Banking and insurance sector and climate change in sub-Saharan Africa: indirect risks prevention and management

Significant impacts of climate change on development sectors in Sub-Saharan Africa could transform this region into a context characterized by multiple indirect risks for banking and insurance sector services supply, demand and access. Deficiencies in the assessment and management of these indirect risks could intensify the difficulties of implementing banking and insurance sector resilience strategies. To be relevant and efficient, the management of the global challenge of banking and insurance sector resilience to climate change should thus integrate these indirect risks. In practice, this will require developing specific scientific tools for efficient integration of indirect risks linked to climate change impacts in the management and development of banking and insurance sector.The main result proposed in this article is the Badolo BankAssuranceClimRisques model. It is an innovative tool for designing indirect risks induced by the impacts of climate change for banking and insurance sector prevention and management plans. It uses the approach and methodological tools of the ClimResilience scientific framework to develop information families and risks prevention and management schemes for banking and insurance sector resilience plans to the indirect risks linked to climate change impacts. Specifically, the Badolo BankAssuranceClimRisques model distinguishes short-term, medium-term and long-term risks prevention and management objectives.In the context of sub-Saharan Africa, the Badolo BankAssuranceClimRisques model is a new scientific development for the relevance and efficiency of the banking and insurance sector resilience actions to indirect risks induced by the impacts of climate change.