Britam, Partners Introduce Cover Against Flooding

Britam, Swiss Re, and Oxfam have joined forces to expand flood insurance coverage for 20,000 families in Tana River County.

This marks a significant increase in the number of households covered under the Index-Based Flood Insurance (IBFI) policy, with 300 households in Madogo Ward currently covered under the policy.

The Memorandum of Understanding (MoU) signed between Britam and the county government aims to increase awareness and enrollment in the IBFI program, designed to safeguard and enhance the resilience of communities against the impact of floods.

The initiative follows a successful exercise in Madogo Ward, where 300 households received Sh14.1 million in compensation for flood-related losses in Upper Tana.

The claim was paid under the IBFI policy, designed to cushion small-scale farmers residing in flood-prone areas from the catastrophic effects of floods.

The Governor of Tana River County, Dhadho Gaddae Godhana, expressed optimism about the collaboration, saying that the results were evident following last December's payout to individuals and families that lost their livelihoods to floods.

"This MoU marks a crucial step towards building resilience and ensuring that our people have access to much-needed protection against the unpredictable nature of floods," said Major Godhana.

Britam's Group Managing Director, Tom Gitogo, reinstated the importance of the partnership with the county in delivering on the company's social impact goals.

He observed that the collaboration underscores Britam's commitment to leveraging insurance as a tool for social good.

"By expanding the reach of our flood insurance product, we aim to be a catalyst in the economic transformation of the Tana River region, enabling families to focus on improving their lives without worrying about potential loss caused by floods," said Gitogo.

Britam's Director of Emerging Consumers, Mr. Saurabh Sharma, noted that partnering with Oxfam demonstrated that insurance could protect communities against adverse weather events by paying a quick claim payout.

"We will be aiming to scale up the program to cover the entire population that is vulnerable to flood risk now that we have the support of the county government," she said.

IBFI was launched in May 2023 and partners with Risk Shield and Arid Lands Development Focus (ALDEF), which is Oxfam's implementing partner in Upper Tana.

IBFI was developed using data modeling and satellite imagery to predetermine flood thresholds and provide coverage at an affordable cost.

It was noted that floods will become a frequent problem in Kenya due to climate change.

The partnership underscores the role of public-private collaboration in addressing climate-related challenges and fostering community resilience.