Botswana: Botswana Life Insurance announced the significant insurance for the victims of the Velf fires. While hosting a groundbreaking symposium, the company said that its penetration level currently stands at a mere 3%
Velf fires are increasing in Botswana, and people are suffering as they are losing their properties, and it’s a heavy loss for them. But, Botswana Life Insurance recently hosted a groundbreaking insurance symposium under the theme “Understanding and Addressing the Insurance Protection Gap.”
Veld fires are a common problem in the dry season, but of late, there has been an increase in the frequency and extent of loss of grazing pasture due to veld fires. The winds and the extremely dry grass acted as a catalyst and fuel.
During the event, the CEO of NBFIRA highlighted that our insurance penetration level currently stands at a mere 3%. This low level can be attributed to various factors, including affordability and lack of awareness. However, I strongly believe that the most significant reason for this is the apathy resulting from a lack of financial inclusion.
I have previously emphasized the adverse effects of financial exclusion, particularly the lack of insurance awareness, on Botswana’s progress towards achieving Sustainable Development Goal number 8. Without adequate coverage, passing on generational wealth or creating any at all becomes challenging. Beyond being a mere product, insurance serves as a risk mitigation measure that can ensure economic sustainability and development.
Valentine Ojumah, a board advisor at Sanlam Nigeria, suggested some key pointers to address this issue, such as enforcing insurance, particularly for motor and household/property coverage. This brings to mind the recent wild fires and the potential impact they may have on GDP through the reduction of beef exports and food production in general. It becomes evident that insurance is crucial not only for compensation but also for ensuring food security and economic stability.
Wildfires usually start in Botswana between April and June, but they are not as intense as fires experienced in the late season from August to October. This is because, in the late season, fires occur when the vegetation is dry and are uncontrollable due to heat and strong winds.
