African Reinsurance Corporation (Africa Re), together with a consortium of insurers and development partners and the Lagos State Government, has launched the Lagos Flood Risk Insurance Policy, sub-Saharan Africa's first parametric flood insurance solution.
The initiative, launched on 29 April, represents a landmark in climate risk financing driven by African institutional leadership. This a major milestone for the Tripartite Agreement Programme – a public-private partnership between the United Nations Development Programme (UNDP), the Insurance Development Forum (IDF) and the German Federal Ministry for Economic Cooperation and Development (BMZ) through the InsuResilience Solutions Fund (ISF) and the Lagos State Government’s Office of Sustainable Development Goals – to build developing countries’ resilience to climate risk.
The Lagos Flood Risk Insurance Policy triggers automatic payouts when stipulated conditions like rainfall or flood intensity are met, giving communities and businesses rapid financial support without lengthy damage assessments.
The move aims to address worsening floods driven by urbanisation, poor drainage, and climate change, protecting an estimated 4m vulnerable residents across Lagos State.
Africa Re is a leading pan-African reinsurance institution established in 1976 by 36 African states, following a recommendation of the African Development Bank.