Pikine Senegal second-largest city with a population of 874,000 is taking a bold step toward climate resilience with the launch of a new index-based flood insurance scheme aimed at protecting its most vulnerable communities from the increasing threat of seasonal flooding.
Located near the Senegal River estuary and composed of 12 densely populated communes, Pikine is highly exposed to flood risks especially during the rainy season from August to December. The city’s flood vulnerability has worsened due to a combination of deteriorating vegetation cover, failing drainage systems, and a rising groundwater table linked to decreased water extraction from the Thiaroye aquifer.
To address this growing crisis, the InsuResilience Solutions Fund (ISF) has partnered with an international consortium led by AXA Climate and including Humanity Insured, urbaSEN, and Eau Vie Environnement (EVE). Together, they are designing a parametric insurance solution that will help Pikine manage the financial fallout of both pluvial (rain-related) and fluvial (river-related) flooding events.
Under the new model Pikine will serve as the policyholder, with insurance payouts triggered by precise flood-related indicators, such as rainfall levels, satellite data, or flood extent mapping. Unlike traditional insurance where damages must be assessed post-event, this index-based approach allows swift payouts calibrated using historical flood loss data to reduce basis risk and ensure timely response.
The funds will not go directly to individuals but will instead be used for public good restoring critical infrastructure and purchasing emergency relief equipment like motorised pumps, first-aid kits, and temporary shelters. The allocation of benefits will be guided by local authorities, technical teams and community focus groups, ensuring transparency and relevance to on-ground needs.
The initiative will also help identify and prioritise flood adaptation strategies in the most affected communes based on cost-effectiveness and feasibility. Importantly, it adopts a gender-sensitive lens, involving women in contingency planning and focusing on restoring infrastructure vital to their livelihoods particularly markets.
This innovative insurance solution aims to empower Pikine to recover faster after disasters while building long-term urban resilience. It also aligns with a broader ISF-backed effort through the Fonds de Solidarité National (FSN) to enhance financial protection for vulnerable groups across Senegal.
By integrating early-warning mechanisms with proactive financial tools, Pikine is setting an example for climate-smart disaster risk management in West Africa.