New parametric flood insurance launched in Lagos

The Insurance Development Forum (IDF) has successfully completed the design of a parametric flood insurance solution for the State Government of Lagos, Nigeria.

The initiative was launched in partnership with the United Nations Development Programme (UNDP) and the German Federal Ministry for Economic Cooperation and Development (BMZ) through the InsuResilience Solutions Fund (ISF), as part of a tripartite agreement.

The new product was developed in partnership with a team of IDF member companies, including AXA Climate, Swiss Re, AXA Mansard, JBA Risk Management, ICEYE and African Risk Capacity (ARC).

Parametric insurance covers up to 4 million people at risk of flooding. Policyholders can benefit from rapid compensation of up to 7.5 million USD in the event of a predefined loss, based on satellite data.