Britam Connect has announced the expansion of its Index-Based Flood Insurance program (IBFI program). The initiative aims to protect 20,000 vulnerable households in Tana River County, scaling up from a successful pilot that provided a critical safety net during the devastating floods of late 2023.
The decision to scale follows a pilot program in Madogo Ward. During that phase, the program paid out Ksh. 15 million to 300 families affected by the 2023 floods. Unlike traditional insurance, which requires lengthy manual assessments and paperwork, this “parametric” product uses satellite rainfall data and automated river-gauge measurements.
When flooding reaches pre-determined thresholds, payouts are triggered automatically. This allows for rapid financial relief, enabling families to rebuild homes, restart businesses, and purchase essential supplies within days of a disaster.
“Behind every cover is a person seeking dignity and security in moments of uncertainty,” said Evah Kimani, CEO of Britam Microinsurance Company (K) Limited. “The success of our pilot proved that parametric insurance can provide swift, dignified support to families when floods strike, without the delays of traditional claims processes.”
Insurance penetration in Kenya remains below 3%, according to the latest Insurance Regulatory Authority (IRA) report, with climate-related coverage even lower among low-income populations. The Tana River initiative specifically targets these underserved groups, with a focus on women-led and Muslim households who often face the greatest barriers to formal financial services.
To ensure the program is accessible, Britam has designed premium structures that align with the irregular income patterns of agricultural and pastoral communities. The initiative is a collaborative effort involving:
- Britam Connect: Lead insurer and underwriter.
- InsuResilience Solutions Fund: Providing critical financial support for the scale-up.
- Arid Lands Development Focus (ALDEF): Leading community engagement and safe programming.
- Risk Shield: A Zambian consultancy providing technical design and risk modeling.
By leveraging existing digital infrastructure and local women’s groups, the program delivers timely flood alerts, allowing residents to move livestock or secure property before the water rises.
Liza Maru, Head of Innovation at Britam Connect, described the approach as a “fundamental shift” in disaster management. “This is a game-changer because it offers proactive support rather than reactive humanitarian aid,” she noted. “We’re demonstrating that value-based protection can work for families while remaining commercially viable.”