The municipalities of Kloto 1, Golfe 1, and Golfe 7 have officially signed an innovative insurance policy aimed at strengthening their resilience against flooding. This parametric insurance product, designed to provide rapid compensation in the event of extreme rainfall leading to flooding, represents a major step forward in climate risk management in Togo.
The insurance policy has been taken out with SUNU Assurances Togo, selected as the local insurer, while ARC Ltd. has been chosen as the reinsurer due to its recognised expertise in parametric insurance. This collaboration has been coordinated with the National Directorate of Insurance of Togo.
Fatou Acolatse, Managing Director of SUNU Assurances IARD Togo, stated:
SUNU is proud to support Togolese municipalities in this innovative project. As a local insurer, we leverage our expertise to enhance community resilience.
Anaïs Symenouh, representative of ARC Ltd., added:
This partnership with SUNU Assurances and the Togolese municipalities demonstrates our commitment to developing innovative and accessible solutions, tailored to local needs. By joining forces, we are laying the groundwork for an effective, proactive, and united response to disasters.
The implementation of the project has been overseen by the National Agency for Civil Protection (ANPC), which has also played a key role in developing contingency plans for each municipality. Meanwhile, the National Meteorological Agency (ANAMET) has ensured the installation of ten TAHMO weather stations in the municipalities, enabling precise rainfall measurements to activate the compensation mechanisms.
When a station records more than 100 millimeters in a day (the threshold varies according to the station), an insurance payment of 33 million FCFA will be made to the municipality, up to a limit of 100 million FCFA per year per municipality (approximately 150,000 euros).
The funds will be used to pump out water and provide aid to affected populations based on a predefined contingency plan.
Winny Dogbatse, Mayor of Kloto 1, remarked:
Our residents have already suffered the devastating consequences of flooding. This insurance gives us the means to act immediately to protect the most vulnerable.
Koamy Gbloekpo GOMADO, Minister of Planning and Territorial Development and Mayor of Golfe 1, stated:
This is a major breakthrough for our municipality. Thanks to this mechanism, we will have the resources to respond quickly and effectively in an independent manner.
Aimé Koffi DJIKOUNOU, Mayor of Golfe 7, added:
The establishment of this parametric insurance marks a turning point in our risk management strategy. We are now better prepared and can respond to floods with greater anticipation.
The coordination of local stakeholders has been led by the NGO PADIE. Emile Atigaku, Executive Director at PADIE, noted:
Co-designing the project with local authorities was central for the development of this risk transfer solution.
The project has been made possible through co-financing by the InsuResilience Solutions Fund (ISF) and premium subsidies from Humanity Insured. Each municipality contributes 20% of the total annual premium cost, ensuring the financial accessibility of the product.
Olga Mursajew, project representative from the InsuResilience Solutions Fund (ISF), commented:
The ISF is committed to developing innovative insurance solutions for vulnerable populations. This project in Togo proves that financial protection mechanisms can be designed at the local level.
Caroline Birch, project lead for Humanity Insured, added:
Our collaboration with national stakeholders has been highly instructive. It is a pleasure for Humanity Insured to contribute to the success of this project.
The technical structure of the insurnace product has been developed by AXA Climate. Eliot Pernet, project lead, stated:
We have demystified the insurance process by allowing each stakeholder to challenge our assumptions.
This project represents a significant step forward in protecting local communities against climate risks in Togo.
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