Product development: Design of a flood cover insurance for SMEs in industrial zones in Morocco

In Morocco, the Public-Private Partnership between Allianz Reinsurance and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) focused on developing integrated climate risk management approaches for small and medium-sized enterprises (SMEs) in industrial zones, including prevention measures and risk transfer solutions, with the aim to reduce their overall risk exposure. A need for new, innovative insurance products protecting SMEs in industrial zones against climate risks arose, because several places in the country, such as the Agadir zone, are increasingly exposed to heavy floods.

Therefore, within this project, an insurance product was designed to transfer residual flood-related risks of SMEs in industrial zones to the insurance market. This InFocus document gives an overview of the insurance design by providing information about the challenges and solutions as well as the lessons learned in this process.