LAGOS LAUNCHES FLOOD RISK INSURANCE POLICY TO PROTECT VULNERABLE COMMUNITIES
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By ‘Sefiu Ajape
The Lagos State Government has launched its groundbreaking Flood Risk Insurance Policy aimed at protecting vulnerable residents across flood-prone communities in the state.
The event, currently ongoing at the Idera Conference and Events Centre, Radisson Blu, Victoria Island, is being led by the Office of Sustainable Development Goals (SDGs) in partnership with the Ministry of Finance.
The initiative targets seven high-risk Local Government Areas (LGAs)—Ajeromi Ifelodun, Alimosho, Amuwo-Odofin, Apapa, Kosofe, Ojo, and Somolu—where residents are most exposed to recurrent flooding.
Lagos, a low-lying coastal city with an average elevation of about 1.5 metres above sea level, continues to face increasing flood risks due to land subsidence, estimated at up to 87 millimetres annually, and persistent drainage challenges linked to waste-clogged systems.
Flooding during the state’s peak rainy season between April and July has led to significant economic losses, estimated at up to $4 billion yearly.
The insurance scheme, developed by the United Nations Development Programme and the Insurance Development Forum with support from the German Federal Ministry for Economic Cooperation and Development, is designed to enhance financial resilience among vulnerable populations.
About four million residents are expected to benefit from the scheme, which uses a parametric insurance model to enable rapid payouts when flooding reaches a defined threshold.
A flood footprint index has been adopted as the trigger mechanism, with payouts activated when flood depths reach 50 centimetres.
The product has been approved by the National Insurance Commission and is underwritten by AXA Mansard, Leadway Assurance, Cornerstone Insurance, and Lagos State Assurance Company, with reinsurance backing from Africa Re.
The Lagos State Government has also committed to incremental premium payments over the next three years to sustain the initiative, which has been integrated into the state’s disaster management system.
More details later…
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