Climate Changes Effects and Insurance

By Joseph Kamiri;

Human activities in the world have precipitated various changes in the global climate.This has meant that the world has become warmer and warmer with each passing decade.

Due to this, climate change has become adverse in that we are experiencing changes in the weather conditions in all continents of the world.
For instance, in the African continent, there have been constant droughts which has resulted in the death of human life, livestock, wildlife and destruction of vegetation cover including crops.When there is rain, it has resulted in floods thereby destroying the infrastructure and economic livelihoods of many individuals. Other regions have suffered because frequent hailstorms, flooding, frost damages and landslides.

These drastic changes in weather also have brought about emergence of diseases and pests attacks in some regions Insurance and climate change Insurance ensures that an individual is able to cover his or her property in the event of adverse weather conditions thereby safeguarding their economic livelihoods.The other advantage of using insurance is that a product can be tailored according to the customers’ requirements or needs. This approach is particularly common with major brands who use customer feedback to either develop new or improve existing products. In doing this, insurers make it easier for people to understand the value of insurance, which supports the uptake of available options.

Effects of climate change are apparent in the agriculture sector.Experts say that agriculture is among the sectors worst affected by climate change. Excess rainfall, dried rivers, warmer temperatures and drought are among the factors affecting the yield produced in farms. On the other hand the loss of livestock due to lack of pasture means poor income for the farmers, which consequently lowers their purchasing power and their economic ability to meet daily costs. These effects are pushing communities into financial dependency and poverty.

Using insurance to cover the risks associated with climate change gives comfort especially to farmers. Although insurance cannot single-handedly address the effects of climate change, it has a big role in helping people recover from the adverse effects’ climate change.Insurance offers financial compensation, which empowers the farmer economically to continue his work with minimal interruption.

A farmer is therefore able to invest more into agriculture, livestock keeping, and accumulate assets since the risk of losing the investment has been shouldered by acquiring an insurance cover.
Misconceptions;
There has also been misconceptions about procuring an insurance cover.Most individuals assume that insurance is very expensive and out of reach to the common man. Some people assume that insurance is fashioned to suit big companies who are out to protect their assets.This is not the case as individuals can also be able to purchase an insurance cover for their property or livestock, be it one cattle as a source of livelihood. There is also a myth that natural disasters, floodings, drought or calamities only take place at the end of a decade or a millennium.

This is not the case as natural disasters normally do not have a specific timeline on when or how it will happen.They are acts of nature and individuals are unable to know the day and time this will take place.Research has however been used to predict climatic patterns like in
Kenya where a drought is recorded every three to four years.

In conclusion
Normally, individuals realize the importance of insurance when it is too late and the disaster has struck closer home. In order to avoid such instances, it is prudent to take measures individually, as a group, or corporate to be able to avert possible loss of income and property due to natural calamities.An important fact is to plan for a good insurance cover to avoid instances where natural calamities affect your capacity to bounce back into becoming financially secure. CIC is an insurance company with a wide range of insurance solutions, tailored for different customer groups. They include insurance options for large and small-scale farmers as well as individuals seeking to protect their farming
activities,family and property.

Seeking more information is a crucial part in deciding the insurance cover to purchase. In the case of CIC, the website, social media channels and 25 branches are good channels to access this information.