African countries and communities are inadequately insured against climate risk. Insurance penetration is less than 2% of GDP  and 90% of natural catastrophe losses were uninsured in Africa in 2018  leaving a large risk protection gap. The cost of reinsurance in Africa's most mature insurance market-South Africa- has increased since 2017 due to climate-related payouts , which is expected to further reduce the extent of insurance coverage. Emerging trends that seek to address this gap include innovative weather and drought index-based insurance schemes to transfer risk, forward-looking climate data and models to manage risk and insurers transitioning from risk transfer providers to proactive risk managers.
IPCC
Climate Change 2022: Impacts, Adaptation and Vulnerability
IPCC Report