Britam Towers. FILE PHOTO | NMG
By EDNA MWENDA
Britam Holdings in partnership with Swiss Re and Oxfam Kenya has launched a flood insurance product to cushion farmers living along the banks of the Tana River from losses coming as a result of heavy rains.
Floods have become frequent in Kenya due to climate change, with the Kenya Red Cross Society data showing over 3.4 million people have been affected between 2000 and 2018.
"We are thrilled to be launching this innovative new solution in Kenya in partnership with Britam," said Kudzai Bingepinge, Head P&C Solutions MEA (Middle East and Africa) at Swiss Re.
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Swiss Re will underwrite Britam’s insurance solution through reinsurance support while Oxfam is the initial premium financier.
“We decided to work with Britam to introduce this innovative solution. We hope the stakeholders lend their support, to replicate and scale up this innovative solution so that the most vulnerable households across the country can be protected against floods,” said David Abudho, Social Protection Strategist at Oxfam in Kenya
The index-based flood insurance was also jointly designed by AB Consultants, an independent market driver in the inclusive insurance space, and Risk Shield, an actuarial firm specialised in designing index-based insurance solutions.
Index-based flood insurance solutions will help those who live in areas with a high risk of flooding but may not have access to conventional property insurance products.
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The solution uses water level data to determine historical patterns of flooding along the Tana River through data modelling and satellite imagery to predetermine heavy rains thresholds.
“This innovative solution has been designed using long-term data on the rainfall and water levels in the Tana River as parameters to pay claims,” said Saurabh Sharma, Director of Emerging Consumers at Britam.
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