Parametric Flood Insurance For Togo – AXA Climate, the AXA Group’s specialized weather, climate, and parametric risk transfer unit, and broker Howden are collaborating to put into place a parametric flood insurance plan in Togo that would likely cover three cities and more than 700,000 residents.
The initiative, which will begin in three communities, has been approved to assist prearranged finance for disaster relief and solutions for cities in Togo to adapt to flooding.
The index-based flood insurance solution’s deployment is being co-funded by the InsuResilience Solutions Fund (ISF), which made the announcement last weekend at a COP28 event in Dubai.
It’s designed to enhance the financial capacity of the municipalities in Togo when a major flood disaster occurs, by activating a predefined contingency plan, to support disaster response and assist vulnerable affected populations.
“Climate risk insurance, particularly when part of comprehensive disaster risk management planning, is a decisive tool for supporting the resilience of vulnerable populations,” explained Dr. Annette Detken, Head of the InsuResilience Solutions Fund.
“As a committed climate insurer, the science of adaptation is really part of our DNA. We are honoured to help these cities be better prepared for future floods,” added Karina Whalley, Head of Public Sector at AXA Climate.
AXA Climate and Howden have worked with Togo-based non-Governmental organisation Pionniers en Action pour le Développement Intégré à l’Environnement (PADIE) to implement the solution.
“A series of workshops will be organized with municipal policymakers, technical experts and the community to identify precisely the priority adaptation measures and contingency actions that insurance payouts could finance,” explained Emile Atigaku, Executive Director of PADIE.
Howden is also going to provide co-financing of $100,000 to pay for insurance premiums for the first year of the scheme.
“We are pleased to accelerate the resilience of the three cities through this contribution,” Stuart Martin, the lead for parametric insurance in Howden’s risk and resilience department said.
“We are fortunate to have a strong relationship with the three cities, which will allow this project to be locally led and ambitious,” added Eliot Pernet, project lead at AXA Climate.