catastrophe pool

The African Risk Capacity (ARC) aims to double the coverage it provides to as much as $1.5 billion by 2020, by opening up its parametric insurance products to international organisations, such as United Nations agencies and non-governmental organisations (NGO’s).

The African Risk Capacity (ARC) has enlarged its risk pool, adding five new countries to those protected by the parametric insurer, growing the risk pool to $192m of capacity and utilising $70m of global reinsurance cover, which includes some ILS or collateralised protection.

The Australian government has launched a consultation process to see how access to insurance in  cyclone prone regions in the north can be eased, with measures such as a government backed catastrophe reinsurance pool or mutual insurer to be assessed.

The latest in our series of interviews features Dr Simon Young, CEO of African Risk Capacity Insurance Company Ltd (ARC Ltd), a catastrophe risk pooling insurer for African states established under the umbrella of the African Risk Capacity (ARC) Specialised Agency of the African Union (AU).

The African Risk Capacity (ARC), the first catastrophe insurance pool set up to provide cover to African nations, is set to more than double the number of countries that benefit from its products in its second year, with 12 likely to sign up, according to its director general.

The African Risk Capacity’s (ARC) pioneering catastrophe insurance pool, which operates as the ARC Insurance Company Ltd. (ARC Ltd), is set to make its first payout, totalling $25 million to three participating countries.

In response to the occurrence of increasingly intense and frequent natural disasters throughout the Philippines, ratings agency A.M. Best has reported that the nation is considering an insurance pool similar in design to Turkey’s fund, the TCIP.

Swiss Re proposed that Azerbaijan use parametric triggers for catastrophe insurance, to provide disaster recovery funding, as well as the establishment of a reinsurance pool to help to lower reinsurance coverage costs, at a meeting held in Baku.

Insurance and reinsurance brokerage Willis Group brokered the $55m of reinsurance protection that supports the first African parametric catastrophe insurance pool, which we announced the launch of yesterday by African Risk Capacity (ARC Ltd).

The first catastrophe insurance pool for African nations has been launched today by African Risk Capacity (ARC), a specialised agency set-up by the African Union to help member states become more resilient to extreme weather events and to protect food insecure populations.