Coverage against Flooding is Unveiled by Britam, Swiss Re, and Oxfam

A flood insurance product has been introduced by Britam Holdings in collaboration with Swiss Re and Oxfam Kenya to protect farmers who live along the Tana River’s banks from financial losses caused by torrential rain.

Climate change has increased the frequency of floods in Kenya; according to data from the Kenya Red Cross Society, more than 3.4 million people were impacted 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.

While Oxfam is the initial premium financier, Swiss Re will underwrite Britam’s insurance solution through reinsurance support.

“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 developed by Risk Shield, an actuarial company that specializes in designing index-based insurance solutions, and AB Consultants, an independent market leader in the inclusive insurance space.

Those who live in areas with a high risk of flooding but may not have access to traditional property insurance products will benefit from index-based flood insurance solutions.

Through data modelling and satellite imagery, the solution uses water level data to identify historical trends in flooding along the Tana River and establish heavy rain 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.