African Risk Capacity (ARC) has received a significant $11.7 million grant from the US government to expand access to parametric insurance in Africa.
- The funding aims to enhance food security and build climate resilience by safeguarding smallholder farmers facing climate change-related disasters.
- Parametric insurance offers rapid payouts based on pre-agreed triggers, enabling timely responses to natural disasters.
- ARC plans to scale up technical assistance and increase coverage across Africa over the next three years with the support of this grant.
- The initiative will work closely with African governments to customize risk models, establish contingency plans, and integrate parametric insurance into policy frameworks.
- The project seeks to encourage the adoption of parametric insurance through collaboration with the African Union (AU) and regional economic communities.
- ARC’s long-term objectives include diversifying beneficiaries, expanding coverage to more countries, and developing demand-driven micro or meso insurance.