Insurance24
Vic Falls : The growing threat of climate change, emerging health risks and economic uncertainty is exposing the limitations of traditional insurance models, placing pressure on companies to rethink their corporate governance and risk management approaches to remain resilient in an increasingly unpredictable business environment.
In a presentation at the Southern Africa Insurance Indaba 2026 in Victoria Falls, Lydia Tanyanyiwa , Group CEO Minerva Risk Advisors examined how corporate governance frameworks must evolve to address emerging risks threatening the sustainability of the insurance sector.
Under the theme Governance Crossfire: The 10-Year Ceiling – Boardroom Succession, Director Independence and Conflicts of Interest under the IPEC Corporate Governance Framework, the discussion broadened the traditional understanding of corporate governance, highlighting the need for insurers to integrate emerging risks into their strategic decisions rather than treating governance as merely a regulatory compliance exercise.
Tanyanyiwa challenged insurance practitioners to reconsider whether existing governance and risk management practices were sufficiently responsive to the changing operating environment, particularly as climate-related disasters and emerging health challenges create new demands on insurance products and services.
She noted that the evolution of corporate governance globally had expanded beyond protecting shareholders and ensuring financial accountability to include broader responsibilities towards society, the environment and sustainable business practices.
This shift has significant implications for insurers, whose ability to assess, price and manage risks is increasingly being tested by environmental and economic changes.
Climate change, in particular, is emerging as a major concern for the industry, with increasingly unpredictable weather patterns and extreme events creating substantial financial exposure for businesses, households and agricultural communities.
Tanyanyiwa questioned whether insurers were adequately adjusting their traditional policies to respond to these changing risk patterns, arguing that the industry needed to move away from comfortable, conventional approaches to risk assessment.
She pointed to the impact of climate-related disasters, including flooding and the financial burden placed on affected communities and economies.
Her presentation highlighted the importance of developing insurance solutions that respond to emerging exposures, particularly in markets where insurance penetration remains relatively low and many households and businesses struggle to recover from unexpected losses.
Under the Insurance and Pensions Commission (IPEC) Risk Management and Corporate Governance Guidelines, amended through Statutory Instrument 44 of 2026, insurers are expected to strengthen enterprise risk management and integrate risk considerations into their overall business strategies.
The framework requires insurance companies to maintain documented policies covering key areas such as underwriting, reinsurance, investment, liquidity, asset-liability management, operational risk and business continuity.
It also requires insurers to conduct annual Own Risk and Solvency Assessments (ORSA) and submit reports to IPEC, linking their internal risk profiles and stress-testing outcomes to business plans and capital requirements.
These requirements are particularly important as emerging risks become more complex and interconnected, potentially affecting insurers’ financial positions, operational resilience and ability to meet policyholder obligations.
The amended framework further strengthens institutional accountability through mandatory risk management, compliance, internal audit and actuarial control functions.
The discussion also highlighted the importance of ensuring that corporate governance keeps pace with developments in sustainability and environmental responsibility.
