Speaking to actuarial students from the Strathmore Institute of Mathematical Sciences, Das challenged the profession to embrace its role in bridging the global insurance protection gap, which hit an alarming USD 1.8 trillion in 2023.
In her lecture titled “Sustainable Insurance: Can Actuaries Lead the Way?”, Das painted a vivid picture of a world teetering on the edge of climate catastrophe. Natural disasters are becoming more frequent and devastating, yet the insurance industry is struggling to keep up. The protection gap, defined as the difference between insured and total economic losses, continues to widen, leaving communities vulnerable and economies at risk. However, according to Das, actuaries are uniquely positioned to turn the tide.
“Actuaries possess a vast toolkit,” Das emphasized, highlighting innovations such as index insurance and the potential of public-private partnerships (PPPs). “With their ability to quantify and interpret both financial and non-financial metrics, actuaries can make the case for sustainable insurance and mobilize capital.” Her words resonated deeply, as she urged students to see beyond traditional actuarial roles and envision themselves as agents of change in the Environmental, Social, and Governance (ESG) space.
Das defined sustainable insurance as an approach that integrates ESG considerations into every aspect of the insurance value chain. She argued that actuaries, with their expertise in risk assessment and mitigation, are crucial in developing solutions that not only protect against losses but also contribute to achieving the Sustainable Development Goals (SDGs).
However, Das was quick to caution against a siloed approach. “Actuaries cannot operate in a vacuum,” she stated firmly. “To bridge the insurance protection gap, collaboration is vital. We need to engage with governments, NGOs, and the private sector to develop innovative, inclusive insurance solutions.”
As a seasoned volunteer and leader in the actuarial profession, Das has long been an advocate for financial inclusion. Her passion for driving social impact was palpable, inspiring the next generation of actuaries at Strathmore University to take up the mantle and lead the charge in sustainable insurance.
Article written by Stephen Wakhu
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