As part of the Insurance Development Forum’s 10th Anniversary campaign, we are spotlighting in-country achievements. For this edition, we spoke with Yussel De Kraa, Senior Client Manager for the Middle East & Africa in Swiss Re’s Public Sector Solutions team, and Franziska Wasserhess, Senior Sustainability Manager at Allianz, about their work on the groundbreaking Accra Urban Flooding Risk Transfer Project. The project was delivered through the Tripartite Agreement Programme, created in a public–private partnership between the IDF, BMZ through the InsuResilience Solutions Fund (ISF), and UNDP.
Together, Yussel and Franziska reflect on how the partnership behind the project delivered innovative parametric flood insurance solutions, strengthened the national disaster management system, and created a blueprint for urban resilience across Africa.
The Accra initiative is one of the IDF’s flagship Tripartite projects. How does this public–private partnership model help reduce urban flood risk in practice?
The Tripartite model brings together the strengths of government, the private sector, and development partners in a way that no single actor could achieve alone.
One important element is the co-financing of product development. Creating innovative insurance products is resource-intensive and carries significant execution risks, particularly in developing markets. The German Federal Ministry for Economic Cooperation and Development (BMZ), through the InsuResilience Solutions Fund (ISF), co-finances these early development costs alongside IDF member private insurers. This creates a unique ecosystem where insurance industry partners can collaborate and innovate together to design a product that responds to the country’s specific needs. Once the product is delivered, and the government decides to implement the product in the market, the procurement can be opened to all insurers, ensuring competitive pricing. Without this phased approach, the private sector alone would be unlikely to invest in such high-risk product development.
The second element is sovereign insurance. When implemented, the parametric solution becomes a public–private partnership in itself: the private sector provides the risk capacity, while the government leads the emergency response once a payout is triggered. This structure supports more effective and predictable disaster risk management.
Finally, capacity building plays a key role. By giving authorities access to detailed risk insights, data and contingency protocols, the project strengthens UNDP’s efforts to build national capacity. This helps institutions such as the National Disaster Management Organisation (NADMO) to respond more effectively when severe flooding occurs.
What are the innovative risk transfer mechanisms developed for Accra, and how could they benefit vulnerable communities?
Accra experiences frequent and severe flooding; 27 major events in three decades, with more than half occurring in the capital. Yet financial protection remains limited: seven in ten Ghanaians lack access to insurance, and large portions of the population are excluded from basic financial services.
To address this, the project team developed two complementary parametric insurance products:
- Excess Rainfall (XSR) – which triggers payouts based on measured rainfall amounts.
- Flood Footprint Product (FFP) – an innovative solution that uses satellite-mounted radar to detect water on the ground, irrespective of rainfall. Although still a relatively new technology, FFP offers high accuracy and has proven effective globally.
A particularly important feature is the careful selection of insured areas to ensure that vulnerable households in low-income neighbourhoods and informal settlements are directly covered.
In addition, a UNDP-designed contingency plan ensures payouts can be used quickly and effectively, prioritising food relief, emergency shelter, hygiene promotion, restoration of livelihoods, and the repair of essential infrastructure.
Based on your experience, what lessons from the Accra project could help guide urban flood resilience efforts globally?
Several lessons stand out:
- Early stakeholder onboarding was essential. Engaging regulatory authorities and insurance associations early in the process helped align expectations and ensure compliance with regulatory frameworks.
- Clear communication played a major role, particularly in explaining the value of insurance in catastrophe risk management and emphasising that insurance delivers stability even when no payout is triggered.
- Capacity building through training programmes ensured the technical knowledge required to sustain and improve the product remains within Ghana’s institutional ecosystem.
- Planning for political shifts proved crucial. Anticipating transitions in government and securing committed champions early helped maintain project momentum.
- Alignment with the contingency plan enabled a seamless link between insurance payouts and practical disaster response.
- Data availability was a defining factor. Compiling a complete data inventory early helped determine timelines, manage uncertainty, and reduce risk margins.
- And finally, physical risk drivers matter too. For example, reducing waste blockages and dredging the Odaw River have already led to noticeable reductions in severe flooding. Insurance works best when paired with tangible risk reduction measures.
The need is immense, but collaborative models like the Tripartite Agreement Programme and the partnership behind it, can deliver scalable solutions and ensure that vulnerable communities benefit from innovative, data-driven protection.
