Climate Change Data

Environmental Metrics

ESG Focus Areas

• Education
• Environment
• Community Investment
• Employee Wellbeing
• Risk Awareness

Environmental Achievements

• CIC staff planted over 600 trees during Ushirika Celebrations.
• Staff participated in quarterly clean-ups.

Social Achievements

• CIC Foundation sponsored 67 high school students.
• Partnership with Kenya Society for the Blind to raise awareness about road safety for visually impaired.
• Partnership with Bible Translation and Literacy (BTL) to improve literacy skills.
• Participation in St Andrews Charity Golf challenge to support children's homes.
• Sponsorship of AKI medical camp reaching 1600 residents.

Governance Achievements

• Reviewed and enhanced Board and Committees’ Charter.
• Carried out Board remuneration review.
• Carried out independent assessment of Board performance.
• Conducted legal and compliance audit.
• Provided professional training to directors and senior management.

Climate Goals & Targets

Environmental Challenges

• Solvency challenges in the insurance industry (industry average 98%, minimum requirement 100%, target 200% by June 2020).
• Fraudulent claims affecting industry profitability.
• Slow growth of retained earnings due to IFRS 9 implementation.
• Poorly performing investment environment.
• Undercutting by competitors.

Mitigation Strategies

• Developed internal processes and invested in qualified manpower to improve underwriting and claims processes.
• Built a compliance culture and maintained open communication with regulators.
• Implemented Asset Liability Matching Framework.
• Enhanced credit management framework.
• Strengthened ICT environment and invested in data protection.
• Established a robust Business Continuity Plan (BCP) and Disaster Recovery Plan (DRP).
• Implemented a whistleblower policy.
• Adopted a strategy of reduced risk appetite and strict underwriting terms.
• Established motor assessment centre to reduce fraudulent claims.
• Aggressive debt collection.

Supply Chain Management

Responsible Procurement

• Procurement policy focused on best total value, fair competition, integrity, transparency, and fairness.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Third-party Assurance: EY

UN Sustainable Development Goals

• Goal 4 (Quality Education)

Sponsorship of high school students.

Awards & Recognition

• 2018 Group Life Company of the Year Award (AKI)
• Winner’s trophy for the FIRE Awards, Insurance category (2018)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Economic

Environmental Achievements

• Over 2000 trees planted in Ngong Forest and Ushirika Gardens.
• Annual savings of over Kshs. 2.5 Million on power consumption cost in HQ in 2022 compared to 2021 through energy saving initiatives.

Social Achievements

• CIC Foundation sponsored 88 high school students.
• Participated in over 1,500 Cooperatives Annual General Meetings (AGMs) and education days.
• Facilitated 26 regional trainings for cooperative members.
• Participated in a medical camp organized by Umoja Wendani Sacco.
• Offered training to over 1,000 school heads on CIC products.
• Donated foodstuff to Wote kwa Wote organization.
• Partnered with AAR to conduct first aid training for primary school teachers.
• Participated in a blood donation exercise.
• Engaged with Kenya Defence Forces (KDF) on personal financial planning, sponsored a recreation garden at Kahawa Garrison and donated a TV set to the Kenya Navy.

Governance Achievements

• Institutionalized a robust corporate governance framework.
• Reviewed various policies including stakeholder relations, directors’ training and dispute management.
• On-boarded new independent directors.
• Board underwent training on Corporate Governance, ESG, and industry trends.

Climate Goals & Targets

Environmental Challenges

• Challenging economic environment with GDP growth down to 4.7% in Q3’22 from 9.9% in Q3’21.
• High inflation rates.
• Weaker shilling against the USD.
• Tough macro conditions and foreign investor sell-offs in the equity market.
• Rising cost of claims due to inflation.

Mitigation Strategies

• Implemented various transformation initiatives focusing on customer experience, performance management, operational efficiency, digital transformation, research and innovation, cost competitiveness and debt management.
• Maximized investment income to cushion rising costs and guarantee claim payments.
• Diversified investment portfolio and embedded a portfolio rebalancing strategy.
• Robust Credit control policy and Investment Policy Strategy to minimize credit risk exposure.
• Business Continuity Plan and Disaster Recovery Plan to manage operational risks.
• Whistleblower policy and Code of Conduct to manage fraud risk.
• Prioritized regulatory compliance.

Supply Chain Management

Responsible Procurement

• Procurement policy focusing on best total value and mutually beneficial relationships with suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Integrated Reporting Council (IIRC) guidelines, International Financial Reporting Standards (IFRS)

Third-party Assurance: PricewaterhouseCoopers LLP (Kenya), PricewaterhouseCoopers (Uganda), Ernst & Young (Malawi)

Sustainable Products & Innovation

• CoopCare Health Insurance
• CIC Motoring Assist

Awards & Recognition

• 2nd Runners up - FIRE Awards Insurance Category (2022)
• Decade of Excellence Insurance Kenya Global Banking and Finance Awards (2021)
• Best General Insurance Company Kenya - International Business Magazine Awards (2021)
• Best Life Insurance Company Kenya International Business Magazine Awards (2021)
• Best Asset Management Company Kenya - International Business Magazine Awards (2021)
• AKI Awards: Overall Winner 2019 Group Life Company of the Year
• AKI Awards: CIC General - second runners, Insurance Motor Data System Award (2019)
• AKI Awards: Overall Winner 2017 Group Life Company of the Year
• Winner - AKI Group Life Company of the Year (2021)
• Winner - Medical Underwriter of the Year - Group medical - CIC General Insurance (2021)
• Overall Winner - Champion of Governance Award (2021)
• Winner - Company Secretary of the Year Award (2021)
• Best Company to Work for Deloitte (2016)
• CIC Life awarded Group Life Company of the Year - AKI (2016)
• Fire Award Winner Insurance Category (2018)

Environmental Metrics

ESG Focus Areas

• Economic Resilience
• Environmental Stewardship
• Social Responsibility
• Responsible Governance

Environmental Achievements

• Replaced normal taps with time-delay taps to reduce water consumption.
• Powered Ushirika gardens project solely by solar PV installation.
• Acquired a solar powered pump for water pumping.
• Replaced filters for air conditioners, water dispensers, and genset to lower energy consumption by 5% to 15%.
• Purchased laptops instead of desktop computers and used energy-efficient bulbs.
• Sponsored Kereita Forest Challenge, resulting in 750 seedlings planted.
• Participated in a tree planting exercise during Ushirika environmental day.

Social Achievements

• Launched Coop Care health insurance for Co-operative members.
• Launched Seniors Mediplan health insurance for senior citizens.
• Launched Abwenzi health insurance in Malawi for women and families in rural areas.
• Launched Kameeza funeral expense cover in Uganda.
• CIC Foundation sponsored 88 students through a secondary education program.
• Enhanced student personal accident cover for primary school children.
• Improved personal accident cover for Higher Education students.
• Supported Run for the Bibless literacy initiative.
• Participated in various charity golf activities (Women Corporate Directors Golf, Catholic Men Association Charity Golf, Cancer Awareness Charity Golf).
• Partnered with Aging Dignified Kenya.
• Organized a blood donation exercise during Ushirika Celebrations.
• Provided 40 trainings to co-operatives on various topics.
• Improved customer satisfaction index to 83% in Q4 2023 from 80%.

Governance Achievements

• Appointed a Sustainability Steering Committee.
• Developed sustainability governance tools and frameworks.
• Developed a sustainability integration roadmap.
• Nominated sustainability champions.
• Launched a sustainability workstream.
• Became a signatory to the United Nations Global Compact (UNGC) Network Kenya and the Nairobi Declaration on Sustainable Insurance (NDSI).

Climate Goals & Targets

Environmental Challenges

• Potential for misleading advertising in marketing.
• Risk of greenwashing.
• Risks associated with invasion of personal data.
• Affordability of premiums as a barrier for some community members.
• Coverage disparities in communities.
• Increased claims frequency and severity due to physical climate risks.
• Underwriting challenges in assessing climate-related risks.
• Asset risk management related to climate-sensitive assets.
• Risk of stranded assets due to investments not aligned with low-carbon economy.
• Regulatory changes and market shifts towards sustainable investments.
• Regulatory compliance with evolving climate regulations.
• Market dynamics and consumer behavior towards sustainable products.

Mitigation Strategies

• Established internal review processes to ensure accurate marketing materials.
• Avoid greenwashing by substantiating environmental claims.
• Complied with data protection laws and implemented stringent data privacy policies.
• Developed micro-insurance products at lower costs.
• Explored partnerships and subsidies to reduce insurance costs.
• Reviewed and updated product offerings to meet diverse community needs.
• Conducted regular market research to identify coverage gaps.
• Shifted towards sustainable and low-carbon investments.
• Developed new insurance products addressing climate risks (parametric insurance, green bonds insurance).
• Collaborated with stakeholders to influence climate policies and promote sustainable practices.
• Adjusted premiums and coverage limits to reflect evolving risk profiles.
• Maintained sufficient financial reserves to cover potential claims.
• Collaborated with reinsurance companies to share risks.
• Offered risk mitigation solutions and incentives to policyholders.
• Monitored weather forecasts and implemented proactive response strategies.
• Educated policyholders about climate-related risks and insurance coverage.

Supply Chain Management

Responsible Procurement

• ESG rating of business relations

Climate-Related Risks & Opportunities

Physical Risks

• Increased claims due to extreme weather events
• Floods and heatwaves increasing medical insurance claims

Transition Risks

• Pricing and underwriting challenges
• Reinsurance considerations
• Loss of business
• Regulatory and legal changes
• Market and reputational risks
• Increased operational costs
• Litigation and legal risks

Opportunities

• New products and services
• Risk modelling and analytics
• Adaptation and mitigation support
• Collaborations and partnerships
• Education and awareness
• Alternative investments
• Adapting to regulatory changes
• Resilience planning, consulting and risk management services
• Data technology and investments

Reporting Standards

Frameworks Used: GRI Standards (2021)

Sustainable Products & Innovation

• Coop Care
• Seniors Mediplan
• Abwenzi
• Kameeza