African Risk Capacity (ARC)

The immediate beneficiaries are the 41 AU member states as they receive technical assistance in financial disaster preparedness and weather risk management.

The indirect beneficiaries are smallholder households and the most vulnerable, food insecure populations of these countries, who receive more timely and effective assistance in the event of natural disasters.

• Improved access to innovative tools and insurance products for AU member states to manage effectively their natural disaster and epidemics risks
• Enhanced AU member state ability to anticipate, plan for, and respond to natural disasters and the outbreak of highly contagious epidemics in an efficient and effective manner.
• Increased scale and sustainability in ARC operation and insurance coverage.

Resultados previstos:  

• Around 20 insurance products with improved risk modelling and early warning platform developed.
• Robust contingency plans are developed by and with member states through training and technical support.
• Gender aspects are mainstreamed in disaster risk management systems.
• ARC Ltd. performs as financially robust and sustainable entity
• Insurance premium subsidies secured.

Resultados de las fases anteriores:  

• Since inception of the risk pool in 2014, ARC has issued 41 drought insurance policies to 10 AU member states, worth USD 580 million and covering 58 million vulnerable people with USD 59 million in pay-outs as of 30.1 1.19.
• ARC has designed an Outbreak & Epidemics insurance product for launch by mid of 2020 and a flood insurance product in 2021.
• ARC has proved its value as unique and innovative disaster management infrastructure in Africa that integrates early warning through risk modelling, contingency planning and risk transfer into one ecosystem.
• •ARC Ltd could not yet break even, as its insurance portfolio growth is behind schedule and premium collections from AU member states remain challenging

Fase 3 10.12.2019 - 31.12.2022   (Completed)