Britam Holdings’ micro-insurance unit is targeting up to 20,000 households in Tana River with its flood cover that has been scaled up following a pilot phase that paid out Sh14.1 million claims in 2023.
The cover, dubbed Britam Mafuriko, is index-based and triggers payouts automatically when rainfall levels cross a set threshold. The cover benefited 300 families in Tana River during the 2023 floods that hit multiple counties in the country.
The expansion of the cover comes as Kenya grapples with cycles of floods and droughts with their intensity and frequency rising.
Britam offers the cover through its subsidiary, Britam Microinsurance which trades as Britam Connect.
Evah Kimani, Britam Connect CEO, said the expansion will see the underwriter use inclusive insurance to deepen resilience among communities exposed to climate shocks.
"Behind every cover is a person seeking dignity and security in moments of uncertainty. 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,” said Ms Kimani.
The initiative brings together Britam Connect as the lead insurer, Arid Lands Development Focus (ALDEF) for community engagement and Zambian consultancy Risk Shield for technical design. It is also supported by the InsuResilience Solutions Fund.
ALDEF will identify areas to roll out the cover, facilitate community engagement and ensure adherence to safe programming standards. Risk Shield will support product refinement and risk modelling while Britam Connect will handle underwriting.
The product uses satellite rainfall data and river-gauge measurements to trigger automatic payouts when flooding thresholds are breached, eliminating paperwork and enabling rapid financial relief.
Britam said the cover will be bundled with a mobile-based early warning system that uses existing infrastructure and local women's groups to deliver timely flood alerts.
Tana River County experienced devastating floods in late 2023 and early 2024 when the river flooded twice, affecting more than 10,200 households according to the Kenya Red Cross Society.
The region remains highly vulnerable, with households facing limited access to financial protection mechanisms.
Many of the households who were compensated after the 2023 and 2024 floods used the payouts to rebuild homes, restart businesses and purchase essential supplies. This success led to the signing of a Memorandum of Understanding (MoU) between Britam and the Tana River County government to scale the cover.
"This is a game-changer because it offers swift, dignified support rather than reactive humanitarian aid.By combining clinical data, supportive services and digital innovation, we're demonstrating that value-based protection can work for insured families whilst remaining commercially viable,” said Liza Maru, head of innovation at Britam Connect.
Britam Connect’s climate portfolio includes weather index and area yield crop insurance alongside livestock coverage, protecting about 560,000 farmers and pastoralists.
