ARC and UN unite to increase parametric insurance coverage in Africa

Feb 05, 2018 | Financial Afrik

The Pan African Risk Management Mutual (African Risk Capacity, ARC), a specialized agency of the African Union, and the United Nations Economic Commission for Africa (ECA) have announced a partnership that will allow the two organizations to combine their efforts to strengthen African States’ climate risk insurance coverage.

The multilateral agreement was announced at the African Union’s annual summit in Addis Ababa and commits the ARC and ECA to build the capacity of their common member states by integrating risk management investments into government planning. ARC and ECA will collaborate in the areas of economic and climate risk research to promote risk transfer instruments. The UN estimates that Africa will see climate change adaptation costs reach 50 billion annually by 2050. “This partnership marks a new phase of collaboration in the fight against the effects of climate change in Africa,” said Mr. Mohamed Beavogui, Director General of the ARC. The future of disaster risk management is an increasingly urgent economic issue, and ECA’s expertise will strengthen the work of the ARC at the service of its Member States as well as resilience on the continent. During its four years of work, the CRA’s financial subsidiary (ARC Ltd) has contributed more than 34 million to member states affected by drought events. These resources have helped more than two million people affected by climate disasters. “Climate change is one of the biggest threats to Africa’s economic and social development,” said ECA Executive Secretary Vera Songwe. “We believe that efforts like our partnership with the ARC will help African countries better protect themselves against these threats. Source: Financial Afrik