07 L EADERS I N BUS I NESS , NURTUR I NG AFR I CAN TAL ENT AND I NNOVAT I ON LEADERS IN BUSINESS, NURTURING AFRICAN TALENT AND INNOVATION Our score was calculated following an independent audit, which found that we improved from low risk last year at 10.2 to negligible risk this year at 5.7. We retained our leadership position in the diversified insurance sector with the lowest exposure among our peers (24.0) and the strongest management score (80.3). We also scored negligible risk ratings in terms of data privacy and security, corporate governance, human capital, business ethics and ESG integration. The insurance industry has a critical role and responsibility to drive sustainable business practices on the continent, and to this end, we continue to advocate for more signatories to the Nairobi Declaration, which supports the attainment of the UN Sustainable Development Goals. Our credit rating, meanwhile, remains strong. Mid-year, US credit rating agency Fitch upgraded our outlook to stable, giving us an IFS Rating of ‘A-’ and a Long-Term Issuer Default Rating (IDR) of ‘BBB+’. We were awarded the upgrade due to our progress in our development goals, product diversification into flood risk and outbreaks and epidemics, and the strong support of our donors. Fitch also noted our excellent claims payout track record and “extremely strong” capital position. Nurturing future climate leaders We launched our first-ever postgraduate Africa Scholarship Programme in February 2023, exclusively for African students and in partnership with Milliman Inc., a risk management, benefits, and technology company. It is aimed at broadening the talent pool in Africa, particularly in studies relating to mitigating the impact of climate change At the beginning of 2023, Sustainalytics, a renowned international authority in ESG research and evaluation, awarded us the global insurance industry’s top environmental, social and governance (ESG) scores. on African economies. We are also assisting students who need help to afford postgraduate studies and encouraging entrants into these specialised fields. The programme offered four scholarships covering up to three years of full-time postgraduate study at select universities on the continent, and our scholarship winners will begin their new journeys in 2024. This initiative is not a once-off; we look forward to selecting the next batch of future climate leaders next year. Innovating for growth and impact This year, we became the first insurer to pioneer flood risk coverage for Africa, co-developing a cutting-edge model with JBA Risk Management. Following successful pilots, we launched customised flood risk policies for six countries—Madagascar, Mozambique, Malawi, Côte d’Ivoire, Ghana, and Togo. By understanding each country’s risk exposures, we empower these governments to anticipate and manage floods, directing rapid response where it’s needed most. In Malawi, we co-designed a novel insurance mechanism to reinforce the government’s flagship social safety net programme, which protects drought-vulnerable communities. This shock-responsive policy is triggered when rainfall levels predict drought, releasing funds for cash transfers to assist additional beneficiaries. These innovations showcase our commitment to building climate resilience through flexible, localised solutions and product diversification, and we will continue adapting our product portfolio to fulfil the spectrum of our member states’ climate needs.
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