Floods occur regularly in Accra, Ghana, after heavy rain events. HKV has been involved continuously in flood risk related projects in the Greater Accra Region since 2017. We performed the feasibility study that led to the ongoing GARID project, which will reduce flood risk by implementing various structural and non-structural measures. We designed the Flood Early Warning System for the Greater Accra Region, of which implementation is now in preparation.
This month, we start with a new development; flood insurance for the government of Ghana. Together with insurance agencies Allianz and Swiss RE we will develop a so-called parametric insurance or index-based insurance, a non-traditional insurance product that offers pre-specified payouts based upon a trigger event. The trigger events will be observed flood or precipitation events. The advantage is that the payments can be made faster, allowing the government to respond immediately. HKV will help to define the payouts and trigger events, based on flood and damage models for the region. Other project partners are ICEYE, who will deliver satellite data and FloodTags, who will use data from social media for detection of (historic) flood events.
The InsuResilience Solutions Fund (ISF), funded by the KfW Development Bank on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) and managed by Frankfurt School of Finance & Management, will co-fund the risk transfer project alongside the IDF insurance industry members. Read the press release of the Insurance Development Forum (IDF) here: https://www.insdevforum.org/press-release-public-private-partnership-to-develop-flood-insurance-and-build-financial-resilience-in-ghana/