WorldStage– Cornerstone Insurance Plc, a Nigerian insurance company that’s been around since 1991 got the approval to underwrite the Lagos Flood Risk Transfer scheme, a project the United Nations Development Programme (UNDP) and the Insurance Development Forum (IDF) put together for Lagos. The German Federal Ministry for Economic Cooperation and Development (BMZ) provided the funding.
The partners developed and adopted a flood footprint-based index as the most suitable insurance model for the state know for its exposure to flooding risks. Under the scheme, affect communities receive payouts when flood depths reach 50 centimetres.
Vulnerable residents get rapid financial support through an insurance solution that enables faster response and recovery after major flooding events.
Cornerstone remains the leading underwriter alongside others after regulatory approval by the National Insurance Commission (NAICOM) approved. Africa Re provides reinsurance support.
“At Cornerstone Insurance, we understand that climate-related risks such as flooding continues to threaten livelihoods, businesses, and vulnerable communities across Lagos State,” Stephen Alango, managing director, said.
“Our participation in the Lagos Flood Risk Transfer Scheme reflects our commitment to providing innovative insurance solutions that strengthen resilience, support rapid recovery, and deliver meaningful financial protection to those most affected by environmental challenges.”
The state government has expressed its commitment to incremental premium payments over the next three years. And in the meantime, the scheme will become part of the state’s broader disaster management framework.
Lagos, a coastal state, lies 1.5 meters above sea level, thus increasing its exposure to flooding, subsidence, all compounded by illegal refusal disposal methods that clog up the drainage network.
