The African Risk Capacity Limited (ARC Ltd), has announced a partnership agreement with Pula to deliver best-in-class agriculture index insurance products to protect African farmers from climatic risks.
The partnership with Pula provides the levers to connect participating farmers with regional insurance companies and global reinsurance firms to underwrite such risks.
The partnership will run for an initial period of 3 years and will enable Pula, an aggregator specialising in meso and micro parametric insurance in agriculture, to work closely with ARC Group in the areas of product development, marketing, premium collection and claims disbursements among others. Also, Pula’s strong capacity in area yield index, for example, will complement ARC Ltd’s strength in drought covers; just as the existing good relationships between Pula and farmers and other aggregators will benefit from ARC Ltd’s tested relationships with African governments and industry regulators.
In just over 6 years of operations, 56 policies have been signed by the ARC Member States with USD 83 million paid in premiums for cumulative insurance coverage of USD 641 million and the protection of 64.1 million vulnerable population in participating countries. From this, ARC Ltd, which is the commercial subsidiary of Africa Risk Capacity Group, made $60m payouts to the Governments of Senegal, Niger, Mauritania, Malawi, Cote D’Ivoire, the START Network and WFP following droughts episodes in 2014, 2015 and 2019. These funds have gone towards assisting over 2.5 million people whose livelihoods rely on agriculture, preventing the loss of hard-earned developmental gains in addition to 1m.