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| Insurer compansates flood victims |
Britam insurer has paid out claims totalling KSh 15 million to 300 vulnerable households in Kenya’s coastal county of Tana River. Property worth millions was destroyed, and thousands of people were displaced by floods. These payments were made under the Index-Based Flood Insurance (IBFI) policy, designed to protect small-scale farmers in flood-prone areas from the devastating effects of floods. The IBFI policy was launched in May 2023 in partnership with Swiss Re and Oxfam Kenya to protect farmers along the Tana River from losses caused by heavy rains. This product, named Britam Mafuriko, leverages rainfall and river water levels to predict flooding and its impact on communities. Success of Britam’s Flood Insurance Britam’s 2023 Sustainability Report highlighted the programme’s success, stating, “This innovative solution uses rainfall and river data for swift payouts, eliminating traditional claim assessments. The programme successfully insured 300 families, disbursing KSh 15 million in claims with 48-hour processing due to recent El Nino rains.” Alongside their flood insurance policy, Britam offers index-based livestock insurance, benefiting over 2,800 pastoralists in drought-prone counties by providing financial protection against the harsh effects of drought. Additionally, Britam’s index-based crop insurance covers over 7,500 smallholder farmers, safeguarding them from various weather-related risks and pest infestations, ensuring their crops and livelihoods are more secure. Flood-related insurance claims in Kenya Britam’s disclosures come amid industry challenges in settling claims tied to heavy rains and flooding. According to the Insurance Regulatory Authority (IRA), insurance firms have settled only 5% of claims for damaged farms, houses, industries, and office blocks. This amounts to KSh 147.3 million out of the KSh 3.1 billion in claims received. In December TUKO.co.ke reported that Small-scale farmers in Tana River county, who took flood insurance policies, received a compensation payout of KSh 14.1 million for losses resulting from the floods affecting the region.
