Online Reporter
Michael Tome
Business Reporter
INSURANCE companies should embrace artificial intelligence (AI) and advanced technologies to forecast extreme weather events, improve risk management and develop innovative products that support climate adaptation.
Zimnat General Insurance chief executive officer Mrs Hazel Nyamuba said this at the School of Business and Management Sciences (SBMS) breakfast meeting held last week.
The call comes amid growing concerns over the impact of climate change, with Zimbabwe and the world at large facing increased exposure to weather-related risks, including droughts and floods that continue to affect agriculture, businesses and households.
The Government has already warned of the possibility of a severe El Niño weather phenomenon during the 2026/2027 agricultural season, highlighting the urgent need for proactive risk mitigation strategies. Speaking on the role of insurance in climate resilience and sustainable development, Mrs Nyamuba said insurers should move away from a reactive approach of only paying claims after disasters occur and instead use technology to predict risks and help clients prepare in advance. The increasing frequency and severity of climate-related events have put significant pressure on insurance markets globally.
The 2023/2024 El Niño season resulted in substantial economic losses, estimated at US$463 million over the period, underscoring the financial impact of climate shocks.
Mrs Nyamuba said insurers, working together with technology partners and research institutions, should develop climate insurance solutions in which payouts are prompted by measurable weather conditions, such as rainfall levels, rather than waiting for traditional claims processes after losses occur.
“We should not wait for disasters to happen and then pay claims. As risk advisers and insurers, we need to develop solutions that allow us to mitigate these risks before they occur,” she said.
“We need to develop technologies that allow us to mitigate these risks. Climate insurance can provide solutions where the trigger is based on whether there is rainfall or no rainfall, and on other measurable weather indicators.”
To accelerate innovation, stakeholders have partnered with the Harare Institute of Technology (HIT) to develop technology-driven solutions aimed at improving climate risk management and supporting vulnerable
sectors.
AI, satellite technology and data analytics are expected to play a critical role in predicting weather patterns, mapping vulnerable areas and enabling faster responses to climate-related disasters. Mrs Nyamuba cited examples from other markets, including South Africa, where insurers have used technology to improve disaster response.
Following floods in KwaZulu-Natal, insurers used satellite data and location-based technology to identify affected areas and support clients.
“In some cases, technology was used to determine exactly where flooding occurred and connect that information with insurance clients. Before some clients even lodged claims, payments had already been processed into their bank accounts,” she said.
Such innovations demonstrate the potential for Zimbabwe’s insurance sector to adopt similar approaches and create faster, more efficient climate risk solutions. Beyond compensation, insurers are also being encouraged to support productivity and resilience during favourable seasons by helping businesses and farmers improve yields and reduce future vulnerability.
“The role of insurance should not only be to pay claims when something goes wrong. In good years, we should help clients increase productivity and build resilience, thereby contribute to national economic development,” she said. As climate change continues to reshape economic risks, the insurance sector is expected to become a key partner in helping businesses, farmers and communities adapt through data-driven solutions, sustainable practices and innovative financial products.
The meeting urged Zimbabwean businesses to strengthen their resilience and adaptability as they navigate a rapidly changing global environment shaped by geopolitical tensions, economic uncertainty, technological disruption and climate-related challenges.
The call comes as businesses continue to operate in an increasingly complex environment where global developments are having a direct impact on local markets, supply chains, investment flows and operating costs.
The rapid advancement of technology was highlighted as both a challenge and an opportunity for Zimbabwean companies, with businesses encouraged to embrace digital transformation, automation and data-driven decision-making. AI, in particular, is expected to play a growing role in improving efficiency, forecasting risks and creating new business opportunities across sectors.
Senior consultant and head of corporate and risk advisory services at Intellego Investment Consultants Mr Owen Namusi said geopolitical shifts, including changing global trade patterns and supply chain disruptions, have created new risks for businesses, requiring companies to diversify markets, strengthen local value chains and improve operational efficiency.
He said building resilience requires collaboration between the Government, the private sector, financial institutions and development partners to create an environment that supports investment, innovation and economic growth.
“Businesses must move beyond survival strategies and focus on building long-term capacity to withstand shocks while identifying opportunities presented by global changes,” said Mr Namusi.
The chairperson of the Forensic Accounting and Auditing Department at HIT, Mr David Chisunga, said solid board oversight, ethical leadership and transparency are critical in enabling businesses to anticipate and manage emerging risks in an increasingly complex global environment.
“Boards must strengthen governance systems through continuous monitoring, research and strategic analysis to identify geopolitical threats early and develop effective mitigation measures,” he said.
“Strong board oversight, ethical leadership and transparency are essential in helping businesses anticipate and manage emerging risks in today’s complex global environment.”
As global economic dynamics continue to evolve, Zimbabwe’s private sector is expected to play a critical role in driving economic transformation by embracing innovation, strengthening competitiveness and developing sustainable business models.
