3rd December 2023

Climate adaptation: AXA Climate contributes to the launch of a parametric insurance project across multiple cities in Togo
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AXA Climate, part of global insurer AXA Group, London-based broker Howden and Togo-based non-governmental organisation Pionners en Action pour le Développement Intégré à l’Environnement(PADIE) will be implementing the project for Togo’s fourth largest city including the capital city, Lomé.
This project aims to establish predetermined financing in the case of a disaster, support climate change adaptation in these cities, and address upcoming trends in the coming years in West Africa: increasing droughts, intense rainfall, and floods(IPCC report). West Africa and Togo are highly vulnerable to devastating floods, which affected 5 million people and 19 countries in 2022, according to the World Food Programme(WFP).
A parametric insurance mechanism that will cover three cities, and over 700,000 inhabitants. AXA Climate, Howden and PADIE will be implementing the project for Togo’s fourth largest city Kloto and key flood hot spots in Lomé.
To be co-funded by the InsuResilience Solutions Fund(ISF), the project will assess the most cost-efficient flood adaptation measures and set up insurance programmes for the three cities.
For the implementation of this parametric insurance, several data sources will be tested, including local and satellite data. These sources will enable the quick calculation of the flooded area and water depth per pixel(with an insured value per pixel).
Furthermore, this mechanism will provide prompt compensation and financial support to municipalities in the event of a flood disaster. It will also activate a predefined contingency plan to support disaster response and assist vulnerable affected populations.
Co-designing the project with local authorities is central to the consortium's approach. "A series of workshops will be organised with municipal policymakers, technical experts and the community to identify precisely the priority adaptation measures and contingency actions that insurance payouts could finance," explained 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'm delighted to act for the resilience of African cities and to promote this innovative project in Africa and beyond at COP28," says Mayor Dogbatse.
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.
A project with already identified financial terms, Howden will co-fund $100,000 of insurance premiums for the first year of the scheme.
The approval of the ISF co-funding for the Togo project will be formally announced 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.
Karina Whalley, head of Public Sector at AXA Climate, comments: "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."
Eliot Pernet, Project lead at AXA Climatem added: "We are fortunate to have a strong relationship with the three cities, which will allow this project to be locally-led and ambitious."
Dr. Annette Detken, head of the InsuResilience Solutions Fund: "Climate risk insurance, particularly when part of comprehensive risk management, is a decisive tool for the resilience of populations."
Stuart Martin, in charge of parametric insurance in Howden's risk and resilience department, said: “We are pleased to accelerate the resilience of the three cities through this contribution."
Kove Kossi, Deputy Mayor in charge of urban planning and the environment in Golfe 7 with 250,000 inhabitants, added: It's time to act. Our residents are asking us for solutions against flooding. Insurance is a promising option."

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