By Patience Saghana
Insurance industry in the country is cashing in on the opportunities that climate change has availed the sector in terms of premium generation.

Climate change is a change in the statistical distribution of weather over periods of time that range from decades to millions of years.

It can be a change in the average weather or a change in the distribution of weather events around an average (for example, greater or fewer extreme weather events). Climate change may be limited to a specific region, or may occur across the whole Earth.

The nation’s insurance industry seems to have captured a goldmine in  climate change by exploring the various threats and challenges on the global economy of climate change.
Nigerian operators have seen the need to prepare for the unexpected by profiling these risks and creating attendant rates for them. As a result, insurers have resolved to constitute an industry think-tank on climate and environmental risk factors with a view to ensuring proper profiling and rating of the attendant risks.

They offered their readiness to work in tandem with relevant climate and environmental agencies for the development of the requisite capacity in the rating and underwriting of climate and environmental risks.

They also agreed on the need to explore the benefits of engaging in an articulated awareness campaign and public education on climate change risks, while emphasizing its role as a trusted adviser on the evolving risks.

The insurance companies and industry groups, in liaison with the relevant Law enforcement agencies should be involved and committed to social risks identification, management and control measures”.

Mr Olusola Ladipo-Ajayi, chairman, Nigerian Insurers Association said the industry cannot pretend not to align with the rest of the world to tackle issues of climate change because insurance is an international business.

Ladipo-Ajayi said even in the Nigerian environment, particularly the Niger Delta Region, there are issues of costal risk which requires adequate insurance. Like I said, insurance is an international business and if you refuse to provide covers on these risks, then the essence of insurance is defeated, the NIA Boss said. What the industry needs to do he said should be to make proper rating of these risks through thorough assessment and subsequently risk improvement.
On the huge claims paid by the BP over gulf oil spillage in the United States , Ladipo- Ajayi said the industry should look out for high reinsurance price in the next renewal season. He said this would definitely impact on the local market since insurance is an international business which is shared.

In recent usage, especially in the context of environmental policy, climate change usually refers to changes in modern climate. It may be qualified as anthropogenic climate change, more generally known as “global warming” or “anthropogenic global warming” (AGW).