and livestock diseases, soil erosion, disruption of human movement and increase in water borne diseases.

Said Maguwu; "the world will experience extreme weather events such as floods, droughts and hailstorms which will lead to losses in agricultural production, the destruction of processing and transport infrastructures, and the deterioration of export earnings.

"Due to Climate Change as well, Government will spend more resources responding to related eventualities and emergencies."

He cited an example of Tokwe Mukosi floods costs which cost more than $5.6 million in victims' compensation.

He recommended that government and the financial services industry develops new and flexible financial products to support climate-resilient and inclusive agro-value chains through capacity building and innovative public-private partnerships.

At government level, he said each ministry and government department must include climate risk in their management plans while Rural District and Urban Councils should have climate risk officials who advise Councils on Climate Change mitigation and adaptation.

According to NASA, the planet's average surface temperature has risen about 1.62 degrees since the late 19th century and the change is driven largely by increased carbon dioxide and other human-made emissions into the atmosphere.

Most of the warming occurred in the past 35 years, with the five warmest years on record taking place since 2010 with 2016  being the warmest year on record.

Source - Byo24News