Sustainable insurance: The dilemma of Small and Medium Enterprises (SMEs) in Africa

Sustainability is vital for the insurance industry, particularly in Africa, where SMEs face challenges such as limited awareness, high costs, and a lack of sustainable insurance products.

Sustainable insurance incorporates Environmental, Social, and Governance (ESG) considerations, offering protection while promoting long-term sustainability.

African SMEs, especially in agriculture, benefit from climate risk and renewable energy insurance but struggle with regulatory gaps and product availability.

Solutions include raising awareness, creating affordable products like parametric insurance, and fostering public-private partnerships.

Integrating sustainability enhances resilience, reduces losses, and supports economic growth, particularly for SMEs in vulnerable sectors like energy and agriculture.