Last July was the second hottest month on record for the globe, and scientists say 2023 will be the hottest, which could herald the possible return of El Niño weather in 2024.
In Kenya, experts are urging caution. On 23 August 2023, a local publication quoted Kisumu County Climate Change Director Evans Gichana as saying, “Climate change portends a grim future for Kenya and is a wake-up call for all of us to take urgent action to mitigate the effects of climate change.”
To illustrate, some parts of Kenya have experienced severe droughts and the rest have suffered devastating floods.
With most climate-related disasters becoming regular occurrences, it is important to find an effective way to mitigate the risks, especially a solution that helps affected sectors bounce back.
The best way to do this is through climate risk insurance, which provides cover not only for the immediate aftermath of climate-related catastrophes, but also proactively for the financial burdens they impose in times of disaster, such as floods, droughts, earthquakes, and crop and livestock diseases.
Through climate risk insurance, providers work with policyholders to reduce the likelihood and severity of such events. Insurers do this by encouraging policyholders to invest in infrastructure and practices that are resilient to the effects of climate change.
For example, a company might be encouraged to build structures that can withstand stronger storms or install systems to manage higher water levels.
Another way was the launch of the Kenya Livestock Insurance Programme in 2015, which was implemented in six counties, including Turkana, Wajir, Marsabit, Isiolo, Mandera and Tana River.
In 2017 alone, the programme disbursed a total of Sh494 million to support affected pastoralists. These disbursements played an important role in enabling farmers to procure essential resources such as fodder, medicines and water for their livestock.
In addition, the review of the Crops Act in 2013 gave prominence to crop development, pest and disease control, climate resilience and the introduction of crop insurance, while the Livestock Policy, 2020 advocates for increased access to insurance.
This cover is important for farmers to mitigate the impact of threats and ensure the resilience and sustainability of farming practices and livelihoods.
As interest in climate change mitigation microinsurance products gains momentum, private insurance providers have found ways to enhance interaction between livestock owners and livestock experts to encourage their active participation in commercial livestock production.
It is clear that mitigating the effects of droughts and floods through climate risk insurance provides both emergency responses and long-term resilience building.
