A new parametric flood solution has been launched to protect the people of Togo in an effort to enhance the west African nation’s fight against the impact of climate change.

The Kloto 1, Golfe 1 and Golfe 7 communes have officially signed a pioneering insurance policy aimed at reinforcing their resilience against flooding. The parametric insurance project, designed to provide rapid compensation in case of extreme rainfall, marks a significant step forward in climate risk management in Togo.

It has been described as a “groundbreaking mechanism” and was conceived in collaboration with AXA Climate, a specialist in parametric insurance and climate change adaptation solutions.

The insurance package was underwritten by SUNU Assurances Togo, selected as a local insurer, while ARC was chosen as reinsurer thanks to its recognised expertise in parametric insurance. This collaboration was carried out in coordination with the Direction Nationale des Assurances du Togo.

Fatou Acolatse, Managing Director of SUNU Assurances IARD Togo explained: “SUNU is proud to support the Togolese communes in this innovative project. As a local insurer, we put our expertise at the service of people’s resilience.”

The implementation of the project was supervised by the Agence Nationale de la Protection Civile (ANPC), which also played a key role in the elaboration of contingency plans for each township. The Agence Nationale de la Météorologie (ANAMET), meanwhile, ensured the installation of ten TAHMO weather stations in the communes, enabling precise measurement of rainfall to activate the compensation mechanisms. Each weather station will be able to trigger up to 50 million CFA francs when it measures a given rainfall threshold over the course of a day. The funds will be used to pump water and help the victims.

Anaïs Symenouh, spokesperson of ARC added: “This partnership with SUNU Assurances and the Togolese communes exemplifies our commitment to developing innovative and accessible solutions, closely aligned with the needs of local communities. By joining forces, we are laying the foundations for a proactive and supportive response to disasters.”

Funding for the project was made possible by co-financing from the InsuResilience Solutions Fund (ISF) and a premium subsidy from Humanity Insured. Each municipality contributes up to 20% of the total cost of the annual premium, guaranteeing the affordability of the product.

Olga Mursajew, InsuResilience Solutions Fund (ISF) representative in charge of the project said: “ISF is committed to developing innovative insurance solutions for vulnerable populations. This project in Togo demonstrates that it is possible to design financial protection mechanisms at the local level.”

The insurance is designed to trigger one payout per station. The technical structure of the insurance product was designed by AXA Climate. Eliot Pernet, AXA’s project manager said: “This project shows that parametric insurance can play a key role in strengthening the resilience of communities to climate risks.”