An innovative flood resilience project to support pre-arranged disaster financing and flood adaptation solutions for cities in Togo has been approved and will launch in three municipalities.
A parametric insurance mechanism that will cover three cities, and over 700,000 inhabitants
AXA Climate, part of global insurer AXA Group, London-based broker Howden, and Togo-based non-Governmental organisation Pionniers en Action pour le Développement Intégré à l’Environnement (PADIE), will be implementing the project for Togo’s fourth-largest city, Kloto 1, and key flood hot spots in the capital city Lomé – Golfe 1 and Golfe 7.
The InsuResilience Solutions Fund (ISF) is co-funding the implementation of an index-based flood insurance solution, which will enhance the financial capacity of municipalities in the event of a flood disaster and activate a predefined contingency plan to support disaster response and assist vulnerable affected populations.
“Climate risk insurance, particularly when part of comprehensive disaster risk management planning, is a decisive tool for supporting the resilience of vulnerable populations,” says Dr. Annette Detken, Head of the InsuResilience Solutions Fund.
“As a committed climate insurer, the science of adaptation is really part of our DNA. We are honoured to help these cities be better prepared for future floods,” says Karina Whalley, Head of Public Sector at AXA Climate.
Co-designing the project with local authorities is central to the consortium’s approach
“A series of workshops will be organized with municipal policymakers, technical experts and the community to identify precisely the priority adaptation measures and contingency actions that insurance payouts could finance,” explains Emile Atigaku, Executive Director of PADIE.
The project has been driven by Winny Dogbatse, Mayor of Kloto 1 and President of the Convention of Sub-Saharan African Mayors for Climate (CoM-SSA), which counts 367 African cities as members. “I am delighted to act for the resilience of Kloto 1 and to promote this innovative project in Africa and beyond at COP28,” says Mayor Dogbatse.
Lomé communes Golfe 1 and Golfe 7 are bordered by the Atlantic Ocean
“Our risk of flood is threefold: it may be pluvial, fluvial and coastal. It is critical to better measure where the risk comes from, in order to deduce priority adaptation measures,” analyzes Joseph Koamy Gomado, mayor of Golfe 1</h2, which has a population of 350,000.
“It’s time to act. Our residents are asking us for solutions against flooding. Insurance is a promising option,” agrees Kove Kossi, Deputy Mayor in charge of urban planning and the environment in Golfe 7 with 250,000 inhabitants.
Howden will provide co-financing of $100,000 for insurance premiums for the first year of the scheme. “We are pleased to accelerate the resilience of the three cities through this contribution,” says Stuart Martin, in charge of parametric insurance in Howden’s risk and resilience department.
“We are fortunate to have a strong relationship with the three cities, which will allow this project to be locally led and ambitious,” says Eliot Pernet, project lead at AXA Climate. The consortium is also supported by Lehady Soglo, former mayor of Cotonou, who has critical experience in building resilience in flood-prone West African cities.
The announcement of the project
The announcement of the approval of the ISF co-funding for the Togo project was made on Saturday, December 2, at 12pm, at the Togo Pavilion at COP28, in the presence of the three mayors, the Ministry of Environment of Togo, the ISF and project managers. The project is set to launch in early 2024.
