African Risk Capacity

The African Risk Capacity (ARC), a provider of parametric disaster insurance products to countries and other entities in Africa, has now paid out more than $170 million in claims to support its members in the aftermath of natural disasters.

African Risk Capacity Limited (ARC Ltd.), the financial affiliate and underwriting entity of the African Risk Capacity (ARC) Group, has entered into a landmark US $11.7 million partnership with the United States Government, to help expand access to parametric insurance and increase the size of its risk pool.

The African Risk Capacity (ARC), a provider of parametric disaster insurance products, has signed a first-of-its-kind multi-year, multi-peril agreement with the Government of Djibouti, designed with the help of parametric specialist Descartes Underwriting to protect the lives and livelihoods of one of the most climate-vulnerable communities on the African continent.

The African Risk Capacity (ARC), a provider of parametric disaster insurance products, has launched its first epidemic risk transfer product, with the parametric insurance backed by Munich Re as the lead reinsurance company and initially covering Senegal.

Parametric insurance products are slowly gaining momentum in Africa, but according to Lesley Ndlovu, CEO of the African Risk Capacity (ARC) Group’s insurer, Arc Ltd., more countries need to embrace parametric risk transfer, especially as Africa tries to fight the effects of climate change.

The African Risk Capacity (ARC), a provider of parametric disaster insurance products to countries and now other entities in Africa, wants to become the continent’s disaster risk financing provider of choice, but increasing its capacity and lowering-costs for country members remains key.

The country of Madagascar is the latest to benefit from a payout under its parametric drought insurance coverage from the African Risk Capacity (ARC), with almost $800k to be disbursed to the government.

The African Risk Capacity (ARC) has paid out and already disbursed US $5.3 million to the Government of Zambia after the African nations parametric drought insurance coverage was triggered.

The African Risk Capacity (ARC) will make at least a US $14.2 million payout to benefit the people of Malawi, after the country’s parametric drought insurance coverage was triggered.

More than 204,000 people in drought-affected parts of Mali are set to benefit from a $7.1 million payout by the African Risk Capacity (ARC) to the United Nations World Food Program (WFP), an ARC replica technical partner which has been subscribing to the climate insurance policy in Mali since 2017.