African Risk Capacity (ARC) is a specialist insurance company established by the African Union to help African governments improve their capacity to better plan for, prepare for and respond to extreme weather events and natural disasters and adapt to climate change. ARC works through collaboration and innovative finance to enable countries to strengthen disaster risk management systems and access rapid and predictable financing when disaster strikes to protect the food security and livelihoods of vulnerable populations. Since inception, ARC has provided coverage worth $660 million to insure 72 million vulnerable people in member states and paid out $65 million in claims.
Early warning systems and parametric insurance are key tools for disaster risk management in Africa which is vulnerable to the effects of climate change.
With growing awareness of the importance of ESG in business on the continent, African insurers are banding together to implement these principles.
