Flood-Risk Insurance in Flood-Prone Areas of Nigerian Cities: A Case Study of Agiliti, Ketu, Lagos

Abstract

Flooding, one of the effects of climate change, has become recurrent in Nigerian cities that are situated on floodplains. To recover from economic and financial losses after the flooding incidents, affected residents of such areas have been relying heavily on government relief efforts as well as assistance from family, friends and philanthropists. However, these sources have not always been reliable in terms of being available, coming in the right amounts as well as being timeous. There is therefore the need for more reliable and sustainable strategies for helping flood victims of Nigerian cities to recover economically and financially from flood incidents. Flood risk insurance is one of such more reliable and sustainable strategies. Unfortunately, empirical evidence points to a low level flood risk insurance by insurance companies, culture in parts of Nigerian cities that are prone to flooding. Agiliti, Ketu, a part of Lagos State that lies in close proximity to Ogun River, is known to have been affected by annual flooding in recent times. This paper has used this community as a case study to consider the level of flood-risk insurance culture among residents of flood-prone parts of Nigerian cities. The survey research method was adopted, with a structured questionnaire administered on 398 households. Based on descriptive statistics involving simple percentages, the researchers found a low level of life and property insurance in the study area. Accordingly, the study recommends education of residents on the key role of insurance in city resilience alongside increased marketing of flood-risk insurance by insurance companies, reduction of public mistrust of insurance companies and reduction of the burden of payment of premium by government and charitable organisations.