Not all insurance is created equal. Liaison RE is building a new model; one that aligns capital with climate action, social impact, and governance integrity. This is what ESG-powered reinsurance looks like in Africa.
By Ethical Business Reporter
In a world where climate disasters, geopolitical tensions, and economic volatility are reshaping the business landscape, the reinsurance industry finds itself at a defining crossroads. For Liaison RE, the reinsurance arm of the pan-African Liaison Group, the path forward is clear: sustainability must be baked into the core of how risks are priced, managed, and mitigated.
At a high-level industry forum convened recently in Nairobi, Liaison RE brought together insurers, regulators, and reinsurers to tackle a question that could shape the next decade of African risk management: What does ESG-aligned reinsurance actually look like—and can it drive both resilience and growth in East Africa?
ESG: From peripheral to pivotal
Once seen as a corporate social responsibility add-on, ESG – Environmental, Social, and Governance principles – is now emerging as a central strategic lens through which risk must be assessed.
“The risk landscape is shifting rapidly,” said Tom Mulwa, Managing Director of Liaison Group. “From climate-induced displacement to fragile global supply chains, these shocks are no longer outliers—they’re the new normal. At Liaison RE, we’ve embraced ESG as a core pillar of our reinsurance strategy.”
Mulwa emphasised that the company’s transformation is not just operational; it is philosophical. Liaison RE is increasingly tailoring its services to governments, SMEs, and corporates seeking solutions that not only respond to risk but also advance sustainable development.
“We’re focused on climate resilience, social impact coverage, and governance transparency. Our reinsurance structures are being redesigned to deliver not just security, but shared value,” he added.
The new metrics of risk
The reinsurance conversation is evolving from balance sheets to biodiversity, from traditional claims to climate adaptation. And the numbers support the urgency. According to regional industry data, climate-related insurance claims have jumped by over 5% in the last five years. Kenya, for instance, has witnessed a 15% increase in insurance uptake in climate-sensitive sectors like agriculture since 2020 alone.
This is not just about more insurance – it is about better insurance.
Bernard Katambala, Chief Underwriting Officer at Zep-Re, challenged the sector to rethink the purpose of reinsurance itself.
“We must move from reactive cover to proactive impact,” said Katambala. “That means embedding ESG into underwriting processes, product development, pricing, and claims. We need products that reduce risk – not just transfer it.”
This call for transformation comes at a time when reinsurers must demonstrate their relevance not only in financial markets but in building societal resilience.
Regulation meets innovation
For regulators like the Insurance Regulatory Authority (IRA), ESG integration is as much about sustainability as it is about soundness.
“Proper pricing practices are crucial. They ensure insurers remain solvent while also strengthening reinsurance frameworks,” said Godfrey Kiptum, Commissioner of Insurance and CEO of IRA. “When pricing reflects real, underlying risk, especially climate and governance risk, reinsurance becomes both a financial and a developmental tool.”
In an increasingly volatile world, the future of reinsurance lies in its ability to manage complexity and promote long-term sustainability, not just protect against short-term shocks.
Kenya’s rising role
Liaison RE is betting on Kenya becoming a continental hub for sustainable reinsurance innovation. With strong regulatory frameworks, rising demand for ESG-sensitive products, and a growing middle class, the country offers fertile ground for reimagining the role of reinsurance.
The company’s expanding presence across East and Central Africa, backed by a network of international broker partnerships, is helping shape this next frontier.
Kenya’s reinsurance market itself has been on an upward trajectory, with an average growth rate of 8.2% per annum over the last five years, driven by increased demand in infrastructure, agriculture, and health—sectors where climate and social risks are most acute.
“The next generation of reinsurance must do more than respond—it must reform,” said Mulwa. “We are here to co-create a future where insurance is not just a financial product, but a force for environmental and social good.”
Established in 1981, Liaison Group is a leading pan-African non-banking financial services provider with a rich legacy in risk management, pensions, healthcare administration, investment advisory, and trusts. Regulated across all key jurisdictions in the region, the Group is positioning itself at the nexus of finance, sustainability, and innovation.
