African insurers have linked an estimated US$52 billion of assets under management to environmental, social and governance (ESG) targets, according to a new report published by the Nairobi Declaration on Sustainable Insurance (NDSI).
The figure is based on a survey of NDSI members and is one of the key findings of its Current State Report 2025. The report provides what the NDSI describes as the first comprehensive baseline of sustainable insurance efforts across Africa.
The NDSI is a network of insurers, reinsurers, and ecosystem actors operating across 38 countries. According to the report, surveyed members collectively manage about US$342bn in assets, of which ESG-linked assets account for just over 15%.
The NDSI is supported by FSD Africa, a development agency that promotes financial inclusion and market development across sub-Saharan Africa.
The findings were released at the Africa Sustainable Insurance Summit II, held in Cape Town from 4 to 6 February. The summit was hosted by the NDSI and the South African Insurance Association in collaboration with the African Insurance Organisation.
According to the report, 53% of surveyed NDSI members have begun integrating ESG considerations into investment decision-making. A further 55% reported integrating ESG considerations into product development, including through pricing strategies.
The report also finds that 45% of respondents do not yet consider ESG factors, which it describes as a significant opportunity to scale inclusive and climate-smart insurance products.
In underwriting portfolios, ESG-linked business represents an average of 6.4%, a proportion the report notes is largely led by reinsurers. Only 5.6% of portfolios were reported to target vulnerable groups such as low-income households.
At governance level, the report finds that just 4% of NDSI members have embedded ESG considerations into board decision-making. Almost half of respondents (48%) reported that they have trained fewer than five staff members in sustainability.
The report highlights what it describes as pressing needs around climate risk and disaster response. It notes that Africa recorded more than US$14bn in natural catastrophe losses in 2022, while 97% of farmers in sub-Saharan Africa remain uninsured.
Within surveyed portfolios, the report estimates that about US$1.2bn has been allocated to environmental risks, while US$2.9bn is targeted at low-income and vulnerable populations.
Examples cited in the report are a flood insurance product launched by Britam in Tana River County, Kenya, and climate-smart livestock insurance offered by Zep-Re, which bundles reinsurance with financial services for pastoralists in the Horn of Africa. The report also refers to the rollout of microinsurance products for informal workers by multiple insurers.
Structural challenges and next steps
The report identifies fragmentation and regulatory framework inconsistencies as major challenges to scaling sustainable insurance across the continent. It also notes that Francophone and Lusophone markets remain underrepresented in sustainability-related discussions.
Building on the report’s findings, the summit focused on embedding ESG principles into the core business of insurers and risk managers and on building a community of practice across the sector.
Summit highlights included the launch of the NDSI Academy, a hybrid training platform intended to provide hands-on support for embedding sustainability into underwriting, product development, investment, and regulation.
Philip Lopokoiyit, the chairperson of the NDSI, said the theme of the 2026 summit – “Powering pledge into practice: integration of sustainability in African insurance” – builds on the momentum of discussions and actions from the previous year. He said NDSI members are seeing progress in areas including the development of climate-smart and inclusive insurance products, stronger ESG governance, participation in technical assistance programmes, and deeper collaboration across value chains.
Kelvin Massingham, director for adaptation and resilience at FSD Africa, said the growth of the NDSI should be assessed not by membership alone but by action, including capital being redirected, products being redesigned, and resilience being built.
Jonathan Dixon, secretary-general of the International Association of Insurance Supervisors, said sustainable insurance is fundamental to building societal resilience, particularly in regions facing significant challenges. He said effective supervision is essential to enabling insurance markets to close protection gaps, advance financial inclusion, and address climate-related risks.
