Britam, Swiss Re pay out Sh14m in flood insurance claims

Some 300 households affected by floods in Madogo Ward, Tana River County have received Sh14.1million from insurers Britam and Swiss Re as compensation for losses incurred.

The claims were paid under the Index-Based Flood Insurance (IBFI) policy designed to cushion small-scale farmers residing in flood-prone areas from the catastrophic effects of floods.

Britam in partnership with Swiss Re and Oxfam Kenya in May this year launched the flood insurance product targeting farmers living along the banks of the flood-prone river.

Other players in the partnership include Risk Shield and Arid Lands Development Focus, which is Oxfam’s implementing partner in Upper Tana.

Under this arrangement, Swiss Re underwrites Britam’s insurance solution through reinsurance support while Oxfam is the initial premium financier.

Two parameters –rainfall and river water levels— are used to predict flooding and its impact on communities.

“We measure rainfall using satellite data, and within two days we can determine whether a rainfall will trigger flooding or not. The Tana River water level is measured using automated water gauges with data being available hourly within a day of the incident,” Britam Director for Emerging Market Consumers, Saurabh Sharma said.

Under the partnership, Oxfam funds the Sh7,000 per year premiums for each of the 300 vulnerable households in Upper Tana. It also facilitates payment to the households.

Risk Shield, for its part, analyses the river level and satellite data and determines the amount of compensation to be paid. Swiss Re reviews and approves the determined payout, which paves the way for Britain to release compensation to Oxfam, the master policyholder.

“This claim payout demonstrates that insurance can be an effective approach to transforming disaster response in the region,” said David Abudho, Social Protection Strategist at Oxfam in Kenya.

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