African Risk Capacity

African Risk Capacity (ARC) consists of ARC Group and ARC Insurance Company Limited (ARC Ltd). ARC Group was established in 2012 as a Specialized Group of the African Union to help Member States improve their capacities to better plan, prepare and respond to weather-related disasters. ARC Ltd is a mutual insurance facility providing risk transfer s... ervices to Member States through risk pooling and access to reinsurance markets. ARC was established on the principle that investing in preparedness and early warning through an innovative financing approach is highly cost-effective and can save upward of four dollars for every dollar invested ex ante. With the support of the United Kingdom, Germany, Sweden, Switzerland, Canada, France, The Rockefeller Foundation and the United States, ARC assists AU Member States in reducing the risk of loss and damage caused by extreme weather events affecting Africa's populations by providing, through sovereign disaster risk insurance, targeted responses to natural disasters in a more timely, cost-effective, objective and transparent manner. ARC is now using its expertise to help tackle some of the other greatest threats faced by the continent, including outbreaks and epidemics. Since 2014, 62 policies have been signed by Member States with US$101.7 million paid in premiums for a cumulative insurance coverage of US$722 million for the protection of 72 million vulnerable population in participating countries.Read More