Britam paid claims amounting to Sh15 million in flood insurance to households around Tana River, in a trend that has seen uptick in new insurance policies.
The claims were paid to 300 vulnerable households in Tana River County under the Index-Based Flood Insurance.
The policy is designed to cushion small-scale farmers residing in flood-prone areas from the catastrophic effects of floods.
In its 2023 Sustainability Report, the insurer says over 2,800 pastoralists in drought-prone counties also benefited from benefited from the Index-Based Livestock Insurance, and over 7,500 smallholder farmers were covered against weather risks and pests/diseases under the Index-Based Crop Insurance.
“We are taking a leading role in mitigating climate risks and building resilience across Africa. The continent faces severe droughts and floods. We’re tackling these challenges head-on by reducing our carbon footprint,” Britam group managing director and CEO, Tom Gitogo, said in the report.
Index-based flood insurance, launched in 2023 with Oxfam and Swiss Re, protects small-scale Tana River farmers from floods.
The solution uses rainfall and river data for swift payouts, eliminating traditional claim assessments.
Last year, the country and the Sub-Saharan Africa region in general faced extreme weather events.
This saw the year record draught and heavy rainfall both of which caused havoc hitting hard businesses and families.
This was exacerbated by low insurance penetration for weather-related losses in Kenya.
“Britam addresses this gap with initiatives like index-based flood and crop insurance, protecting small-scale farmers against adverse weather effects,” said Gitogo.
“The programme successfully insured 300 families, disbursing Sh15 million in claims with 48-hour processing due to recent El Niño rains. Due to its success, the programme is expanding,” reads the report.
The report also details initiatives taken by the insurer to respond to climate change and reduce its carbon footprint.
In the review period, the insurer undertook efforts at e-waste management recycling 1,356 kilogrammes of decommissioned electronic equipment, and the implementation of the E–Claims and E–Contracts initiatives to reduce paper waste.
There were also bold efforts to reduce the consumption of electricity and fuel and a drive towards a circular economy.
The company established a reverse osmosis plant to purify contaminated water for reuse, providing an alternative during water rationing.
