RISK: African Risk Capacity’s insurance scheme expands

Five countries plan on joining African Risk Capacity, an African Union agency that insures countries against climate problems. ARC also plans to offer tropical cyclone and flood insurance starting next May.

Read: Promises and perils in 13 African countries

In its first year of operation, ARC insured Niger, Senegal, Mauritania and Kenya for $129 million, and paid out $26.3 million after three of the countries experienced low rainfall. Senegal, Niger and Mauritania used the money to distribute food and cash to its citizens, and subsidize animal feed.

Now in its second policy year, ARC expects Burkina Faso, Malawi, Mali, Gambia and Zimbabwe to join. Over the next for years, the agency aims to work with up to 30 countries.

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This story was originally published by Canadian Insurance Top Broker.