info@businessghana.com
Hybrid mutual insurer African Risk Capacity Limited (ARC Ltd.) is taking a leading role at COP29, advocating for innovative disaster risk insurance solutions to build climate resilience in Africa. This year's "Finance COP," taking place in Baku, Azerbaijan, from 11-22 November, is focused on improving and increasing the delivery of climate finance to developing countries, with negotiations centred around adopting a new climate finance target.
ARC Ltd. will drive critical conversations by hosting panels at the CARICOM and Climate, Peace & Transboundary Resilience pavilions. These panels will showcase advancements in disaster risk financing and highlight how these solutions can support long-term climate adaptation strategies.
ARC Ltd. also joins fellow Regional Risk Pools – the Caribbean Catastrophe Risk Insurance Facility Segregated Portfolio Company (CCRIF SPC), Pacific Catastrophe Risk Insurance Company (PCRIC), and Southeast Asia Disaster Risk Insurance Facility (SEADRIF) – to engage with global stakeholders during these two weeks and further address the impact of climate change on vulnerable communities.
Strengthening financial and operational preparedness
Southern Africa is highly susceptible to a range of shocks, including climate-related disasters like floods and droughts, as well as pandemics, conflict, and social unrest, which increase fragility in the region. The World Bank Group Strategy for Fragility, Conflict and Violence (FCV) 2020–2025 recognises climate change as a significant driver of FCV and as a threat multiplier.
This vulnerability is often compounded by a lack of financial preparedness. As a result, countries over-rely on reactive financing instruments and ad-hoc budget reallocations for disaster relief. This diverts crucial resources from health, education, and social protection, undermining broader development gains.
The Regional Emergency Preparedness and Inclusive Recovery (REPAIR) Programme, a collaborative initiative launched in July 2024 by the World Bank, ARC Ltd., the Global Shield, and their partners, aims to address this challenge by strengthening participating countries’ financial and operational preparedness for such shocks.
On 14 November, from 12:30 to 13:30, Senior Programme Manager Avinash Ramessur will lead ARC Ltd.’s panel discussion on “Strengthening Financial and Operational Preparedness Through Innovative Disaster Risk Financing Solutions”. The panel will explore the instruments and products developed to assist climate-vulnerable countries. The panellists are:
Innovative insurance solutions for the most vulnerable in Africa
Escalating extreme weather events disrupt agricultural productivity, leading to failed crops and damaged harvests, increasing food insecurity and water scarcity. Additionally, a humanitarian crisis is unfolding with disasters forcing people to flee their homes to live in overcrowded refugee camps or urban slums with little access to basic public services. These vulnerable and marginalised communities are particularly susceptible to ongoing climate calamities.
On 18 November, from 11:45 to 12:45, Underwriting Manager and Humanitarian Lead Gloria Womitso will moderate another ARC Ltd. session, exploring initiatives like the Replica Programme, which supports governments by enabling humanitarian organisations to replicate government disaster risk insurance policies, providing coverage for vulnerable communities. ARC Ltd. recently extended the programme to the UN Refugee Agency, and for the first time, refugees and displaced persons are also protected.
Womitso will be joined by:
Regional Risk Pools and loss and damage
Risk pooling mechanisms offer a lifeline for at-risk countries, especially small island and coastal states, disproportionately impacted by loss and damage caused by climate change. These mechanisms allow governments to transfer risk and access rapid liquidity when disasters strike.
While the Loss and Damage Fund aims to provide financial relief post-disaster, risk pools are based on a pre-arranged financing structure that enables rapid payouts to governments based on predetermined triggers, such as rainfall levels or drought conditions. This approach facilitates early intervention before communities are forced to resort to negative coping strategies, complementing the broader objectives of the Loss and Damage Fund.
The Regional Risk Pools entity – comprising the Caribbean Catastrophe Risk Insurance Facility Segregated Portfolio Company (CCRIF SPC), the Pacific Catastrophe Risk Insurance Company (PCRIC), the Southeast Asia Disaster Risk Insurance Facility (SEADRIF), and ARC Ltd. – was formed to assist countries across several regions in this regard.
On 13 November, ARC Ltd. CEO Lesley Ndlovu, CCRIF SPC CEO Isaac Anthony, PCRIC CEO Aholotu Palu, and SEADRIF Executive Director and Board Member Benedikt Signer led a discussion on how collaboration among the Regional Risk Pools, through sharing knowledge, experience, and resources for pre-arranged funding enhances climate resilience.
The risk pools can significantly expand their reach by attracting more international investment, and the Global Shield Programme (GSP), a joint initiative of the G7 and V20, has come on board. It provides additional funding, enabling higher coverage limits and greater access for low-income nations.
The Regional Risk Pool leaders will also join the Co-Director of the Global Shield Secretariat, Dr Astrid Zwick; Head of the Global Shield Solutions Platform, Annette Detken and Co-Head Karsten Löffler, on 16 November from 11:00 to 12:30, at the Climate, Peace & Transboundary Resilience Pavilion. They will discuss the implementation progress of the GSP for Regional Risk Pools, and its role it in strengthening the transboundary resilience of climate-vulnerable countries. The conversation will conclude with a signing ceremony signalling their commitment to a joint way forward.
ARC Ltd. innovates online
ARC Ltd. is launching its newly designed website at COP29, which reflects the company’s involvement in the disaster risk insurance industry and its impact on African countries. Following the company’s recent 10th anniversary, and as it continues to expand its reach across the continent, this refreshed online presence will better support member states and partners. The site creates a more intuitive space for collaboration and access to critical resources, reinforcing ARC Ltd.’s commitment to transparency, inclusivity, and accessibility, and making vital information and resources easier to find for a broader range of users.
Key new features include dedicated partners and member state sections, highlighting ARC Ltd.’s extensive network of public and private sector players involved in climate resilience efforts across Africa. These sections also demonstrate how ARC Ltd. and its partners share expertise and resources to tackle climate challenges.
A brand-new “Impact” section showcases case studies and success stories from member states and partners, offering first-hand accounts of the transformative potential of disaster risk financing solutions for vulnerable communities.
Visit our website on here.
A critical time for climate action
Vulnerable communities face unprecedented threats from climate change, including natural disasters, food insecurity, and displacement. COP29 provides a crucial opportunity to mobilise international resources and ensure accountability for delivering effective climate action. Integrating climate finance with disaster risk solutions is essential for a comprehensive approach to managing these escalating risks.
As ARC Ltd. engages with stakeholders at COP29, it seeks to ensure the voices of vulnerable communities are heard and addressed through targeted interventions. The insights shared and the partnerships formed will be instrumental in shaping a climate-resilient future for Africa, aligning with ARC Ltd.'s mission to protecting lives and livelihoods across the continent.
