The Managing Director of Cornerstone Insurance Plc, Stephen Alangbo, has thrown his weight behind the Lagos Flood Risk Transfer Scheme, an initiative set to provide a financial safety net for four million vulnerable residents in a strategic move to mitigate the devastating impact of annual flooding.
The project, a collaboration between the Lagos State Government, the United Nations Development Programme, and the Insurance Development Forum, seeks to address the estimated $4bn annual economic loss caused by flooding in Nigeria’s commercial hub.
Speaking on the partnership and the company’s role as a lead underwriter, Alangbo emphasised the urgency of the intervention, noting that the city’s geographical vulnerability made such a safety net a necessity.
“At Cornerstone Insurance, we understand that climate-related risks such as flooding continue to threaten livelihoods, businesses, and vulnerable communities across Lagos State,” Alangbo stated.
The scheme utilises a “parametric” insurance model, which triggers automatic payouts based on flood magnitude rather than lengthy manual damage assessments. Under the current technical guidelines, financial relief is activated once flood levels reach a depth of 50 centimetres.
Reaffirming the company’s dedication to the project’s success, the Cornerstone boss noted that the initiative aligns with the firm’s broader mission of social and environmental responsibility.
He 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.”
Lagos, a low-lying coastal city averaging just 1.5 metres above sea level, has faced intensifying rainy seasons between April and July.
The new scheme is now integrated into the state’s disaster management framework, with the state government committing to incremental premium payments over the next three years to ensure sustainability.
Highlighting the importance of such public-private synergy, Alangbo added, “We remain committed to our core values of empathy and innovation, ensuring that we deliver value beyond expectations through need-based products that safeguard the future of our communities.”
The scheme is further supported by the German Federal Ministry for Economic Cooperation and Development, with reinsurance provided by Africa Re, marking a significant milestone in Nigeria’s journey towards climate-smart financial planning.
