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The Index-based flood insurance (IBFI) is one of the outputs of the research under the initiative on Diversification in East and South Africa (UU), Work Package two (WP2): Bundling climate insurance solutions focusing on a case study in districts in Southern part of Zambia. This research was developed by the International Water Management Institute (IWMI) co-designed with an insurance institution and insurance product developers and co-implemented with the Ministry of Agriculture (MoA) and Disaster Management and Mitigation Unit (DMMU) of Zambia. The first part of the study covers Flood index development from observed rainfall and river stream flows, and flood model development to produce flood parameters in terms of flood depth, flood duration, and extent - complemented with remote sensing flood inundation to develop flood index products. The second part of the study focuses on interaction with the community, which is gender-sensitive, and stakeholder engagement at all levels. The development of the IBFI also relies on previous – post surveys on the IBFI implementation experience from insured communities.
This report consists of the activities we have undertaken to operationalize the IBFI implementation in Zambia. Satellite flood maps were produced to indicate the hazardous location and extent of flood impact in the southern province of Zambia that occurred at the beginning of 2023. The flood maps were used as a benchmark for IBFI product development in the pilot area. Multi-level stakeholder consultation has been conducted – first, a District-level stakeholder consultation aiming at site prioritization, knowledge sharing, and understanding the level of flood impact on the livelihoods. Second, stakeholder consultation with higher officials in Lusaka from the MoA, Zambia Meteorological Department (ZMD), Water Resources Management (WARMA), World Food Program (WFP), insurance institutions, and product developers. The meeting was aimed at laying a road map on how to co-develop and co-implement the index-based flood insurance in the selected pilot area. Together with stakeholders engaged in the district and complimented with earth observation flood maps, Namwal District, which is in the southern province of Zambia has been prioritized for bundling IBFI. Tabular data on the flood exposure elements from the district has been shared with IWMI, as presented in this report, which will be analyzed and used to support the development of IBFI products.
The first phase of product development for IBFI is to use observed data to produce the indices. Here, the observed rainfall, stream flow, and water level data were used to produce a design flood index insurance product in the Kafue flats. The second phase of the design of the flood index insurance product will be produced using flood modeling. So far, the flood model tool has been developed to produce flood parameters that will be used for insurance product development and the calibration and validation of the model is in progress.
